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 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

 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, LTD Natural Gas Focused Exploration & Production

Committed 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, LTD

 Low Risk, Good Return - Coal Bed Methane  Powder River Basin, WY 40,000+ Acres  PEL 238, NSW, Australia ~2.0 Million Acres  Gippsland Basin, Australia ~2.0 Million Acres  Higher Risk, High Return - Conventional E & P  Deep Hilltop, East TX 25,000 Acres  Appalachia Basin, WV 60,000+ Acres Areas of Operation Balanced Portfolio of Properties

East Texas Deep Hilltop Gas Play

 East Texas Basin is one of the most active drilling areas in the US  Acreage in deeper part of East Texas Basin  Two previous wells drilled on Hilltop Structure in 80’s produced at rates up to 5MMCFD un- stimulated Deep Hilltop, East TX

 55% average working interest in 22,000 acres  130+ possible well locations  1.4 TCF gross potential  750 BCF net to Gastar

Deep Hilltop, East TX  Gastar Fridkin-Kaufman Ltd #1  Drilled to 20,050’ TD  Production Casing set to 19,175’  Completion and Testing over next 90 days

Deep Hilltop, East TX Area of AcreageHoldings Belin Trust A-1 Hilltop Lakes Resort #1 Lanier #1 Gastar Fridkin- Kaufman, Ltd. #1

Deep Hilltop, East TX

Hilltop Project – Deep Sands 1,512 BCF EUR for 180 Ft & 8537 Acres BCF per Well 81 Acres per Well Average $6,000,000 per Well 4 Year Drilling Program Assumptions: Randall & Dewey Deep Hilltop, East TX

Trenton Black River, WV  Play originated by CNR with 9 wells testing from MMCFD AOF  Can only identify prospects through the use of seismic data  Strategic advantage through affiliated seismic acquisition and processing companies  Have identified over 100 prospective well sites through extensive 2D seismic evaluation

TBR Faulted Target

Beekmantown Prospect Dim-out over deep seated feature

Fractured Shales Deep TBR and Beekmantown Targets

Powder River Basin, WY

 Created Earn-In JV w/ Pinnacle Gas Resources  $6.7 MM Cash Payment RMG Earned 50% of Existing Producing & Undeveloped Leases RMG Earned 50% of Existing Producing & Undeveloped Leases  $14.5 MM Spending Commitment 240+ Wells in Wells in 2004  Redeployment of Capital to Higher Return Areas (East Texas, WV)  Cash Flow Funds Future Development Powder River Basin, WY

PEL 238 Gippsland Basin Gastar Australia CBM Holdings

 Good Energy Business Environment Favorable attitude towards natural resources Favorable attitude towards natural resources Environmentally pro-natural gas. Largest emitter of greenhouse gas per capita Environmentally pro-natural gas. Largest emitter of greenhouse gas per capita Under-explored compared to US. Less than 10,000onshore wells compared with over 2 million in US Under-explored compared to US. Less than 10,000onshore wells compared with over 2 million in US Australian Natural Gas Market

 Internal Markets Shortages & brownouts have occurred as traditional supplies are depleting Shortages & brownouts have occurred as traditional supplies are depleting Markets deregulating, welcoming new suppliers Markets deregulating, welcoming new suppliers Increasing gas demand for power generation in domestic & industrial sectors Increasing gas demand for power generation in domestic & industrial sectors Australian Natural Gas Market

 External Markets Liquefied Natural Gas (LNG) to Asia and West Coast US Markets - Projects in final planning stages Liquefied Natural Gas (LNG) to Asia and West Coast US Markets - Projects in final planning stages Chemicals (fertilizer, etc), energy intensive transplants, gas-to-liquids, etc. Chemicals (fertilizer, etc), energy intensive transplants, gas-to-liquids, etc. Australian Natural Gas Market

Current & Future Natural Gas Pipelines Australian Natural Gas Market

Current & Future Natural Gas Pipelines Australian Natural Gas Market

PEL 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 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 - 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 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 - Victoria

 Continue JV Development in Powder River Basin  2 nd and 3 rd Deep Hilltop wells drilled and completed  Fractured Shale wells & Deep TBR well in WV  PEL 238 long term test of re-completed wells Joint Venture with Local Producer Joint Venture with Local Producer  Drill Gippsland pilot program and begin testing CBM and Mineral Sands potential Gastar 2004 Program

Risked Asset Value Per Share Potential Deep Hilltop, TX 350 to 500 BCF$7.00 Trenton Black River100 to 200 BCF$2.00 Powder River Basin90 BCF$1.00 Australia PEL NSW6,600 BCF$5.00 Gippsland - Victoria 7,500 BCF$9.00 Risked Asset Value per Share $24.00