Gastar Exploration, Ltd.J. Russell Porter - President, CEO

Gastar Exploration, Ltd.J. Russell Porter - President, CEO

This report contains or incorporates through reference forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words “expects," "projects," "plans," 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 press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas 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 oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; 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 oil and gas prices and other risk factors as described in the Company’s Annual Information Form filed as of May 2003, on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

Publicly Traded on TSE, Symbol YGA•GSREF.PK – US Listing

107 Million Shares Outstanding

Current $300 Million USD Market Cap

Strong Balance Sheet

Gastar Exploration, LTDGastar Exploration, LTD

Natural Gas Focused Natural Gas Focused Exploration & ProductionExploration & Production

Committed ManagementCommitted Management

Each member of senior management has approximately 20 years direct experience in the business

Insider ownership of 48% of Gastar

“Out of box” approach to E&P business

Gastar Exploration, LTDGastar Exploration, LTD

Low Risk, Good Return - Coal Bed MethaneLow Risk, Good Return - Coal Bed Methane

Powder River Basin, WY Powder River Basin, WY 40,000+ Acres40,000+ Acres

PEL 238, NSW, Australia ~2.0 Million AcresPEL 238, NSW, Australia ~2.0 Million Acres

Gippsland Basin, Australia ~2.0 Million AcresGippsland Basin, Australia ~2.0 Million Acres

Higher Risk, High Return - Conventional E & PHigher Risk, High Return - Conventional E & P

Deep Hilltop, East TX Deep Hilltop, East TX 25,000 Acres25,000 Acres

Appalachia Basin, WVAppalachia Basin, WV 60,000+ Acres60,000+ Acres

Areas of OperationAreas of Operation

Balanced Portfolio of PropertiesBalanced Portfolio of Properties

East Texas East Texas Deep HilltopDeep Hilltop

Gas PlayGas Play

East Texas Basin is one of the most East Texas Basin is one of the most active drilling areas in the USactive drilling areas in the US

Acreage in deeper part of East Acreage in deeper part of East Texas Basin Texas Basin

Two previous wells drilled on Two previous wells drilled on Hilltop Structure in 80’s produced Hilltop Structure in 80’s produced at rates up to 5MMCFD un-at rates up to 5MMCFD un-stimulatedstimulated

Deep Hilltop, East TXDeep Hilltop, East TX

Deep Hilltop, East TXDeep Hilltop, East TX

55% average working interest in 55% average working interest in 22,000 acres22,000 acres

130+ possible well locations 130+ possible well locations

1.4 TCF gross potential1.4 TCF gross potential

750 BCF net to Gastar750 BCF net to Gastar

Deep Hilltop, East TXDeep Hilltop, East TX

Gastar Fridkin-Kaufman Ltd #1Gastar Fridkin-Kaufman Ltd #1

Drilled to 20,050’ TDDrilled to 20,050’ TD

Production Casing set to 19,175’Production Casing set to 19,175’

Completion and Testing over next Completion and Testing over next 90 days90 days

Deep Hilltop, East TXDeep Hilltop, East TX

Area ofArea ofAcreageAcreage

Holdings Holdings

Belin Trust A-1

Hilltop Lakes Resort #1

Lanier #1

Gastar Fridkin-Kaufman, Ltd. #1

Deep Hilltop, East TXDeep Hilltop, East TX

Present Value for Various Gas Prices

$500

$550

$600

$650

$700

$750

$800

$850

$900

$950

$1,000

$2.80 $3.00 $3.20 $3.40 $3.60 $3.80 $4.00

Gas Price

Pre

se

nt

Va

lue

@ 2

0%

-

$1

,00

0,0

00

Hilltop Project – Deep Sands

•1,512 BCF EUR for 180 Ft & 8537 Acres•106 Wells @ 14.263 BCF per Well•81 Acres per Well Average

•$6,000,000 per Well•4 Year Drilling Program

Assumptions:

