Also Announces its Borrowing Base is Set at $85 Million
HOUSTON, Nov. 21, 2016 /PRNewswire/ -- Gastar
Exploration Inc. (NYSE MKT: GST) ("Gastar" or the "Company")
announced the initial closing of the sale of certain non-core
assets located in northeast Canadian and southeast Kingfisher counties, Oklahoma. Gastar received $46.4 million in the initial closing and the
buyer has placed an additional $28.3
million into escrow. Release of escrow funds to Gastar
is subject to certain title curative and other
conditions.
Gastar also announced that its regularly scheduled November 2016 revolving credit facility borrowing
base redetermination resulted in a current borrowing base of
$85 million, down from $100 million. Gastar will repay the required
$15 million borrowing base reduction
from proceeds of the initial closing of the non-core acreage sale.
The next regularly scheduled borrowing base redetermination is to
occur in May 2017.
About Gastar Exploration
Gastar Exploration Inc. is a pure play Mid-Continent independent
energy company engaged in the exploration, development and
production of oil, condensate, natural gas and natural gas liquids.
Gastar's principal business activities include the identification,
acquisition, and subsequent exploration and development of oil and
natural gas properties with an emphasis on unconventional reserves,
such as shale resource plays. Gastar holds a concentrated acreage
position in what is believed to be the core of the STACK Play, an
area of central Oklahoma which is
home to multiple oil and natural gas-rich reservoirs including the
Meramec, Oswego, Osage,
Woodford and Hunton formations.
For more information, visit Gastar's website at www.gastar.com.
Forward Looking Statements
This news release includes "forward looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward looking statements give our current
expectations, opinion, belief or forecasts of future events and
performance. A statement identified by the use of forward
looking words including "may," "expects," "projects,"
"anticipates," "plans," "believes," "estimate," "will," "should,"
and certain of the other foregoing statements may be deemed
forward-looking statements. Although Gastar believes that the
expectations reflected in such forward-looking statements are
reasonable, these statements involve risks and uncertainties that
may cause actual future activities and results to be materially
different from those suggested or described in this news
release. These include the risk of receipt of the settlement
funds; and other risks described in Gastar's Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other filings with the
SEC, available at the SEC's website at www.sec.gov. By issuing
forward looking statements based on current expectations, opinions,
views or beliefs, Gastar has no obligation and, except as required
by law, is not undertaking any obligation, to update or revise
these statements or provide any other information relating to such
statements.
Contacts:
Gastar Exploration Inc.
J. Russell Porter, Chief Executive
Officer
713-739-1800 / rporter@gastar.com
Investor Relations Counsel:
Lisa Elliott, Dennardâ–ªLascar
Associates:
713-529-6600 / lelliott@DennardLascar.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gastar-exploration-announces-initial-closing-of-non-core-oklahoma-acreage-sale-300366410.html
SOURCE Gastar Exploration Inc.