November 4, 2010 (FinancialWire) (http://www.financialwire.net/) — Gastar Exploration Ltd. (AMEX: GST) said that its Gastar Exploration USA, Inc. subsidiary has closed a joint venture agreement funding with Atinum Marcellus I LLC, an affiliate of Korean investment firm Atinum Partners Co., Ltd.

Under the agreement, Gastar has assigned to Atinum an initial 21.43% interest in all of its existing Marcellus Shale undeveloped lease acreage in West Virginia and Pennsylvania, along with certain producing shallow conventional wells.

With the closing of the transaction, Atinum has paid Gastar $30 million in cash and now owns a 21.43% interest in the 34,200 net acres of Marcellus Shale rights previously owned by Gastar.

Also under the terms of the agreement, Atinum has committed to an additional $40 million in the form of a drilling carry to Gastar by funding 75% of Gastar's 50% share of drilling completion and infrastructure costs in addition to its own 50% share of these same costs.

Upon the completion of the funding of the $40 million drilling carry, Atinum will own a 50% interest in the acreage, making the transaction valued at approximately $70 million.

Gastar and Atinum have an initial three-year development program that calls for them to drill one horizontal Marcellus Shale well during the remainder of 2010 and a minimum of 12 horizontal wells in 2011 and 24 in each of 2012 and 2013.  Gastar will continue to serve as operator of all of the Marcellus Shale interests in the joint venture.  

Texas-based Gastar Exploration is an exploration and production company focused on finding and developing natural gas assets in North America.  

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