portion of gastar investor presentation for august 2015 focused on marcellus/utica

20© 2015 Gastar Exploration Inc.

MARCELLUS AND UTICA


Core Position in the Marcellus and Utica

Core acreage proven in both the Marcellus wet gas and the Utica dry gas plays

~11,000 net acres in Marcellus and 8,600 leased (additional 1,900 pending(1)) net acres in dry Utica 50% WI, 41.0% NRI Marshall & Wetzel Counties

~35,700 net acres in eastern area 100% WI, 80% NRI Utica potential being studied

Acreage position lies near other leading players in the basin

1. 1,900 net acres pending includes acreage with lease negotiations in progress2. As of 06/30/2015. Includes ~1,300 acres in Pennsylvania expiring 2015 and forward

Appalachia Overview Marcellus and Utica Map

~46,700 total net acres(2)

MarcellusFairway

UticaFairway

UticaDry GasCore Gastar

WestAcreage

GastarEastAcreage


Infrastructure Overview

Operational Improved run-time No flow restrictions expected

Processing Total system capacity to 720

MMcf/d Central receipt point capacity –

155 MMcf/d Adequate takeaway capacity Firm transport

50 MMBtu/d Additional firm available

Water System 14-mile system in Marshall County

Reduced water costs from $2.50/Bbl to $0.20/Bbl

Supports both Marcellus and Utica development


NE Basis

Source: Tudor Pickering Holt & Co January 2015 Midstream Bulletin

~15 Bcf/d of incremental takeaway capacity announced since YE 2013

• Gas and NGL basis differentials widened in 2015• Gas infrastructure buildout to alleviate• REX reversal to west August 1, 2015 1.8 Bcf


Marcellus ShaleActivity concentrated in liquids-rich portion of the play

1. Based on 06/30/15 Wright & Company, Inc. report utilizing SEC pricing2. Based on EURs and related type curves developed by the Company using assumptions and methodologies described on page 3 of this presentation

Marshall & Wetzel Counties, W. Va. Atinum 50% JV Partner High Btu gas and condensate yields

30–40 Bbls/MMcf condensate 40–50 Bbls/MMcf NGLs (pre-ethane recovery)

Marcellus Core Statistics 1P Reserves: 42.6 MMBoe(1)

Q2’15 net production: 6.5 MBoe/d; 42% liquids(11% oil)

Remaining locations: gross 113, net 57 51 gross PUDS

Summary Economics(2)

EUR Well Cost IRR PV-106.9 Bcfe $6.5MM 6% ($1.1MM)

Gross Appalachia Production


Marcellus Drilling Locations

Marcellus Shale Development

Development Plan Gastar has drilled and completed

74 gross (35.4 net) horizontal wells and one vertical well to date

Recent completions:• Armstrong (7 wells) - 12/19/2014• Hansen ( 3 wells) - 12/26/2014• Goudy (3 wells) - 03/3/2015• Hoyt (2 wells) - 4/5/2015• Blake (2 wells) - 4/18/2015

No further drilling in 2015 No near term lease expirations

42% HBP 71% 2015/16 expirations include

automatic payment extensions

Marshall Co. - Marcellus WellsProducing - 74PUDS – 51

Wetzel Co. - Marcellus WellsProducing - 1Future Locations - 62

OHIO

West Virginia

OHIOWest Virginia


Utica ShaleAcreage position lies in core of the Dry Gas Window

1. 1,900 net acres pending includes acreage with lease negotiations in progress2. Other operator production rates obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar

Exploration Inc.3. Based on 06/30/15 Wright & Company, Inc. report utilizing SEC pricing4. Based on EURs and related type curves developed by the Company using assumptions and methodologies described on page 3 of this presentation

Overview Underlies core 11,100 acre Marcellus

position 9,200 currently leased with an

additional 1,900 pending(1)

Majority of Utica acreage is held by Marcellus drilling

Utica Statistics 1P Reserves: 10.7 MMBoe(3)

Q2 2015 production: 6.8 MMcf/d (No liquids)

Pending locations: ~54 net 6 PUDS

Summary Economics(4)

