To acquire assets in New South Wales, including 35% WI in PPL3 containing Coonarah Field.
Gastar Exploration Ltd., Houston, (Amex: GST; Toronto: YGA) plans to acquire assets in New South Wales, Australia, from its joint venture partner, Eastern Star Gas Ltd., (Australia: ESG) for US$3.25 million. The primary asset is a 35% interest in the Wilga Park Power Station, and includes a 35% working interest in Petroleum Production License 3 (PPL3), which contains the Coonarah gas field. Gastar will fund the expansion of the power station from 4 megawatts to a 7-megawatt capacity, and the construction of a pipleline to deliver gas from the field to the station, for US$3.6 million during the next 12 months. Gastar chairman, president and chief executive J. Russell Porter says, "Given our existing 35% working interest in the coal seam gas production from PEL 238, this acquisition more fully aligns our interests with those of our joint venture partner, Eastern Star Gas, as we jointly benefit from the increasing production from the pilot programs. The Wilga Park Power Station will be the primary market for natural gas from PEL 238 until we begin fulfilling our supply arrangements under the two previously announced memorandums of understanding."