Gastar Exploration Reports First Quarter 2009 Financial and Operational Results

Production increased 26% to 30 MMcfe per day from fourth quarter 2008

HOUSTON, May 11 /PRNewswire-FirstCall/ -- Gastar Exploration Ltd. (NYSE Amex:
GST and TSX: YGA) today reported financial and operational results for the
three months ended March 31, 2009.

Excluding impairment charges and unrealized hedging losses, the Company
reported a net loss of $1.3 million, or $0.01 per share, for the first quarter
of 2009. Including the effect of a non-cash impairment of natural gas and oil
properties of $68.7 million and an unrealized hedging loss of $196,000, the
Company reported a net loss of $70.2 million, or $0.34 per share. This
compares to adjusted net income of $2.5 million, or $0.01 per share, for the
first quarter of 2008, excluding a $1.4 million unrealized hedging loss.

Net cash flows provided by operating activities for the three months ended
March 31, 2009 was $13.3 million, compared to $14.3 million for the comparable
period in 2008.

Excluding the unrealized gas hedging loss, natural gas and oil revenues in the
first quarter of 2009 decreased 20% to $13.5 million, compared to the first
quarter of 2008. This decrease was due to a 28% decline in realized natural
gas prices, partially offset by a 13% increase in total production. Average
daily production for the first quarter of 2009 was 30.0 MMcfe, compared to
26.5 MMcfe for the first quarter of 2008 and 23.9 MMcfe in the fourth quarter
of 2008. The average price for natural gas, including realized hedging
activities, decreased in the first quarter of 2009 to $4.99 per Mcf, from
$6.96 per Mcf in the first quarter of 2008 and $5.23 in the fourth quarter of
2008. Excluding the benefit of the realized hedges, the average realized
price for natural gas in the first quarter of 2009 was $3.37 per Mcf.

Lease operating expense (LOE) was $1.9 million in the first quarter of 2009,
compared to $1.5 million in the first quarter of 2008. LOE per Mcfe increased
9% to $0.70 in the first quarter of 2009, compared to $0.64 per Mcfe during
the first quarter of 2008. This increase per Mcfe was primarily due to higher
non-recurring 2009 workover costs in Texas of $0.13 per Mcfe.

Operations Review and Update
In East Texas, first quarter net production from the Hilltop area averaged
25.3 MMcfe per day, up from 18.1 MMcfe per day in the fourth quarter of 2008.
The majority of the production growth was from the Belin #1, which was placed
on production in late December 2008 and is the Company's best producing well
to date. The Belin #1 came on production at an initial gross rate of 41.2
MMcf per day and post quarter end is averaging approximately 16.5 MMcf per
day. Capital expenditures for the first quarter in East Texas were $9.4
million to recomplete one well and to finish drilling and complete the Lone
Oak Ranch ("LOR") #7. The LOR #7 was drilled and encountered two middle
Bossier zones and one upper Bossier zone and was completed in the deepest
zone. Current gross production from the LOR #7 is approximately 3.0 MMcfd
after an initial gross sales rate of 6.9 MMcfd.

As a result of our activity in East Texas, the field's average production
increased 40% from the fourth quarter of 2008 to the first quarter of 2009,
although it is expected to decline in the second quarter due to natural
decline rates. Currently, we are drilling a deep Bossier well, the Wildman
#5, and we plan on releasing the drilling rig and deferring additional
drilling in East Texas until natural gas prices and capital markets improve.

In Appalachia, we have assembled more than 41,000 net acres in the Marcellus
Shale play and have drilled 10 shallow wells, including three during the first
quarter. Seven of these wells are on production, and the remaining wells are
scheduled to be on production during 2009. These wells will allow us to hold
the leases with production, while we finalize a plan for exploration and
development of the deeper Marcellus objective. We do not expect to drill
additional shallow wells until we secure a joint venture partner or until
natural gas prices improve. We will continue to maintain our leases through
renewals, extensions and renegotiations of the few drilling commitments
related to our interests. Net production from our Appalachia properties
averaged 500 Mcfe per day in the first quarter.

