Closing of the transaction is expected to take place in mid-December of this year.
Prior to executing the agreement, Gastar obtained an exclusive option on the leasehold with the right to conduct operations to test the Marcellus Shale potential on the properties to be acquired.
Gastar deepened an existing well to the Marcellus Shale and tested that vertical well at over 1.1mmcfd from the lower Marcellus.
The company also re-completed another existing vertical well in the Marcellus and tested that well at rates as high as 1mmcfd from the lower Marcellus formation.
The assets to be acquired include approximately 59,000 net acres of Marcellus Shale leasehold, a gathering system consisting of 41 miles of pipeline, a salt water disposal well and seven producing conventional wells making approximately 500mcfd.
