Sale provides liquidity to pursue East Texas, Marcellus drilling
Gastar Exploration Ltd. has sold its majority interest in the Hilltop Resort Gathering System to US Infrastructure LP (USI) for roughly $21.7 million. Signing of definitive agreements and closing of the sale occurred simultaneously.
The Hilltop Resort Gathering System is comprised of 20 miles of natural gas pipeline connected to 24 Gastar-operated wells, which produce from the middle and lower Bossier and Knowles formations in East Texas.
"The sale of our stake in the Hilltop system provides an attractive return on our investment and additional liquidity to pursue our drilling plans in East Texas and the Marcellus Shale while maintaining a very low level of leverage," said J. Russell Porter, Gastar's chairman, CEO and president. "We have a longstanding and successful relationship with the principals of USI, and we look forward to continuing to build on this strategic affiliation as they become our new gathering partner."
Gastar Exploration Ltd. is an exploration and production company focused on finding and developing natural gas assets in North America.