In New South Wales, Australia, the PEL 238 development project continues to
progress, and we expect to begin first commercial sales of natural gas early
in the third quarter of 2009. In February 2009, we acquired a 35% interest in
the Wilga Park Power Station, which will initially be the market for natural
gas produced from PEL 238. In late April 2009, we completed the drilling of
the first two dual-lateral horizontal production pilots, each consisting of
three vertical wells intersected by two horizontal well sections, which are
currently dewatering. Early in the third quarter of 2009, all the wells are
expected to be on production, and it is expected that coal bed methane
produced from the pilot will be transported to the Wilga Park Power Station
and utilized for power generation. An additional multi-lateral horizontal
production pilot is underway in the Dewhurst area of PEL 238, based on the
previous successful coring work. Subsequent locations for two additional
pilots will be determined on the basis of results of planned coreholes to be
drilled during 2009. In April 2009, we began a corehole evaluation program in
the Coonarah area to test coals found when shallow conventional wells were
drilled in the area.

J. Russell Porter, Gastar's Chairman, President and CEO, stated, "We produced
higher volumes of natural gas in the first quarter, compared to the fourth
quarter of 2008, thanks to the outstanding performance of the Belin #1, which
came on production in late December in East Texas. Additionally, we
experienced a boost in production from the completion of the Lone Oak Ranch
#7, which began producing in late January as well as from a workover in late
March in East Texas. In New South Wales, we expect to realize first
commercial sales when we begin delivering natural gas to the Wilga Park Power
Station early in the third quarter of this year.

"We are exploring all avenues to bolster liquidity. We currently are involved
in numerous conversations at various stages of development with potential
partners and asset purchasers in each of our three primary asset areas. In
the Marcellus Shale, we have identified a potential joint venture partner, who
is working through due diligence on our assets in the play. In New South
Wales, where the merger and acquisition market continues to be active, we are
in discussion with several parties regarding our ownership interests in PEL
238 and adjacent undeveloped acreage. The outcomes of all of these
discussions are uncertain: however, we will provide additional updates as they
become available."

Liquidity and Capital Budget
At March 31, 2009, the Company had cash and cash equivalents of $18.9 million.
Planned capital expenditures for our properties for the remainder of 2009
total $49.9 million, consisting of $14.7 million in East Texas, $4.0 million
in Appalachia, $15.0 million in New South Wales, $800,000 in the Powder River
Basin and other capital costs, and an additional $15.4 million for capitalized
interest cost. To supplement our cash flow and help fund this capital budget,
we are seeking joint venture partners for the development of several of our
properties, with immediate emphasis on securing a development partner in our
Marcellus Shale acreage, as well as the possibility of selected asset sales.

Based on our current capital plan, our current cash on hand and projected
internally generated cash flow, we project that we will need to raise an
additional $70.0 million to fund our remaining 2009 exploration and
development activities, working capital needs and meet scheduled debt
maturities in 2009. See "Liquidity and Capital Resources" in our Quarterly
Report on Form 10-Q for the period ended March 31, 2009 for a discussion of
potential consequences resulting from an inability to raise the additional
$70.0 million necessary to fund our remaining 2009 exploration and development
activities, working capital needs and meet our 2009 debt service obligations.

Gastar Exploration Conference Call
Gastar Exploration's management team will hold a conference call on May 12,
2009, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time), to discuss these
results. To participate in the call, dial (480) 629-9692 at least 10 minutes
early and ask for the Gastar Exploration conference call. A replay will be
available approximately two hours after the call ends and will be accessible
until May 19. To access the replay, dial (303) 590-3030 and enter the pass
code 4068694.

