Gastar Exploration Inc. (GST) entered a purchase and sale agreement to sell certain noncore assets in Oklahoma for about $46.2 million, the company said May 6. The assets will be sold to a private third party, the company added.
There are about 29,300 gross (19,000 net) acres in Kingfisher County. As of March 31, the acres produced, on average, about 170 barrels of oil equivalent per day (boe/d) from 38 gross (16.7 net) wells, 57% natural gas.
At year-end 2014, the acreage had 379Mboe in proved reserves, 63% natural gas.
Proceeds will reduce the outstanding balance under Gastar’s revolving credit facility, and support general corporate purposes. These include an initial operated test of the Meramec Shale potential on a portion of its holdings later in 2015.
The transaction is scheduled to close June 22. The property sale’s effective date is April 1.
Houston-based Gastar Exploration Inc. develops and produces oil, natural gas and NGL in the Woodford, Meramec, Marcellus and Utica.
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