Gastar Exploration Inc. (GST) said July 6 it completed the sale of certain noncore assets in Oklahoma to Oklahoma Energy Acquisitions LP, whose general partner is Alta Mesa GP LLC, for a total of $46.1 million of net proceeds.
The assets include 38 gross (16.7 net) wells on about 29,300 gross (19,000 net) acres in Kingfisher County. The wells produced an average of about 170 net barrels of oil equivalent per day (boe/d) per day, 57% natural gas, during the first quarter of 2015. At year-end 2014, proved reserves were 379,000 boe, of which 63% was natural gas.
Gastar, based in Houston, said it might use the sale proceeds for an initial operated test of the Meramec Shale potential in the Stack Play on its Midcontinent acreage later this year. Proceeds from the sale are also earmarked for reduction the company's debt under its revolving credit facility and other general corporate purposes.
J. Russell Porter, Gastar's president and CEO, said in the release, "We are pleased to close this transaction as it further strengthens our balance sheet and liquidity position to execute our capital program."
The sale was previously announced on May 6 and has an effective date of April 1.
Recommended Reading
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
NGL Growth Leads Enterprise Product Partners to Strong Fourth Quarter
2024-02-02 - Enterprise Product Partners executives are still waiting to receive final federal approval to go ahead with the company’s Sea Port Terminal Project.
Air Liquide Eyes More Investments as Backlog Grows to $4.8B
2024-02-22 - Air Liquide reported a net profit of €3.08 billion ($US3.33 billion) for 2023, up more than 11% compared to 2022.
SBM Offshore Announces CEO Departure, Succession
2024-01-24 - SBM Offshore’s Bruno Chabas is stepping down as CEO; the board has appointed Øivind Tangen as his successor, effective in April.
Flame Acquisition Holders Approve Merger with Sable Offshore
2024-02-14 - The business combination among Flame Acquisition Corp., Sable Offshore Holdings and Sable Offshore Corp. will be renamed Sable Offshore Corp.