PostRock Acquires Central Oklahoma Leasehold
OKLAHOMA CITY, May 30, 2013 (GLOBE NEWSWIRE) -- PostRock Energy Corporation
(Nasdaq:PSTR) today announced that it had acquired approximately 4,300 net
acres of leasehold in northern Lincoln and southern Payne Counties, Oklahoma.
The acreage is believed prospective for oil from the Mississippian and
Woodford formations. PostRock paid $1.7 million of cash and issued 126,602
shares of its common stock as consideration. The cash was funded with
borrowings under the Company's bank revolver.
Terry W. Carter, PostRock's President and Chief Executive Officer, said, "We
are very pleased to have completed this acquisition. Coupled with ongoing
leasing activity, our leasehold in Central Oklahoma now approximates 8,100
acres. Though our position in the area remains modest, we have increased it
five-fold since year-end. Our first horizontal well in Central Oklahoma should
spud within 45 days and our first horizontal well on the acquired land should
spud within six months. In addition, we expect to participate as a small
working interest owner in 3 to 5 other wells beginning as soon as this summer
under Oklahoma's normal pooling process. If initial drilling proves
successful, we would expect to continue expanding our acreage holdings in
PostRock Energy Corporation is engaged in the acquisition, exploration,
development and production 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 Central Oklahoma and minor oil and gas
producing properties in the Appalachian Basin.
CONTACT: Company Contact:
David J. Klvac
EVP & Chief Financial Officer
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