Pursuant to the agreement, Gastar has assigned to Atinum an initial 21.43% interest in all of its existing Marcellus Shale undeveloped lease acreage in West Virginia and Pennsylvania, along with certain producing shallow conventional wells.
Upon closing of the transaction, Atinum has paid Gastar $30m in cash and now owns a 21.43% interest in the 34,200 net acres of Marcellus Shale rights previously owned by Gastar.
Also under the terms of the agreement, Atinum has committed to an additional $40m in the form of a drilling carry to Gastar by funding 75% of Gastar’s 50% share of drilling completion and infrastructure costs in addition to its own 50% share of these same costs.
Upon completion of the funding of the $40m drilling carry, Atinum will own a 50% interest in the acreage, making the transaction valued at approximately $70m.
