Gastar Exploration Ltd. (NYSE MKT: GST) reports that Cubic Energy has exercised its option to further extend the closing deadline of the previously announced sale of Gastar's East Texas properties to August 30. Per the terms of the extension agreement, Cubic Energy has paid an additional deposit of $1.15 million to Gastar, bringing the total nonrefundable deposit received to $4.6 million, or 10% of the transaction's $46 million value.
Gastar is an independent energy company engaged in the exploration, development and production of oil, natural gas, condensate and natural gas liquids in the US. Its principal business activities include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves such as shale resource plays.
The company is currently pursuing the development of liquids-rich natural gas in the Marcellus Shale in West Virginia, and is also in the early stages of exploring and developing the Hunton Limestone horizontal oil play in Oklahoma. The company also holds producing natural gas acreage in the deep Bossier play in the Hilltop area of East Texas, but has entered into a definitive agreement to sell its East Texas assets.