Gastar’s Marcellus/Utica Production Goes DOWN in 2014 – Why?

Gastar Exploration is an independent oil and gas driller with active drilling programs in the Hunton Limestone horizontal play, the Woodford Shale and the Meramec Shale--all three of which occupy roughly the same acreage in the Mid-Continent area. Of interest to MDN is Gastar's program in West Virginia and Pennsylvania, where they drill in both the Marcellus and now the Utica Shale layers. At last check-in Gastar owns 58,900 acres of leases in the northeast. As we reported in February, Gastar plans to spend a minimal amount drilling in the northeast in 2015--essentially just completing a few wells already drilled (see Gastar Finishing 5 Wells, Then Idling Rigs in Marcellus/Utica). In their 2014 year-in-review, Gastar reports year over year production in the Marcellus/Utica went down--a story we don't often see. Usually production goes up. Why down for Gastar? They drilled and brought fewer wells online in the Marcellus/Utica in 2014 than in previous years. Here's the Appalachin Basin section from Gastar's 2014 update...

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