The call will also be webcast live over the Internet at . To listen to the
live call on the Web, please visit Gastar's Web site at least 10 minutes early
to register and download any necessary audio software. An archive will be
available shortly after the call. For more information, please contact Donna
Washburn at DRG&E at (713) 529-6600 or e-mail dmw@drg-e.com

About Gastar Exploration
Gastar Exploration Ltd. is an exploration and production company focused on
finding and developing natural gas assets in North America and Australia. The
Company pursues a strategy combining deep natural gas exploration and
development with lower risk CBM and shale resource development. The Company
owns and operates exploration and development acreage in the deep Bossier gas
play of East Texas and Marcellus Shale play in West Virginia and Pennsylvania.
Gastar's CBM activities are conducted within the Powder River Basin of Wyoming
and concentrated on more than 6.0 million gross acres controlled by Gastar and
its joint development partners in Australia's Gunnedah Basin (PEL 238, PEL 433
and PEL 434) located in New South Wales.

Safe Harbor Statement and Disclaimer

This news release includes "forward looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. A statement identified by the
words "may", "expects", "projects", "anticipates", "plans", "believes",
"estimate", "will", "should" and certain of the other foregoing statements may
be deemed forward-looking statements. Although Gastar believes that the
expectations reflected in such forward-looking statements are reasonable,
these statements involve risks and uncertainties that may cause actual future
activities and results to be materially different from those suggested or
described in this news release. These include risks inherent in the drilling
of natural gas and oil wells, including risks of fire, explosion, blowouts,
pipe failure, casing collapse, unusual or unexpected formation pressures,
environmental hazards, and other operating and production risks inherent in
the natural gas and oil drilling and production activities, which may
temporarily or permanently reduce production or cause initial production or
test results to not be indicative of future well performance or delay the
timing of sales or completion of drilling operations, risks with respect to
natural gas and oil prices, a material decline in which could cause Gastar to
delay or suspend planned drilling operations or reduce production levels,
risks relating to the receipt of a "going concern" statement in our auditor's
report on our 2008 consolidated financial statements, and risks relating to
the availability of capital to fund drilling operations that can be adversely
affected by adverse drilling results, production declines and declines in
natural gas and oil prices and other risk factors described in Gastar's Annual
Report on Form 10-K and other filings with the SEC at www.sec.gov and on the
System for Electronic Document Analysis and Retrieval (SEDAR) at
www.sedar.com.
Contact:
Gastar Exploration Ltd.
J. Russell Porter, Chief Executive Officer
713-739-1800 / rporter@gastar.com

Investor Relations Counsel:
Lisa Elliott / Anne Pearson
DRG&E: 713-529-6600
lelliott@drg-e.com / apearson@drg-e.com

The NYSE Amex and Toronto Stock Exchange have not reviewed and do not
accept responsibility for the adequacy or accuracy of this release.

- Financial Tables Follow -

GASTAR EXPLORATION LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

For the Three Months
Ended March 31,
---------------
2009 2008
---- ----
(in thousands, except share
and per share data)
REVENUES:
Natural gas and oil revenues $ 13,461 $ 16,846
Unrealized natural gas hedge loss (196) (1,413)
------ -------
Total revenues 13,265 15,433

EXPENSES:
Production taxes 157 269
Lease operating expenses 1,877 1,542
Transportation and treating 493 459
Depreciation, depletion and amortization 7,999 6,409
Impairment of natural gas and oil properties 68,729 -
Accretion of asset retirement obligation 87 82
General and administrative expense 2,958 4,275
----- -----
Total expenses 82,300 13,036
------ ------

INCOME (LOSS) FROM OPERATIONS (69,035) 2,397

OTHER (EXPENSES) INCOME:
Interest expense (1,162) (2,096)
Investment income and other 13 823
Foreign transaction loss (3) (37)
--- ----

INCOME (LOSS) BEFORE INCOME TAXES (70,187) 1,087
Provision for income taxes - -
-------- -----

NET INCOME (LOSS) $ (70,187) $ 1,087
========= =========

NET INCOME (LOSS) PER SHARE:
Basic $ (0.34) $ 0.01
========== ========
Diluted $ (0.34) $ 0.01
========== ========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted 207,262,117 207,098,570
=========== ===========

GASTAR EXPLORATION LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

March 31, December 31,
2009 2008
---- ----
(Unaudited)
(in thousands)

