Gastar Exploration, Ltd., in conjunction with First Source Texas Inc. (FST), has entered into an agreement with an undisclosed private industry participant to acquire a 75% interest in approximately 9,100 gross acres (6,500 net acres) that lie immediately adjacent to and nearby Gastar’s existing East Texas Deep Bossier acreage. Assuming that Gastar’s and FST’s existing partners in the Deep Bossier play exercise their rights to a proportionate share of these leases, Gastar is expected to hold a 45% working interest position in these additional leases. With the addition of these leases, Gastar, FST and their minority partners will control a total of approximately 22,200 gross seismically controlled acres in the East Texas Deep Bossier play. The terms of the agreement called for Gastar, FST and their partners to make an initial payment of $800,000 and a subsequent final payment of $800,000 on or before Aug. 15, 2004. “The addition of this acreage, which Gastar believes significantly enhances our position in the Deep Bossier play, is another direct consequence of the positive results achieved from Gastar’s initial Deep Bossier well, the Belin Trust A-1 well,” said J. Russell Porter, Gastar’s COO.

Calgary-based Taylor NGL Limited Partnership said Thursday that it has completed the previously announced acquisition of three interconnected natural gas processing facilities and related gathering systems in the Lethbridge area of southern Alberta for C$30.5 million. The acquired facilities include the Retlaw Gas Plant, the Enchant Gas Plant and the Turin Gas Plant, which are known collectively as the RET Complex. The facilities add a net 104 MMcf/d of sweet and sour gas processing capability to the Partnership. The RET Complex is supported by over 500 kilometers of natural gas gathering pipelines that provide coverage over an area in excess of 2,500 square kilometers. Currently, there are approximately 42 producers, with production from almost 900 wells, processing natural gas through the RET Complex.

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