Gastar Exploration Prices 36,500,000 Common Shares Offering
May 19 2009 - 5:46PM
PR Newswire (US)
HOUSTON, May 19 /PRNewswire-FirstCall/ -- Gastar Exploration Ltd.
(the "Company") (NYSE Amex: GST and TSX: YGA) today announced that
it has priced its underwritten public offering of 36,500,000 common
shares to purchasers in the United States at a public offering
price of $0.40 per share. Johnson Rice & Company L.L.C. is
acting as the sole underwriter of the offering. The Company has
also granted the underwriter a 30-day option to purchase up to an
additional 5,475,000 common shares on the same terms and conditions
to cover over-allotments, if any. The offering is expected to
settle and close on May 22, 2009, subject to customary closing
conditions. The aggregate net proceeds to the Company from the
offering will be approximately $13,800,000, after deducting
underwriting discounts and commissions and estimated offering
expenses, and exclusive of any proceeds attributable to the
underwriter's possible exercise of the over-allotment option. The
Company intends to use the net proceeds from the offering for
working capital and general corporate purposes, including for its
announced 2009 capital expenditures. Copies of the prospectus
supplement and accompanying base prospectus relating to this
offering may be obtained from Johnson Rice & Company L.L.C., at
639 Loyola Avenue, Suite 2775, New Orleans, LA 70113, or by phone
at (504) 525-3767. An electronic copy of the prospectus supplement
and accompanying base prospectus may also be obtained at no charge
at the U.S. Securities and Exchange Commission's website at
http://www.sec.gov/. The shelf registration statement on Form S-3
relating to the foregoing was declared effective by the U.S.
Securities and Exchange Commission on April 27, 2007. This news
release does not constitute an offer to sell or a solicitation of
an offer to buy the securities described herein, nor shall there be
any sale of these securities in any state or jurisdiction in which
such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. The offering may be made only by means of a
prospectus and related prospectus supplement. About Gastar
Exploration Gastar Exploration Ltd. is an independent energy and
production company focused on finding and developing natural gas
assets in North America and Australia. The Company pursues a
strategy combining deep natural gas exploration and development
with lower risk CBM and shale resource development. The Company
owns and operates exploration and development acreage in the deep
Bossier gas play of East Texas and the Marcellus Shale play in West
Virginia and Pennsylvania. The Company's CBM activities are
conducted within the Powder River Basin of Wyoming and concentrated
on more than 6.0 million gross acres controlled by the Company and
its joint development partners in Australia's Gunnedah Basin,
located in New South Wales. Safe Harbor Statement and Disclaimer
This news release includes "forward looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Act of 1934. A statement identified by the
words "expects", "projects", "plans", and certain of the other
foregoing statements may be deemed forward-looking statements.
Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, these statements
involve risks and uncertainties that may cause actual future
activities and results to be materially different from those
suggested or described in this news release. The NYSE Amex and
Toronto Stock Exchange have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Company Contact: Gastar Exploration Ltd. J. Russell Porter, Chief
Executive Officer 713-739-1800 / Investor Relations Counsel: Lisa
Elliott / Anne Pearson DRG&E : 713-529-6600 / DATASOURCE:
Gastar Exploration Ltd. CONTACT: J. Russell Porter, Chief Executive
Officer of Gastar Exploration Ltd., +1-713-739-1800, ; or Investor
Relations, Lisa Elliott, or Anne Pearson, , both of DRG&E,
+1-713-529-6600, for Gastar Exploration Ltd.
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