Current Assets:
Cash and cash equivalents $ 18,863 $ 6,153
Other 13,031 18,386
------ ------
Total current assets 31,894 24,539

Property, plant and equipment, net 196,036 252,527
Total other assets 10,197 11,371
------ ------
Total assets $238,127 $288,437
======== ========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Other $ 26,353 $ 30,076
Current portion of long-term debt 174,717 151,684
------- -------

Total current liabilities 201,070 181,760

Other long-term liabilities 5,307 5,095
Total shareholders' equity 31,750 101,582
------ -------
Total liabilities and shareholders' equity $238,127 $288,437
======== ========

PRODUCTION AND PRICES

For the Three Months
Ended March 31,
---------------

2009 2008
---- ----
Production:
Natural gas (MMcf) 2,693 2,406
Oil (MBbl) 1 1
Total (MMcfe) 2,698 2,413

Total (MMcfed) 30.0 26.5

Average sales prices:
Natural gas (per Mcf), including
impact of realized hedging activities $ 4.99 $ 6.96
Oil (per Bbl) $39.47 $96.84

CURRENT HEDGE POSITION

The following derivative transactions were outstanding with associated
notional volumes and hedge prices for the index specified as of April 11,
2009:

Notional
Daily Total Base
Derivative Volume Volume Fixed
Date Period Instrument(1) Average Remaining Price
(MMBtu) (MMBtu)

10/15/08 Cal 09 CC 5,000 1,375,000
10/15/08 Cal 09 (P) 5,000 1,375,000
01/29/09 Apr-Dec 09 P 14,994 4,123,453
05/05/09 Jan-Mar 10 CC 10,000 900,000
05/05/09 Jan-Mar 10 (P) 10,000 900,000
10/15/08 Cal 09 B 5,000 1,375,000 -$0.3825
10/15/08 Cal 09 I 5,000 1,375,000
02/12/09 Apr-Dec 09 B 2,000 550,000 -$0.3750
03/16/09 Apr-Oct 09 B 2,000 428,000 -$0.2800
03/25/09 Apr-Oct 09 B 2,000 428,000 -$0.2850
11/14/08 Cal 09 B 1,500 412,500 -$2.2200
11/21/08 Cal 09 B 1,000 275,000 -$2.0200
02/12/09 Apr-Dec 09 B 850 233,750 -$1.7500
04/07/09 Cal 10 B 1,000 365,000 -$1.3100
04/07/09 Cal 11 B 1,000 365,000 -$1.2100

Production
Area
Date Puts Call Index Hedged
(MMBtu) (MMBtu)

10/15/08 $8.00 $12.05 Nymex-HH TX
10/15/08 $5.75 Nymex-HH TX
01/29/09 $5.00 Nymex-HH TX/WY
05/05/09 $5.00 $7.00 Nymex-HH TX
05/05/09 $3.50 Nymex-HH TX
10/15/08 HSC (2) TX
10/15/08 HSC (2) TX
02/12/09 HSC (2) TX
03/16/09 HSC (2) TX
03/25/09 HSC (2) TX
11/14/08 CIG (3) WY
11/21/08 CIG (3) WY
02/12/09 CIG (3) WY
04/07/09 CIG (3) WY
04/07/09 CIG (3) WY

(1) CC = Costless collars.
(1) B = Basis Swaps.
(1) I = Index swaps; Gas Daily to IFERC Monthly Index.
(1) P = Put purchased.
(1) (P) = Put sold.
(2) East-Houston-Katy -- Houston Ship Channel.
(3) Inside FERC Colorado Interstate Gas, Rocky Mountains.

SOURCE Gastar Exploration Ltd.

J. Russell Porter, Chief Executive Officer of Gastar Exploration Ltd.,
+1-713-739-1800, rporter@gastar.com; or Investor Relations Counsel, Lisa
Elliott, lelliott@drg-e.com, or Anne Pearson, apearson@drg-e.com, both of
DRG&E, +1-713-529-6600, for Gastar Exploration Ltd.