NGAS Resources (NGAS)

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Nov 9 (Reuters) - Gas company NGAS Resources (NGAS.O) said it is evaluating strategic alternatives, including a sale, as weak gas prices continue to hurt and its debt stands at more than double its market value.

NGAS also said it was not in compliance with the leverage-ratio covenant of its credit facility, under which it currently has outstanding borrowings of $35.8 million. It has a long-term debt of $56 million.

Oversupply in shales, or tight rock formations, has meant gas prices NGc1 have shed about a third of their value year to date.

The Lexington, Kentucky-based company, which operates in the unconventional gas plays in the eastern United States, also reported a wider third-quarter loss. [ID:nASA011BN]

The company' shares, valued at about $24 million, have shed two-thirds in the last one year. They closed at 60 cents on Tuesday on Nasdaq. (Reporting by Krishna N. Das in Bangalore)