Strongly expect an upturn. We should obtain more info on the third well in the mid-continent play. Even if this well produces 50% of the #2 well it would indicate that at least some of the acreage to be obtained in the acquisition has serious potential. This, along with the fact that nat gas is above $4.00 and most companies have a $3.00+/- breakeven point should mean an upward movement.
Good luck longs.
For example, from their last quarterly earnings, they were getting an average price for heged natural gas of $3.80. Directly from their earnings report: "Gastar had hedges in place covering approximately 70% of natural gas, 39% of condensate and oil and 64% of NGLs production for the fourth quarter of 2012. We continue to maintain an active hedging program covering a portion of our estimated future production, which is reported in our periodic filings with the Securities and Exchange Commission." Let's hope they were able to get a better price than $3.80 for their hedges for the first quarter.
If you look at Gastar's filings, Nat Gas prices aren't going to affect it that much. It hedges the majority of its production which is why it was able to do so well when prices were low, but it could actually come back and hurt them if NG prices go up too high.