PostRock Makes Final Litigation Payment
OKLAHOMA CITY, Dec. 27, 2012 (GLOBE NEWSWIRE) -- PostRock Energy Corporation
(Nasdaq:PSTR) today announced that it had made the final Kansas royalty
settlement payment of $4.5 million. The cost of the settlement had been fully
reserved at December 31, 2011 and is being funded with borrowings on the
Company's new revolving credit facility. PostRock expects to have
approximately $58 million utilized on its credit facility at December 31,
Terry W. Carter, PostRock's President and Chief Executive Officer said, "We
are pleased to announce that with this final payment, we have successfully
resolved the last remaining liability from our predecessor entities. We begin
2013 with no legacy issues, a new credit facility in place and plans for
increasing shareholder value.
"Additionally, we continue to see steady growth in oil production as a result
of our development efforts in the Cherokee Basin and Central Oklahoma. Barring
unforeseen interruptions, we expect our fourth quarter oil sales to be at
least 50% greater than the first quarter of 2012 and expect to continue this
trend in 2013. While year-end reserves are still being assessed, initial
internal analyses indicate a material increase in oil reserves year-over-year.
In mid-January we plan to provide key operational and financial information
from the fourth quarter of 2012 and a summary of our plans for 2013."
PostRock Energy Corporation is engaged in the acquisition, exploration,
development, production and transportation of oil and natural gas, primarily
in the Cherokee Basin of Kansas and Oklahoma. The Company owns and operates
over 3,000 wells and nearly 2,200 miles of gas gathering lines in the Basin.
It also owns and operates oil producing properties in Oklahoma and oil and gas
producing properties in the Appalachian Basin.
The PostRock Energy Corp. logo is available at
CONTACT: Company Contact:
Director, Finance & Investor Relations
PostRock Energy Corporation
PostRock Energy Corporation Logo
Press spacebar to pause and continue. Press esc to stop.