Message #16 From:
NewsBot Date: December 6, 2006 10:20:00 AM
GST News Gastar's Reduced 'Hold/3' Rating and Lowered CDN $5.00 Target Valuation Attributed to Dilution, Production Trends and Natural Gas Pricing by Investrend Research Analyst Lytel in Q3 'Institutional' Update
NEW YORK--(BUSINESS WIRE)--(Investrend Research Syndicate) Investrend Research Analyst Kipley J.
Lytel, CFA has reduced both the rating and target valuation to “Hold/3”
and CDN $5.00 for Gastar Exploration Ltd. (AMEX: GST) (TSX: YGA) in a Q3 “Institutional”
Research Update, noting exacerbating effects of a sequential decline in
production while revenues continued to decline.
The full Gastar report, including important disclosures and disclaimers,
is at http://www.investrendresearch.com.
In the report, the analyst also stated:
“Gastar continued to experience revenue
declines in the throws of declining natural gas pricing structure, the
Q3FY06 results were exacerbated by a sequential decline in production.
Production growth in East Texas in the current quarter was not as robust
as the previous quarter due to delays in getting the multiple pay
zones...
“Revenue declined both year-over-year and
sequentially, which moved net losses to $7.7 million in Q3FY06 and $57.3
million in the three quarters ending 09/30/06, respectively. In light of
the ongoing adverse trend, we were not surprised that Gastar has pursued
funding sources earlier than anticipated...
“Gastar focus remains focused within the
exploratory locations of multiple Bossier pay sands over a large portion
of the Company’s acreage...
“The arrival of a third drilling rig this
month and completion of the 3-D seismic survey in early 2007 should
allow Gastar to move from strictly exploration activities to a
combination of exploration and early development...”
Gastar is enrolled in Investrend Research’s
pioneering professional research program, which facilitates independent
analysts to provide coverage for shareholders in companies that
otherwise would have little or no analyst following. Gastar’s
enrollment fee for coverage was $24,800 per annum, and the fees have
been paid by the company. Analysts are paid in advance of initial
reports by Investrend Research to eliminate pecuniary interest, and
neither the analyst nor anyone associated with Investrend Research may
own or trade in the stocks of a company under coverage.
