Gastar Exploration Ltd (GST) announced that it sold all of its interest in exploration licenses 238, 433 and 434 in New South Wales, Australia for $240 million. The company will net $175 million after paying taxes.
Gastar Exploration plans to use the proceeds to immediately repay a $25 million secured term loan and use $30 million to redeem a convertible subordinated debenture when they mature in November 2009. The company will also use the proceeds to repurchase part of the company’s $100 million 12.75% senior secured note issue.
Gastar Exploration can now focus on its acreage in the Marcellus Shale, where the company has 42,000 net acres under lease in West Virginia and Pennsylvania. The company is using a net unrisked resource potential of 1.7 Tcfe of natural gas on its acreage in the Marcellus Shale. ___________________________________________________________________
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