Boston, MA 09/22/2014 (wallstreetpr) – According to reports, Gastar Exploration Inc (NYSEMKT:GST) has decided to price its 17 million shares of common stock. The main reason behind this share pricing as per revealed by the company is nothing but to arrange funding for its drilling program.
Insights of pricing:
Gastar Exploration Inc (NYSEMKT:GST) has finalized the pricing at $6.25 per share. It has announced that apart from normal 17 million shares of common stock, it will also offer 2.55 million shares to underwriters, although the window for these shares will be opened for maximum 30 days. GST will close all the offerings by September 24, 2014, depending upon customary closing conditions. After this date, no proposal will be accepted by the company.
Expected proceedings from the share offering:
Gastar Exploration Inc (NYSEMKT:GST) is expecting around $101.2 million worth proceedings from this share offering after deducting all the expenses and fees. It will be used to meet general corporate purposes and repay debt under revolving credit facility. The company runs several drilling and development programs; therefore, this share offering will be used to fund all such activities. GST mainly works in areas like development, exploration and production of natural gas and crude oil. Recently on September 15, 2014 it announced that total investments during 2015 would be around $257.3 million, out of which $222.7 million worth investment will be made in the completion, drilling and infrastructure segment. As per the estimation, GST will produce average 5.5–18 thousand barrels of oil equivalent per day during the next year.
Experts have high hopes from Gastar Exploration Inc (NYSEMKT:GST) in coming months and expect it to take production on the next level. Currently it has Zacks Rank #3 (Hold), which means that it will perform up to expectations in broader equity market over the next three months. No one from the management of the company was available immediately in order to comment.