EUR Well Cost IRR PV-1018.5 Bcf $13.0MM 10% $0.0MM

Utica Activity Map(2)

GPOR30 MMcf/d(Irons #4H)

GPOR30 MMcf/d(Irons #4H)

Hess1 wellIP: 25 MMcfe/d

Hess1 wellIP: 25 MMcfe/d

Rex3 wellsIP: 18–19 MMcfe/d

Rex3 wellsIP: 18–19 MMcfe/d

Antero2 wellsIP: 20–22 MMcfe/d

Antero2 wellsIP: 20–22 MMcfe/d

Antero5 wellsIP: 37–53 MMcfe/d (peak)

Antero5 wellsIP: 37–53 MMcfe/d (peak)

MHR 32 MMcf/d(Stadler #3UH)

MHR 32 MMcf/d(Stadler #3UH)

Eclipse23 MMcf/d(Tippens #6H)

Eclipse23 MMcf/d(Tippens #6H)

Gastar Simms U-5HIP 29.4 MMcf/dGastar Simms U-5HIP 29.4 MMcf/d

GPOR2 wellsIP: 29–45 MMcfe/d

GPOR2 wellsIP: 29–45 MMcfe/d

GPORIP: 21 MMcfe/dAvg. 14 MMcfe/d in Q3 ’13(Stutzman #1-14H)

GPORIP: 21 MMcfe/dAvg. 14 MMcfe/d in Q3 ’13(Stutzman #1-14H)

UticaDry Gas

Core

UticaFairway

OHIO

WESTVIRGINIA

Gastar Blake U-7HIP 36.8 MMcf/dGastar Blake U-7HIP 36.8 MMcf/d

RiceIP: 42 MMcfe/d(Bigfoot #9H)

RiceIP: 42 MMcfe/d(Bigfoot #9H)

Chevron25 MMcf/d(Howard Conner #6H)

Chevron25 MMcf/d(Howard Conner #6H)

MHR 46.5 MMcf/d(Stewart Winland #1300U)

MHR 46.5 MMcf/d(Stewart Winland #1300U)

Stone EnergyIP 30.0 MMcf/d(Pribble 6HU)

Stone EnergyIP 30.0 MMcf/d(Pribble 6HU)

Range Resources59 MMcf/d1 well

Range Resources59 MMcf/d1 well

SouthwesternIP 25.0 MMcf/d(Messenger 3H)

SouthwesternIP 25.0 MMcf/d(Messenger 3H)

Eclipse21.3 MMcf/d avg(Shroyer 2H&4H)

Eclipse21.3 MMcf/d avg(Shroyer 2H&4H)


Utica Shale Development

Development Plan Utica Drilling Locations Blake well completed, 6,600’ lateral

with 34 stage frac ~$15.3MM D&C costs

Only 6 of 108 gross locations in PUD category

Timing of additional Utica development based on market conditions

Utica Drilling Locations

Blake U-7H6600’ Lateral Length

Simms U-5H4447’ Lateral Length

Marshall Co. - Utica WellsProducing - 2Future Locations - 77

Wetzel Co. - Utica WellsFuture Locations - 31

West Virginia

OHIOWest Virginia

OHIO



05/18/15

36.8

~6,235

6,617

34

21.7

18.3(1)

1.4(1)

Blake U-7H and Simms U-5H demonstrate the repeatability of dry gas Utica across Gastar’s Marshall County position

Blake U-7H Simms U-5H

Initial production date

Initial 48 hours sales rate (MMcf/d)

Flowing casing pressure psi

Lateral length (feet)

Frac stages

30 day initial production (MMcf/d)

ITD daily production average (MMcf/d)

ITD cumulative production (Bcf)

08/29/14

29.4

~6,700

4,447

25

19.8

9.8(1)

3.1(1)

1. Daily production average as of 07/31/2015


Utica Acreage is the dry gas “Core of the Core”

Point Pleasant Shale Porosity Cross-Section

High PorosityHigh TOCHigh Carbonate Content

Lexington Shelf

Point Pleasant Shale Porosity Cross-SectionA A’

