Gastar Exploration USA, a subsidiary of Gastar Exploration Ltd. (NYSE: GST), priced the offer of US $200 million aggregate principal amount of senior secured notes due 2018 in a private placement to eligible purchasers at par.

Net proceeds will be used to (i) finance the purchase price for its separately announced pending acquisition of Mid-Continent assets from Chesapeake Energy Corp. (NYSE: CHK), repurchase some 6.8 million shares of the parent's common stock held by Chesapeake and settle all current litigation with Chesapeake, (ii) repay in full outstanding borrowings under its existing revolving credit facility, and (iii) for general corporate purposes.

Gastar Exploration Ltd. is an independent energy company engaged in the exploration, development, and production of natural gas, condensate, oil, and NGLs in the US. The company is based in Houston.