Document:

Exhibit 10.1

                              [GASTAR LETTERHEAD]

                                  July 5, 2007

Jeffrey C. Pettit
4215 Spring Palms Court
Kingwood, TX  77345

RE:   Offer of Employment

Dear Jeff:

Per our discussions, this letter shall serve as an offer of employment from
Gastar Exploration Texas, L.P. ("GET," a wholly-owned subsidiary of Gastar
Exploration, Ltd. "Gastar"). Your employment will be full-time and you will
dedicate your best efforts to your employment.

Effective Date:   August 21, 2007

Title:            Vice President & Chief Operating Officer

Base Salary:      $285,000 per year.

Bonus:            You will be eligible for inclusion in a  discretionary
                  Annual  Bonus  program for GET  employees  in any year
                  that  such  general  bonuses  are paid.  For  calendar
                  year 2007,  you will receive a guaranteed  bonus equal
                  to 20% of your base annual salary  (pro-rated  for the
                  time period  between the  Effective  Date and December
                  31, 2007).

Option Position:  Subject to the approval of Gastar's Board of
                  Directors, you will receive 112,500 restricted common shares
                  of Gastar valued on the Effective Date or the first date
                  thereafter that such a grant and resolution may be approved by
                  the Gastar Board of Directors. The initial restricted shares
                  will vest 33% each year starting with year two through year
                  four. You will be eligible for additional grants on a
                  subjective basis as a part of an annual compensation and
                  performance review. This benefit is governed by a separate
                  agreement, which shall control.

<PAGE>

Vacation:         You will receive four weeks paid  vacation  (pro-rated
                  for the Effective  Date) during calendar 2007 and four
                  weeks  paid  vacation  annually  thereafter.  If  your
                  employment is terminated  for cause,  you will forfeit
                  any  unused  vacation  for the  then-current  calendar
                  year.  If  your   employment  is  terminated   without
                  cause,  you will be paid any unused  vacation  for the
                  then-current year.

Expense Account:  GET shall reimburse you for ordinary and reasonable
                  business expenses incurred in the performance of your
                  responsibilities as Vice President - Chief Operating Officer
                  as per the terms of existing policies. All expenses will be
                  submitted to the undersigned and will be paid upon approval of
                  the undersigned.

Medical Coverage: You will be eligible for participation in the
                  medical and dental insurance programs offered to GET
                  employees, subject to the eligibility and participation
                  provisions of such programs. As with all employee benefits,
                  your employer reserves the right in its discretion to add to,
                  delete from or otherwise modify its compensation and benefit
                  programs.

Termination:      You or GET may terminate your  employment at any time,
                  with  or  without   cause.   If  your   employment  is
                  terminated by GET for cause,  you will not be eligible
                  for  severance  or  other   compensation   except  for
                  accrued annual salary to the date of  termination.  If
                  your  employment  is  terminated  for cause,  you also
                  will not be  eligible  to receive  any options for the
                  purchase of Gastar common stock or  restricted  Gastar
                  common shares.

                  If your employment is terminated by GET without cause during
                  the first two years of employment, you will receive one (1.0)
                  times your annual salary in severance payments, plus vested
                  options or restricted shares initially granted herein or
                  granted prior to termination. If your employment is terminated
                  by GET without cause after the second year of employment you
                  will receive one and one-half (1.5) times your annual salary
                  plus options or restricted shares vested prior to the date of
                  termination. Any severance or other compensation will be paid
                  over the period equal to the compensation amount, i.e. 1.0
                  times Annual Salary would be paid over twelve months.

                  "Cause" means any of the following: (1) willful disobedience
                  of reasonable and ethical directives of the Company; (2)
                  conviction of a felony or a crime involving moral turpitude;
                  (3) actions in competition with the Company or in aid of a
                  competitor; (4) misconduct or material neglect of your duties;

<PAGE>

Disability:       If you  become  disabled,  and are  unable,  in  GET's
                  opinion,  to perform all duties of your job,  and that
                  condition  exists for more than ninety (90) days, your
                  employment  shall be considered  terminated,  with any
                  severance   payments   to  be  made   solely   at  the
                  discretion  of GET,  which  shall also have the right,
                  not to pay any severance.  This  disability  statement
                  will not apply if  employee  is  injured on the job or
                  while  performing  job  duties for  company  including
                  travel for company.

Confidentiality:  As a condition of your continued employment, you must sign the
                  attached Employee Technology Agreement.