Randall & Dewey

Deep Hilltop, East TXDeep Hilltop, East TX

Trenton Black River, WVTrenton Black River, WV

Play originated by CNR with 9 wells Play originated by CNR with 9 wells testing from 50-250 MMCFD AOFtesting from 50-250 MMCFD AOF

Can only identify prospects through the Can only identify prospects through the use of seismic datause of seismic data

Strategic advantage through affiliated Strategic advantage through affiliated seismic acquisition and processing seismic acquisition and processing companiescompanies

Have identified over 100 prospective well Have identified over 100 prospective well sites through extensive 2D seismic sites through extensive 2D seismic evaluationevaluation

Shot

O nondaga

O riskany

Trenton

D eep C am brian

1.0

2.0

270 260 250 240 230 220 210 200 190 180 170 160 150 140 130 120 110Shot Shot

ProposedLocation

Trenton-B lack R iverAnom aly

Line N E-15R oane C o., W est V irg in ia

TBR Faulted Target

1160 1170 1180 1190 1200 1210 1220 1230 1240 1250 1260 1270 1280 1290 1300 1310 1320 1330 1340 1350 1360 1370 1380 1390 1400 1410 1420 1430 1440Shot Shot

Beekm antow n A nom aly

Line G S I-RT-1W est V irg in ia

Logansport P rospect

1.0

2.0

O nondaga

O riskany

Trenton

D eep C am brian

Beekm antow n

A

D epth Tim e

5000

10000

15000

20000

Beekmantown ProspectDim-out over deep seated

feature

860 870 880 890 900 910 920 930 940 950 960 970 980 990 1000 1010 1020 1030 1040 1050 1060 1070 1080 1090 1100 1110Shot Shot

Trenton-B lack R iver Anom aly

Line G SI-RT-1W est V irg in ia

Sm ith fie ld P rospect

1.0

2.0

O nondaga

O riskany

Trenton

D eep C am brian

D epth Tim e

Beekm antow n Anom aly

5000

10000

15000

20000

Beekm antow n

B

De vo nia n Sha le

d isturb e d

fra c ture d

Fractured Shales

Deep TBR and Beekmantown

Targets

Harrison Co.

Marion Co.

Wetzel Co.

101

150

250

488

A

A’

200

300

350

400

450

BB’

Doddridge Co.

101

200

250

300

350

400

4 50

C

C ’94 8

150

900

950 100 0

10 50

1100

12001150

MILES

0 51 2 3 4

Structural TrendsAntic line

Syncline

Shale TrendDisturbed

Fractured

G astar W est Virg in ia Fractured Devonian Shale P rospect

C C ’

W est Virgin ia

Powder River Basin, WYPowder River Basin, WY

Created Earn-In JV w/ Pinnacle Gas ResourcesCreated Earn-In JV w/ Pinnacle Gas Resources

$6.7 MM Cash Payment$6.7 MM Cash Payment

• RMG Earned 50% of Existing Producing & RMG Earned 50% of Existing Producing &

Undeveloped LeasesUndeveloped Leases

$14.5 MM Spending Commitment$14.5 MM Spending Commitment

• 240+ Wells in 2004240+ Wells in 2004

Redeployment of Capital to Higher Return Areas Redeployment of Capital to Higher Return Areas

(East Texas, WV)(East Texas, WV)

Cash Flow Funds Future DevelopmentCash Flow Funds Future Development

Powder River Basin, WYPowder River Basin, WY

PEL 238PEL 238

Gippsland BasinGippsland Basin

Gastar Australia CBM Gastar Australia CBM HoldingsHoldings

Good Energy Business EnvironmentGood Energy Business Environment

•Favorable attitude towards natural resourcesFavorable attitude towards natural resources

•Environmentally pro-natural gas. Largest Environmentally pro-natural gas. Largest emitter of greenhouse gas per capitaemitter of greenhouse gas per capita

