Gastar to Receive Payment for Sale of Australian Assets
Gastar Exploration expects to receive approximately US $12.5 million in additional after-tax consideration for the 2009 sale of its interests in PEL 238, a coal seam natural gas project in New South Wales, Australia.
Year-end reserves for the PEL 238 project disclosed this week by project operator Eastern Star Gas exceeded the 2P target of 1.3 Tcf under the sale agreement. As a result, Gastar has earned an additional AU$20 million payment from the purchaser, affiliates of Santos Ltd. Based on recent foreign exchange rates and net of the 30% Australian tax due on the additional payment, net proceeds are expected to be approximately US $12.5 million. The company expects to receive the payment in cash in the near future pursuant to the sale agreement.
In addition to the reserve upside payment from Santos, Gastar also has the right to receive up to US $10 million in future cash payments from Eastern Star if certain previously negotiated production thresholds are achieved in the future.
"Proceeds from this upside payment for our former Australian assets will enhance our already strong liquidity position and will help enable us to execute our planned capital programs in the Marcellus Shale and in the East Texas Bossier play," said J. Russell Porter, Gastar President and Chief Executive Officer.
- Santos Seen Luring More Bids After Rejecting $7.2 Billion Offer (Nov 16)
- Australia's Santos Steps Up Effort To Avert LNG Export Curb (Aug 30)
- Australia Plans LNG Export Limits to Help Ease Local Price Pain (Apr 27)
Company: Gastar Exploration more info
- Gastar to Buy Back Chesapeake Stake (Apr 01)
- Gastar Pleased with Initial Marcellus Production Rates (Sep 21)
- Gastar Tests Marcellus Wells in West Virginia (Jul 28)
Company: Eastern Star Gas Ltd. more info
- Gastar to Receive Payment for Sale of Australian Assets (Feb 03)
- Gastar Exploration Inks Deal Eastern Star Gas (Jul 12)