Standard & Poor's Ratings Services has placed its CCC corporate credit and other ratings of Gastar Exploration USA Inc., a subsidiary of Gastar Exploration Ltd., Houston, (Amex: GST; Toronto: YGA) on CreditWatch with positive implications.

S&P credit analyst Amy Eddy says, “The ratings action follows the announcement that Gastar has entered into an agreement with affiliates of Santos Ltd. [BBB+/Stable/A-2] for the sale of all of Gastar's interests in certain petroleum exploration licenses in New South Wales, Australia.”

 Gastar expects to receive net after-tax proceeds of $175 million. The deal is expected to close on July 10. S&P believes the sale will materially reshape Gastar’s balance sheet by allowing it to repay nearly all debt, which will eliminate refinancing risk, covenant concerns and strengthen its liquidity.

            S&P could raise the CCC rating on Gastar following a full review of the company upon or near a successful close of aforementioned transaction.

Gastar is an exploration and production company focused on finding and developing natural gas assets in North America and Australia.