Gastar Exploration 8.625% Serie (GST-PA)
The South Korean Investor - Atinum Partners Co. ( atinumep.com )
I have been buying the GSTpA. I like that with their JV deal they have sufficient money to complete their 2011-2013 drilling program(s) and enough cash to make all of their Preferred dividend payments. After reading more about the specific terms of that JV deal, I feel a lot more comfortable holding their preferred shares.
The GSTpA went exdividend today AND it traded higher. I am trying to buy more of it under $20.00/share. Perhaps the general public thinks the exdividend date is the 15th and it will trade lower.
Their JV partner Atinum Partners Co. has invested close to $1B in other similar shale development deals. I would not be surprised to see one or more of their properties packaged and sold to some Chinese consortium and/or Atinum E&P sold to a Chinese consortium.
SandRidge ropes in Korean partner, Atinum, to exploit Mississippian Play in a $500 Million JV. Chesapeake offers $1.5 Bn-Mississippian parcel for sale.
mergersandacquisitionreviewcom.blogspot.com
From the article:"...As per the terms of the agreement, SandRidge will transfer an undivided 13.2% non-operated working interest in approximately 860,000 acres, or approximately 113,000 net acres to Atinum for a total transaction value of $500 million. Atinum will pay $250 million in cash at closing. Atinum has also committed to a drilling carry obligation to pay 13.2% of SandRidge's share of drilling and completion cost for wells drilled in the AMI up to a total amount of $250 million, which is anticipated to occur over a three year period....".
Source: Atinum Partners
Date: December 07, 2009 07:00 ET
Atinum Partners Acquires U.S. Business of Sterling Energy plc
globenewswire.com
From the article:"...Atinum E & P has working interests in approximately 200 active wells in Texas, Texas state waters and onshore Louisiana. Current production in excess of 24 Mmcfed (million cubic feet equivalent per day) with total proved reserves of approximately 53 Bcfe (billion cubic feet equivalent) and probable reserves of 41 Bcfe. In addition AEP has an inventory of over 100 drilling projects located onshore in Texas and Louisiana including representation in an active Eagle Ford shale gas development in South Texas. All 32 employees of the previous owner have been retained and offices remain in Houston, TX...."
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The value kicker for these GSTpA shares is one receives a premium to Par ($25.00/Par) if they are called BEFORE 2014. One of the ways they can be called is if GST is sold. If after the 24 wells are drilled (at Atinum Partners Co. expense) and produce as expected, would Atinum Partners Co. want to be the remaining 50% interest and/or all of GST?
You receive close to 11% while you wait for a possible 25% capital gain kicker if the answer is yes.
EKS |
