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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 19, 2006
(October 19, 2006)
GASTAR EXPLORATION LTD.
(Exact Name of Registrant as Specified in Its Charter)
ALBERTA, CANADA 001-32714 38-3324634
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1331 LAMAR STREET, SUITE 1080
HOUSTON, TEXAS 77010
(Address of principal executive offices)
(713) 739-1800
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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SECTION 8 - OTHER EVENTS
ITEM 8.01 OTHER EVENTS.
On October 19, 2006, Gastar Exploration Ltd. announced that a ten well coal
bed methane drilling program had been commenced on its 1.0 million gross acre
Exploration License 4416 (EL 4416) in the Gippsland Basin located in Victoria,
Australia. Gastar has committed and funded approximately $6.5 million for its
75% interest in the 10 CBM wells, which are being operated by CBM Resources Pty,
Ltd., a subsidiary of Geostar Corporation. Gastar owns its interest in EL 4416
jointly with Geostar. The 10 well program will include the establishment of two
"5-spot" pilots, one incorporating the two previous wells, and two wells
designed to test for the presence and production potential of the coals at
additional locations within the license area. The two previously drilled wells
are also scheduled to have larger capacity pumps installed to facilitate
de-watering operations.
In a related matter, Gastar has sent a letter to Geostar Corporation
requesting arbitration to settle certain disputed issues and interpretations
under a Participation and Operating Agreement (POA) with Geostar and its
subsidiaries concerning Geostar's failure to deliver certain documents, requests
for cash calls that far exceed the funds actually required for operations within
a reasonable time frame and requesting cash calls while simultaneously asserting
that certain provisions of the POA, including overhead reimbursement rates, need
to be renegotiated on terms that Gastar believes are not reasonable and are not
within industry standards .
A copy of the Company's press release, dated October 19, 2006, regarding
this filing is attached as Exhibit 99.1 hereto and is incorporated herein by
reference.
SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
The following is a list of exhibits furnished as part of this Form 8-K:
Exhibit No. Description of Document
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99.1 Press release dated October 19, 2006.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GASTAR EXPLORATION LTD.
Date: October 19, 2006 By: /s/ J. RUSSELL PORTER
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J. Russell Porter
President and Chief Executive Officer
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EXHIBIT INDEX
Exhibit No. Description of Document
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99.1 Press release dated October 19, 2006.
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