8-K

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 5, 2010 (October 5, 2010)

GASTAR EXPLORATION LTD.

(Exact Name of Registrant as Specified in its Charter)

ALBERTA, CANADA	001-32714	98-0570897
(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))

SECTION 7 – REGULATION FD

Item 7.01  Regulation FD Disclosure

On October 5, 2010, Gastar Exploration Ltd. (the “Company”) announced that its borrowing base under the Second Amendment to the Company’s Amended and Restated Credit Agreement has been increased to $47.5 million.  The borrowing base had previously been reduced from $47.5 million to $40.0 million primarily as a result of delays in returning the Belin #1 well to production following recompletion attempts.

In accordance with General Instruction B.2 of Form 8-K, the information presented herein under Item 7.01 and set forth in the attached Exhibit 99.1 is deemed to be “furnished” solely pursuant to Item 7.01 of this report and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information or the Exhibit be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, each as amended.

SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The followingis a list of exhibits filed or furnished as part of this Current Report.

Exhibit No.	Description of Document
99.1	Press Release, dated October 5, 2010.

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 5, 2010	By:	/s/  J. RUSSELL PORTER
		J. Russell Porter
		President and Chief Executive Officer

 

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EXHIBIT INDEX

Exhibit No.	Description of Document
99.1	Press Release, dated October 5, 2010.

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EX-99.1

Exhibit 99.1

	NEWS RELEASE
	Company Contact:
	Gastar Exploration Ltd.
	J. Russell Porter, Chief Executive Officer
	713-739-1800 / rporter@gastar.com
	Investor Relations Counsel:
	Lisa Elliott / Anne Pearson
	DRG&E  : 713-529-6600
	lelliott@drg-e.com / apearson@drg-e.com

FOR IMMEDIATE RELEASE

Gastar Exploration Announces Increase in Borrowing Base

HOUSTON, October 5, 2010 – Gastar Exploration Ltd. (NYSE Amex: GST) announced today that its borrowing base under the Second Amendment to the Company’s Amended and Restated Credit Agreement has been increased to $47.5 million.  The borrowing base had previously been reduced from $47.5 million to $40.0 million primarily as a result of delays in returning the Belin #1 well to production following recompletion efforts.

J. Russell Porter, Gastar’s President and Chief Executive Officer, stated, “We are pleased with the  bank group’s decision to return our borrowing base to its previous level following our recent ramp-up in production.  With the expected funding from our new joint venture in the Marcellus Shale, we do not expect to draw heavily on this facility in the near future.  However, the increase in borrowing capacity gives us additional flexibility to pursue our current capital plans or new opportunities as they arise.”

The credit facility has a scheduled maturity date of January 2, 2013 and is subject to semi-annual borrowing base redeterminations.  For additional information about the credit facility, please refer to the Company’s prior press releases and filings with the SEC.

About Gastar Exploration

Gastar Exploration Ltd. is an exploration and production company focused on finding and developing natural gas assets in North America.  The Company pursues a strategy combining deep natural gas exploration and development with lower risk CBM and shale resource development.  The Company owns and operates exploration and development acreage in the deep Bossier gas play of East Texas and Marcellus Shale play in West Virginia and Pennsylvania.  Gastar’s CBM activities are conducted within the Powder River Basin of Wyoming.  For more information, visit our web site at www.gastar.com.

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