Gastar Exploration announced recently that they are partnering up with Atinum Partners Co., Ltd. Which is an investment firm located in the Republic of Korea. Atinum will initially acquire a 21.43% interest in Gastar approximately 34,200 net acres in West Virginia and Pennsylvania and certain shallow producing conventional wells in the Marcellus play for roughly $70 million. Atinum will pay $30 million cash and the remaining $40 million in drilling carry. When the drilling carry is complete, Atinum will own a 50% interest in aforementioned 34,200 net acres in which Gastar will act as operator.
Under the new joint venture, Gastar plans to drill one horizontal Marcellus well in 2010, a minimum of 12 horizontal wells in 2011 and 24 horizontal wells in 2012 and 2013. Atinum will fund 87.5% of the drilling, completion and infrastructure costs until the $40 million drilling carry is met.
An area of mutual interest will be established in Ohio, New York, West Virginia, and Pennsylvania in which Gastar will act as operator and will offer Atinum a 50/50 split of future lease acquisitions. Atinum has also agreed to pay Gastar on an annual basis an amount equal to 10% of lease bonuses and third party leasing costs up to $20 million and 5% of the costs on activities above $20 million.
The following map has Gastar drilling permits in the Marcellus play in West Virginia and Pennsylvania.
To learn more visit the Acquisition and Divestitures folder in the Marcellus Unconventional Update in DI’s DNA.
Latest posts by Enverus (see all)
- An OPEC Cut Just Got Closer - December 1, 2021
- Enverus Named a Top Workplace in Austin and Houston - November 22, 2021
- Oil & Gas’ Latest Rally Encourages Growth Within Cash Flow - November 10, 2021