Attached files
| file | filename |
|---|---|
| 8-K - GASTAR EXPLORATION, INC. | v200733_8k.htm |
| EX-10.1 - GASTAR EXPLORATION, INC. | v200733_ex10-1.htm |
 |
Exhibit
99.1
NEWS
RELEASE
Company
Contact:
Gastar
Exploration Ltd.
J.
Russell Porter, Chief Executive Officer
713-739-1800 / rporter@gastar.com
Investor
Relations Counsel:
Lisa
Elliott / Anne Pearson
DRG&L :
713-529-6600
|
|
For
Immediate Release
|
lelliott@drg-l.com /
apearson@drg-l.com
|
Gastar
Exploration Announces Litigation Settlement Agreement
HOUSTON,
November 1, 2010 – Gastar Exploration Ltd. (“Gastar”) (NYSE Amex: GST) announced
today that it has entered into a Settlement Agreement effective November 1, 2010
providing for the settlement of the seven In re ClassicStar Mare Lease
Litigation matters described in Note 13 to the financial statements
included in Gastar’s Form 10-Q for the quarter ended June 30, 2010.
The
Settlement Agreement reflects the definitive terms of the settlement, contingent
only upon approval of the bankruptcy court overseeing the Chapter 7 liquidation
of ClassicStar, LLC, the United States Bankruptcy Court for the Eastern District
of Kentucky. It is anticipated that the Settlement Agreement will be
presented to the bankruptcy court for approval on or after November 19,
2010. If the Settlement Agreement is approved by the bankruptcy
court as proposed, Gastar will pay to the plaintiffs an aggregate of $21.15
million in cash, including an initial $18.0 million payment to be paid within 10
business days of the approval date and the remaining $3.15 million in 16 monthly
payments, the first of which will be $150,000 and the next 15 of which will be
$200,000 each, in exchange for dismissal of all existing and potential future
claims of the plaintiffs in all seven cases filed against
Gastar. Under the Settlement Agreement, Gastar admits no liability in
connection with the seven lawsuits. While it denies the allegations
made by the plaintiffs in the cases, Gastar entered into the settlement to avoid
the risk and expense of continued litigation.
Commenting
on the settlement of the litigation, J. Russell Porter, Gastar’s President and
Chief Executive Officer, stated,” The resolution of this litigation was
important to remove the risk of an adverse trial outcome, remove the on-going
cost of defending our position and remove an impediment to Gastar moving forward
with potential corporate actions. Gastar is well positioned with
attractive assets and a strong balance sheet that will allow us to take
advantage of opportunities created by the current environment.”
About
Gastar Exploration
Gastar
Exploration Ltd. is an exploration and production company focused on finding and
developing natural gas assets in North America. The Company pursues a
strategy combining deep natural gas exploration and development with lower risk
shale resource and CBM development. The Company owns and operates
exploration and development acreage in the deep Bossier gas play of East Texas
and Marcellus Shale play in West Virginia and Pennsylvania. Gastar’s
CBM activities are conducted within the Powder River Basin of
Wyoming. For more information, visit our web site at www.gastar.com.
Safe
Harbor Statement and Disclaimer
This news
release includes “forward looking statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward looking statements give our
current expectations, opinion, belief or forecasts of future events and
performance. A statement identified by the use of forward looking
words including “may”, “expects”, “projects”, “anticipates”, “plans”,
“believes”, “estimate”, “will”, “should”, and certain of the other foregoing
statements may be deemed forward-looking statements. Although Gastar
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. These include risk
inherent in natural gas and oil drilling and production activities, including
risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or
unexpected formation pressures, environmental hazards, and other operating and
production risks, which may temporarily or permanently reduce production or
cause initial production or test results to not be indicative of future well
performance or delay the timing of sales or completion of drilling operations;
risks with respect to natural gas and oil prices, a material decline in which
could cause Gastar to delay or suspend planned drilling operations or reduce
production levels; risks relating to the availability of capital to fund
drilling operations that can be adversely affected by adverse drilling results,
production declines and declines in natural gas and oil prices; risks relating
to unexpected adverse developments in the status of properties; risks relating
to the absence or delay in receipt of government approvals or third party
consents; and other risks described in Gastar’s Annual Report on Form 10-K and
other filings with the SEC, available at the SEC’s website at
www.sec.gov. By issuing forward looking statements based on current
expectations, opinions, views or beliefs, Gastar has no obligation and, except
as required by law, is not undertaking any obligation, to update or revise these
statements or provide any other information relating to such
statements.
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