Gastar Exploration Ltd. announced that the company has signed a settlement agreement related to litigation involving ClassicStar, LLC. The settlement agreement covers seven separate lawsuits filed against the company.
Gastar Exploration Ltd. has agreed to pay a total of $21.15 million to settle all claims regarding ClassicStar, LLC. The company will pay $18 million in cash within ten days of the approval of the settlement agreement, balance of $3.15 million in sixteen monthly payments. The first payment is $150,000 to be followed by fifteen payments of $200,000.
Gastar Exploration Ltd. said that the settlement agreement must be approved by the bankruptcy court overseeing the liquidation of ClassicStar, LLC under Chapter 7 of the U.S. bankruptcy code. The company said that the U.S. Bankruptcy Court for the Eastern District of Kentucky is supervising the case, and the settlement agreement will be presented to the court before November 19, 2010.
As part of the settlement agreement, Gastar Exploration Ltd. admitted no liability to any of the allegations in the lawsuits. The company said that it agreed to the settlement to avoid prolonged and expensive litigation.
Gastar Exploration Ltd. is an oil and gas exploration and production company that has properties in Texas, West Virginia and Pennsylvania.
For more information on the company, go to www.gastar.com
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