Resolution
of Disputes:      If any disputes  between you and the Company cannot be
                  resolved  amicably,  such dispute  (including  but not
                  limited to any disputes  relating to your  employment,
                  termination  of your  employment or any claim alleging
                  employment  discrimination),   shall  be  resolved  by
                  binding  arbitration.  Such arbitration  shall be held
                  before a single  arbitrator in Harris  County,  Texas,
                  and   conducted   under  the  Rules  of  the  American
                  Arbitration   Association.   The   decision   of   the
                  arbitrator  shall be final and binding.  Any claim for
                  arbitration  must be filed in writing within  one-year
                  of the event(s) giving rise to the dispute.

Assignment and
Termination of
Agreement:        This   agreement   may  be  assigned  by  GET  to  any
                  affiliated  company including  Gastar.  This agreement
                  may  be  terminated  by  either  party  prior  to  the
                  Effective Date.

Please sign below to indicate your confirmation of these employment terms.

Sincerely,

/s/  J. RUSSELL PORTER

J. Russell Porter
Authorized Officer
Gastar Exploration Texas, L.P.

cc:   Michael Gerlich

AGREED TO AND ACCEPTED
This 5th day of July, 2007.

/s/ JEFFERY C. PETTIT
------------------------------
Jeffrey C. Pettit

<PAGE>

                          EMPLOYEE TECHNOLOGY AGREEMENT

Employee: Jeffrey C. Pettit Company: Gastar Exploration Texas, L.P.
Date: 07/05/07

I understand and agree that the Company has made significant and extensive
investments in time, materials, and money to develop confidential and
proprietary information and trade secrets which provide the Company with a
business advantage. In consideration for my continued employment in any capacity
with the Company, and as consideration for the salary and benefits paid for my
services during my employment, I agree as follows:

1.   Confidential Information. Except as required by my work for the Company,
     during and after my employment with the Company, I agree to not use or
     disclose to others any of the Company's confidential and proprietary
     information including, but not limited to, production methods and
     processes, financial data, geological data, geophysical data, leasehold
     data, customer information (including names, needs, and contacts), computer
     data and software, work-in-process, research-and-development, vendors, and
     technological developments.

2.   Materials Developed for Company. I agree that all original materials
     developed by me, alone or in concert with others, either on Company time,
     through the use of Company materials, or relating to the Company's business
     (including, but not limited to, computer programs, listings, design
     specifications, flow charts and documentation), are works made for hire
     under the United States Copyright Laws and are the sole and exclusive
     property of Company. I further agree that this Agreement operates as an
     irrevocable assignment to Company by me of all rights related to the
     copyrights in the developed materials.

3.   Removal or Duplication of Company Property. Except as required by my work
     for the Company, I agree that I will not remove any Company property from
     the Company's premises or duplicate any of the Company's property, whether
     by photocopy, computer, photograph, videotape, audio tape, or otherwise.

4.   Return of Materials upon Termination. Upon termination of employment with
     the Company, I agree to immediately return to the Company all of the
     Company's property including, but not limited to, keys, access cards,
     identification badges, manuals, files, tools, blueprints, financial
     documents, records of any kind, computers, computer disks, files and
     printouts, and any other materials or property of the Company.

5.   Scope of this Agreement; Changes. I understand that this Agreement replaces
     all prior agreements or understandings, oral or written, covering the
     subject matter of this Agreement.

I also understand that this Agreement may only be changed in a writing signed by
me and the President of the Company. This Agreement applies to and benefits not
only to the Company, but also to any companies affiliated with, or successor to,
the Company.

GASTAR EXPLORATION TEXAS, L.P.      JEFFREY C. PETTIT

By:  /s/  J. RUSSELL PORTER         /s/ JEFFERY C. PETTIT
     ------------------------------ ------------------------------
     J. Russell Porter
     Its Authorized OfficerExhibit 10.2

                                   SCHEDULE OF
                       NON-EMPLOYEE DIRECTOR COMPENSATION
                           FOR 2007 - 2008 BOARD TERM

o    Board membership        $50,000 restricted stock grant with a 1 year
                             vesting period.

o    Board Chairman          $10,000 restricted stock grant with a 1 year
                             vesting period and $24,000 per year (paid
                             $6,000 per quarter) cash compensation.

o    Corporate Governance    $10,000 per year (paid $2,500/quarter)
     Committee Members       cash compensation.

o    Corporate Governance    $22,500 per year (paid $5,625/quarter)
     Committee Chairman      cash compensation.

o    Audit Committee         $10,000 per year (paid $2,500/quarter)
     Members                 cash compensation.

o    Audit Committee         $20,000 per year (paid $5,000/quarter)
     Chairman                cash compensation.

o    Compensation            $4,000 per year (paid $1,000/quarter) cash
     Committee Members       compensation.

o    Compensation            $10,000 per year (paid $2,500/quarter)
     Committee Chairman      cash compensation.

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