Gastar Exploration (GST) signed a joint venture agreement with an affiliate of Atinum Partners Co., Ltd. on its acreage in the Marcellus Shale in West Virginia and Pennsylvania.
Gastar Exploration will convey to Atinum Marcellus I LLC a 21.43% interest in a 34,200 net acre position in the Marcellus Shale for consideration of $70 million. Atinum Marcellus I LLC will pay $30 million at closing and $40 million in future drilling costs to earn a 50% interest in the acreage.
Gastar Exploration will be the operator of the Marcellus Shale joint venture. The joint venture has established the following horizontal drilling program through 2012 in the Marcellus Shale:
2010 – 1 well
2011 – 12 wells
2012 – 24 wells
2013 – 24 wells
Atinum Partners Co., Ltd. is an investment company located in South Korea.