Gastar Exploration Announces Underwriters' Exercise of Over-Allotment Option

Dec 10, 2010, 06:00 ET from Gastar Exploration Ltd.

HOUSTON, Dec. 10, 2010 /PRNewswire-FirstCall/ -- Gastar Exploration Ltd. (NYSE Amex: GST) today announced that the underwriters of its previously announced underwritten public offering of common shares have exercised in full their option to purchase an additional 1,800,000 common shares of the Company's common stock at a public offering price of $4.00 per share. As a result, the Company will issue a total of 13,800,000 common shares, and the aggregate net proceeds from this offering will be approximately $52.5 million after deducting underwriting discounts and estimated offering expenses. The Company expects to issue and deliver all 13,800,000 common shares on December 13, 2010, subject to customary closing conditions.

Johnson Rice & Company L.L.C., Pritchard Capital Partners, LLC and Tudor, Pickering, Holt & Co. are acting as joint book-running managers of the offering and BMO Capital Markets and IBERIA Capital Partners, L.L.C. are acting as co-managers.

The offering is being made only by means of a prospectus supplement and accompanying base prospectus, which have been filed with the SEC. Copies of the prospectus supplement and accompanying base prospectus relating to the offering, when available, may be obtained from:

Johnson Rice & Company L.L.C.

639 Loyola Avenue, Suite 2775

New Orleans, LA 70113

Telephone: (504) 525-3767

Pritchard Capital Partners, LLC

3190 Fairview Park Drive

Suite 550

Falls Church, VA 22042

Telephone: (703) 891-6080

Tudor, Pickering, Holt & Co.

1111 Bagby Street, Suite 5100

Houston, TX 77002

Telephone: (713) 333-7132

An electronic copy of the prospectus supplement and accompanying base prospectus may also be obtained at no charge at the SEC website at www.sec.gov.

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 exploration and production company focused on finding and developing oil and natural gas assets in North America. The Company currently pursues a strategy combining deep natural gas exploration and development with lower risk shale resource 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. The Company also owns coalbed methane properties located in the Powder River Basin of Wyoming.

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 has 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 / rporter@gastar.com

Investor Relations Counsel:  

Lisa Elliott / Anne Pearson

DRG&L  : 713-529-6600

lelliott@drg-l.com / apearson@drg-l.com

SOURCE Gastar Exploration Ltd.



RELATED LINKS

http://www.gastar.com