HOUSTON, Feb. 22, 2017 /PRNewswire/ -- Gastar Exploration
Inc. (NYSE MKT: GST) ("Gastar") announced today that it has
conditionally called for redemption of all $325 million outstanding principal of its 8-5/8%
Senior Secured Notes Due 2018 (CUSIP No. 36729W AA1) (the
"Notes") for redemption on March 24,
2017 (the "Redemption Date") at a redemption price of
102.156% of the principal amount of the Notes (the "Redemption
Price"), plus accrued and unpaid interest to, but not including,
the Redemption Date. The redemption of the Notes is conditioned
upon the completion, on or before March 21,
2017, of the financings contemplated in the previously
announced Securities Purchase Agreement dated as of February 16, 2017, by and among Gastar and
certain purchasers affiliated with Ares Management, L.P. Gastar expects the financings will be
completed by the end of this month. Gastar will publicly announce
and notify the holders and the indenture trustee for the Notes if
the foregoing condition is not satisfied, whereupon the redemption
will be revoked.
About Gastar
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 risks inherent in oil and natural
gas drilling and production activities, including risks with
respect to continued low or further declining prices for oil and
natural gas that could result in further downward revisions to the
value of proved reserves or otherwise cause Gastar to further delay
or suspend planned drilling and completion operations or reduce
production levels, which would adversely impact cash flow; risks
relating to the availability of capital to fund drilling operations
that can be adversely affected by adverse drilling results,
production declines and continued low or further declining prices
for oil and natural gas; risks regarding Gastar's ability to meet
financial covenants under its indenture or credit agreements or the
ability to obtain amendments or waivers to effect such compliance;
risks of fire, explosion, blowouts, pipe failure, casing collapse,
unusual or unexpected formation pressures, environmental hazards,
and other operating and production risks, which may temporarily or
permanently reduce production or cause initial production or test
results to not be indicative of future well performance or delay
the timing of sales or completion of drilling operations; delays in
receipt of drilling permits; risks relating to unexpected adverse
developments in the status of properties; borrowing base
redeterminations by Gastar's banks; risks relating to the absence
or delay in receipt of government approvals or third-party
consents; risks relating to Gastar's ability to realize the
anticipated benefits from acquired assets; and other risks
described in Gastar's Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q and other filings with the U.S. Securities and
Exchange Commission ("SEC"), available at the SEC's website at
www.sec.gov. Gastar's actual sales production
rates can vary considerably from tested initial production rates
depending upon completion and production techniques and its primary
areas of operations are subject to natural steep decline rates. 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.
Michael A. Gerlich, Chief Financial
Officer
713-739-1800 / mgerlich@gastar.com
Investor Relations Counsel:
Lisa Elliott /
lelliott@DennardLascar.com
Dennard-Lascar Associates: 713-529-6600
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SOURCE Gastar Exploration Inc.