Gastar Exploration repays $10 million of revolver borrowings in January

By Tali Rackner

Norfolk, Va., Feb. 22 – Gastar Exploration Inc. said it repaid $10 million of the outstanding borrowings under its $200 million revolving credit facility in January, according to a press release.

The company currently has $190 million in borrowings outstanding under the revolver and cash and cash equivalents of about $35.5 million. The revolver was fully drawn in December.

It expects to further reduce its outstanding borrowings under the facility with the proceeds from the sale of the Appalachian Basin assets, which is expected to close on or before March 31, according to the release.

As previously announced, Gastar is currently in discussions with its bank lending group to amend its revolver to provide greater flexibility in future periods with respect to financial covenants.

“Gastar believes that it will be able to reach a satisfactory agreement with its lenders to amend such financial covenants on or before March 10 in a manner such that Gastar will reasonably expect to comply with its financial covenants over the next twelve months under the current commodity price outlook,” the release said.

Gastar is a Houston-based oil and gas exploration and production company.

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