Gastar Exploration Inc. (GST) said Aug. 31 that the borrowing base for the revolving credit facility was reaffirmed at $200 million after the second scheduled redetermination was completed by lenders.
Gastar has drawn $65 million under the facility, resulting in $135 million of unused borrowing capacity. The next borrowing base redetermination is scheduled for May 1, 2016.
Michael A. Gerlich, CEO, said that successful drilling activity in 2015 and a strong hedging program allowed the borrowing base to remain at $200 million in the current commodity price environment. The borrowings, plus internal cash flow and cash on hand, will support the capex budget for the remainder of the year, which was recently expanded, he added. As the company enters 2016, it will have strong liquidity, he said.
Houston-based Gastar Exploration Inc. develops and produces domestic oil, natural gas and NGL.
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