Up to 17% Porosity

4-6% Porosity

GASTAR SIMMS U-5H

Landing pointVERY HIGH

PRESSRURE, HIGH RATE

GAS WINDOW


Point Pleasant Paleogeography

Point Pleasant Paleography and SSTVD Structure

Higher porosities in Pleasant Point are associated with the depositional environment of the Lexington Shelf Region

Point Pleasant SSTVD StructureEast and West Appalachian Acreage on same shelf with similar features

Structure is very benign in Point Pleasant over west acreage

East Marcellus acreage appears prospective in the Point Pleasant

Point Pleasant Paleogeography Source: After Wickstrom and others, 1992 and Cornell, 2000. Image from http://mcz.Harvard.edu/Departments/InvertPaleo/Trenton

Scotts Run Pad-EQT 3,221’ treated interval 24 hr. IP: 72.9 MMcf 22.6 MMcf / 1000’ 8,641 psi flowing

casing pressure 0.95 pore pressure gradient


Appalachia Summary

53.3 MMBoe 1P reserves with SEC PV-10 of $75.9MM(1)

Appalachia Statistics 1P Reserves: 53.3 MMBoe(1)

1P PV–10: $75.9MM(1)

~ 57 net Marcellus locations on existing acreage ~ 54 net Utica locations on existing acreage

Net Drilling Locations

1. Based on 06/30/15 Wright & Company, Inc. report utilizing SEC pricing

Complete 7.0 gross (3.5 net) Marcellus wells Complete 1.0 gross (0.5 net) Utica wells

2015 Capital Activity


APPENDIX



1. Other operator data obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar Exploration Inc.

Utica Dry Gas Comparative Statistics(1)


Point Pleasant Gross Isopach Thickness

GPOR Irons #4H

IP: 30.3 MMcf/d

Eclipse Tippens #6H

IP: 23.2 MMcf/d

MHRStalder #3UH

IP: 32.5 MMcf/d

GST SIMMS U-5H

IP: 29.4 MMcf/d

BLAKE U-7HIP: 36.8 MMcf/d

Low thickness variations in the Point Pleasant across Gastar’s acreage

CVXConner #6H

IP: 25 MMcf/dEclipse Shroyer #2H & 4H

Combined IP: 42.5 MMcf/d

MHRStewart Winland #1300U

IP: 46.5 MMcf/d

EQTScotts Run PadIP: 72.9 MMcf/d


Utica Activity around Marshall & Wetzel Counties

1. Other operator data obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar Exploration Inc.

(1)


Simms/Dangel Cross-Section

Statoil USA Onshore Prop Inc Dangel 1-H Gastar Simms U-5H

5 Miles to west of Gastar’s acreage Porosity: 6 – 12% Net pay of +/- 74’

Target Depth: 11,350’ TVD Porosity: Avg. 11% (up to 17%) Net pay of 92’


$0.63 $0.65

$0.77 $0.69

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

Marcellus Utica Mid-Continent Total Company

$0.79 $0.78

$0.01

$0.43

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00


$3.63 $1.62

$8.04 $5.51

$2.53

$1.15 6,334

879

6,030

13,243

0

2,800

5,600

8,400

11,200

14,000

$0.00

$2.80

$5.60

$8.40

$11.20

$14.00

Marcellus Utica Mid‐Continent TotalCompany

Total Direct Costs Daily Production

$2.21 $0.19

$7.27

$4.38

$2.53

$1.15

$9.80

$5.53

$0.00

$2.40

$4.80

$7.20

$9.60

$12.00


TransportationLease Operating Expense

Prod. Tax Total Direct Costs vs. Daily Production

Production Costs by Area – YTD’15 ($/Boe)

Note: Excludes impact of hedge gains and losses

$10.57

$6.66

Workover expense

Workover expense

portion of gastar investor presentation for august 2015 focused on marcellus/utica

News & Politics

marcellus wells

gastar exploration

utica core acreage

dry utica

marcellus wet gas

utica development

net horizontal wells

utica shale acreage