•Under-explored compared to US. Less than Under-explored compared to US. Less than 10,00010,000 onshore wells compared with over 2 onshore wells compared with over 2

million in USmillion in US

Australian Natural GasAustralian Natural GasMarketMarket

Internal MarketsInternal Markets

•Shortages & brownouts have occurred as Shortages & brownouts have occurred as traditional supplies are depletingtraditional supplies are depleting

•Markets deregulating, welcoming new Markets deregulating, welcoming new supplierssuppliers

•Increasing gas demand for power Increasing gas demand for power generation in domestic & industrial sectorsgeneration in domestic & industrial sectors

Australian Natural GasAustralian Natural GasMarketMarket

External MarketsExternal Markets

•Liquefied Natural Gas (LNG) to Asia and Liquefied Natural Gas (LNG) to Asia and West Coast US Markets - Projects in final West Coast US Markets - Projects in final planning stagesplanning stages

•Chemicals (fertilizer, etc), energy intensive Chemicals (fertilizer, etc), energy intensive transplants, gas-to-liquids, etc.transplants, gas-to-liquids, etc.

Australian Natural GasAustralian Natural GasMarketMarket

PEL 238 – New South WalesPEL 238 – New South Wales

2.0 million acres with 140 core holes and 18 conventional wells drilled to define coals

Large acreage position•Larger fairway than San Juan Basin•More acreage than top 4 PRB

players combined Multiple coals with large potential

Netherland Sewell & Assoc. estimates Gas In Place – 17 TCF in coals greater than 10M thick (6.6 TCF Recoverable)

Strategically located near markets – 400km from Sydney (33% of population)

GUNNEDAH BASIN

Joint Venture w/ Eastern Star Gas•Gastar Received US $3MM Cash•Eastern Completes AU $7MM in Work

Programs•Eastern Earns up to 65% of CBM Rights•Gastar Receives Up to US $10MM Cash

Upon Production Thresholds Being Met

Accelerates CBM Development with Local Operator

Provides Access to Power Generation Opportunities

Allows Gastar to Focus on Gippsland Basin Concession

PEL 238 – New South WalesPEL 238 – New South Wales

GUNNEDAH BASIN

75% working interest in 2 million acre Exploration License

License covers entire onshore portion of basin

Represents one of the largest single accumulations of Brown Coal in the world

•Coal seams are hundreds of feet thick

•1,000 feet of coal above 3,000 foot depth

Coals of similar age and characteristics as Powder River coals

Gippsland Basin - VictoriaGippsland Basin - Victoria

A unique CBM asset with world class potential

Technical study by Dr. Guy Holdgate, a leading Gippsland coal expert, estimates GIP reserves in the range of 37-57 TCF

Extensive downhole data from bore holes and conventional wells

Ideally located near Melbourne and two gas pipelines

Pilot program planned mid 2004

Mineral Sands Potential

Gippsland Basin - VictoriaGippsland Basin - Victoria

Continue JV Development in Powder River BasinContinue JV Development in Powder River Basin

22ndnd and 3 and 3rdrd Deep Hilltop wells drilled and completed Deep Hilltop wells drilled and completed

Fractured Shale wells & Deep TBR well in WVFractured Shale wells & Deep TBR well in WV

PEL 238 long term test of re-completed wellsPEL 238 long term test of re-completed wells

• Joint Venture with Local ProducerJoint Venture with Local Producer

Drill Gippsland pilot program and begin testing Drill Gippsland pilot program and begin testing CBM and Mineral Sands potentialCBM and Mineral Sands potential

Gastar 2004 ProgramGastar 2004 Program

Risked Asset ValueRisked Asset ValuePer Share PotentialPer Share Potential

Deep Hilltop, TX 350 to 500 BCF $7.00

Trenton Black River 100 to 200 BCF $2.00

Powder River Basin 90 BCF $1.00

Australia

PEL 238 - NSW 6,600 BCF $5.00

Gippsland - Victoria 7,500 BCF $9.00

Risked Asset Value per Share $24.00