Gastar Exploration Ltd. (NYSE MKT: GST) ("Gastar") announced today that it has closed its previously announced acquisition of proven reserves and undeveloped leasehold interests in Kingfisher and Canadian Counties, Oklahoma from Chesapeake Energy Corporation ("Chesapeake"), repurchase of 6,781,768 outstanding shares of the Company's common stock currently held by Chesapeake and settlement of all litigation. The purchase price of $84 million, effective October 1, 2012, is subject to adjustment for customary due diligence items.
The Mid-Continent acquisition, share repurchase and litigation settlement were funded with proceeds from the $200 million private placement of debt securities closed on May 15, 2013.
Effective today, Michael McCown will assume the position of Senior Vice President and Chief Operating Officer and will be responsible for operations in the Marcellus Shale and Hunton Limestone areas. In addition, Michael Gerlich will continue as Gastar's Chief Financial Officer and has been promoted to Senior Vice President.
J. Russell Porter, Gastar's President & Chief Executive Officer, commented on the announcements, "The acquisition of the additional interests in Oklahoma significantly enhances Gastar's position in the Hunton Limestone oil play and increases our potential resource exposure to over 100 million barrels equivalent. Gastar is now positioned in two plays, the Marcellus Shale and Hunton Limestone, that we believe provide the opportunity for drill repeatable wells that generate attractive returns. Gastar will open an office in Oklahoma City in July and plans to initiate operated Hunton activity during the third quarter."
"After helping assemble our Marcellus technical team and overseeing the successful initial development of Gastar's Marcellus Shale assets, Mike McCown has agreed to take on an expanded corporate role as COO. Michael Gerlich's promotion is in recognition of his tenure and continued contributions to the company."