Energy Prospectus

Gastar Exploration sells interest in non-core Oklalhoma acerage for $62 mln (GST) 2.76 : Co announces that it has signed a purchase and sale agreement with an undisclosed third party for the sale of Gastar's interests in ~76,000 net acres in Kingfisher and Canadian counties, Oklahoma for ~$62.0 mln in cash. The agreement also provides for the trading of certain acreage between Gastar and the third party to create more concentrated acreage blocks for both parties. The transaction is subject to customary closing conditions and is expect to close in mid-third quarter of 2013.

Co also announced that its partner in its original area of mutual interest in Oklahoma has elected to exercise its rights and acquire ~12,820 net acres that Gastar acquired from Chesapeake for a total payment of $12.1 mln. This purchase includes approximately 400 MBOE representing 50% of the PDP reserves associated with the wells acquired from Chesapeake that are geographically located inside the existing area of mutual interest.

Gastar Exploration (GST) announced recently that it sold 76,000 net acres in Kingfisher and Canadian counties for $62 million. This acreage had no production and was considered non-core for the Hunton play. This is remarkable because Gastar paid $74 million for 157,000 net acres in the area. So Gastar basically got 81,000 net acres and $32.4 million in proved reserves for net $12 million.

Additionally an AMI was exercised and Gastar sold 12,800 net acres and $4.5 million of the proved reserves to its partners in that AMI for $12.1 million. So net of the sale of the 76,000 net acres and net of the sale to Gastar's AMI partners, Gastar got 68,200 net acres and $28 million in proved reserves from Chesapeake (CHK) "for free".

Full Article: http://seekingalpha.com/article/1533032 ... urce=yahoo

I like GST and their pfd stock (GST-PA) is now rock solid. This deal should remove all doubts about Gastar's liquidity and their ability to carry out their drilling program. - Dan