A nonbinding letter of intent related to the proposal has expired and the $7.5 million payment previously placed in escrow by Gastar has been returned to the company.
Gastar president and chief executive J Russell Porter said, “While we continue to believe strongly in the opportunities in developing brown coal resources, after further discussions, including discussions with our principal lenders, we recognise that the substantial added capital requirements and a potential debt restructuring necessary to pursue this acquisition and development, while maintaining our strong commitment to our current and planned natural gas and oil exploration operations, are not in the best interests of the company at this time.”
“We intend to aggressively move forward with a continuing focus on our East Texas Deep Bossier play, while also seeking to maximise the future value of our other assets, including our existing Australian coal bed methane and mineral sands interests in New South Wales and Victoria. We will also continue to analyse new opportunities that are consistent with our core businesses,” Porter said.
