HOUSTON, May 12, 2016 /PRNewswire/ -- Gastar Exploration
Inc. ("Gastar") (NYSE MKT: GST) announced today that it has priced
a public offering of 50,000,000 shares of its common stock at a
price to the public of $0.95 per
share pursuant to an effective shelf registration statement
previously filed with the Securities and Exchange Commission (the
"SEC"). The offering was upsized from the previously announced
offering of 40,000,000 shares of common stock. Gastar has also
granted the underwriters a 30-day option to purchase up to an
additional 7,500,000 shares of common stock. Gastar expects
to receive net proceeds of approximately $44.6 million (or approximately $51.4 million if the underwriters exercise their
option to purchase additional shares), after deducting estimated
fees and expenses (including underwriter discounts and
commissions).
Gastar intends to use the net proceeds from the offering for
general corporate purposes, including funding an expanded drilling
program on its STACK Play acreage in Oklahoma. Gastar expects
the offering to close on May 17,
2016, subject to customary closing conditions.
Seaport Global Securities LLC and Johnson Rice & Company L.L.C. are acting as
joint book-running managers for the offering.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities described herein,
nor shall there be any sale of these securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such jurisdiction. The offering may be made only by means
of a prospectus supplement and accompanying base prospectus meeting
the requirements of Section 10 of the Securities Act of 1933, as
amended.
A copy of the prospectus supplement and accompanying base
prospectus relating to these securities may be obtained, when
available, from:
Seaport Global Securities LLC
360 Madison Avenue, 21st Floor
New York, NY 10117
email: amcadams@seaportglobal.com
telephone: 646-264-5629
Johnson Rice & Company
L.L.C.
639 Loyola Avenue, Suite 2775
New Orleans, Louisiana 70113
email: ecm@jrco.com
telephone: (800) 443-5924
You may also obtain these documents at no charge when they are
available by visiting EDGAR on the SEC's website at
www.sec.gov.
About Gastar Exploration
Gastar Exploration Inc. is an independent energy company engaged
in the exploration, development and production of oil, condensate,
natural gas and natural gas liquids in the Mid-Continent.
Safe Harbor Statement and Disclaimer
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 natural gas and oil drilling and
production activities, including risks with respect to continued
low or further declining prices for natural gas and
oil 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 natural gas and oil; 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 our banks; risks relating to the absence or
delay in receipt of government approvals or third-party consents;
risks relating to our ability to integrate acquired assets with
ours and to realize the anticipated benefits from such
acquisitions; and other risks described in Gastar's
Annual Report on Form 10-K, Quarterly Report on Form
10-Q and other filings with the SEC, available
at the SEC's website at
www.sec.gov. Our actual sales production
rates can vary considerably from tested initial production rates
depending upon completion and production techniques and our 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.
J. Russell
Porter, Chief Executive Officer
713-739-1800
/ rporter@gastar.com
Investor Relations Counsel:
Lisa Elliott /
lelliott@DennardLascar.com
Anne Pearson /
apearson@DennardLascar.com
Dennard-Lascar
Associates: 713-529-6600
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SOURCE Gastar Exploration Inc.