Gastar Exploration Ltd announced that it has agreed to provide Cubic Energy further extension on the closing of the previously announced sale of Gastar's East Texas properties. The closing of the transaction has been extended to August 16, 2013, with an option to extend to August 30, 2013 included, in order to allow Cubic Energy additional time to finalize financing. As compensation for the August 16 extension, Cubic Energy has paid an additional deposit of $1.15 million to Gastar bringing the total non-refundable deposit received to $3.45 million, or 7.5% of the transaction's $46 million value.
If Cubic Energy elects to further extend the closing date to August 30, an additional $1.15 million non-refundable deposit will be made. Upon closing, the deposit shall be applied toward the purchase price. In addition, as previously disclosed, Gastar will receive an aggregate reduction of $700,000 in negative closing adjustments for prior extensions granted to Cubic Energy.
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