Gastar Sells Powder River Basin Acreage
Gastar Exploration has accepted an offer from an undisclosed purchaser for the sale of it's interest in the Culp Draw and Table Mountain areas of the Powder River Basin in Wyoming. Gastar owns approximately 3,033 net acres of federal leases in these areas. The terms of the offer will result in the payment to Gastar of approximately $2,400,000 in cash and Gastar will retain a small overriding royalty interest. The offer is dependent upon the purchaser's review of title information as well as the execution of a mutually acceptable Purchase and Sale Agreement. The transaction is expected to close in approximately 45 days.
Commenting on the sale, J. Russell Porter, Gastar's COO, said, "We are pleased to be able to monetize these partial working interest leases. Along with the funds from our previously announced Powder River Basin joint venture, this transaction makes additional funds available for our planned activities including our projects in the Deep Bossier Sands play in East Texas, the deep Trenton-Black River and Devonian Shale plays in West Virginia and our Australian CBM plays in New South Wales (PEL 238) and Victoria (Gippsland Basin)."
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