PostRock Defers ATM Sales
OKLAHOMA CITY, June 25, 2013 (GLOBE NEWSWIRE) -- PostRock Energy Corporation
(Nasdaq:PSTR) today announced that it had suspended sales under its
at-the-market issuance program ("ATM") for the foreseeable future. The
objective is to allow the Company's stock time to begin to reflect the
progress the Company believes it has made in the last 12 months.
Since ATM sales were initiated in June of 2012, approximately 3 million shares
of common stock have been sold for net proceeds of $4.7 million.During the
second quarter of 2013, the Company sold 530,646 shares for net proceeds of
Commenting, Terry W. Carter, the Company's President and CEO, said, "The ATM
was a welcome but modest source of liquidity as we began to develop our oil
projects.However, additional sales do not appear necessary in the near
future.Now that our oil development program has begun to bear fruit and
results have justified a modest increase in our borrowing base, we believe we
have sufficient liquidity to continue our plans.Consequently, it appears our
shareholders will be best served if we suspend sales under the ATM program and
let demand for our shares flow directly into the public market."
PostRock Energy Corporation is engaged in the acquisition, 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 a small
but growing number of oil producing properties in central Oklahoma as well as
minor oil and gas producing properties in Appalachia.
Opinions, forecasts, projections and statements that are not historical facts
are forward-looking statements that involve risks and uncertainties. Such
statements in this announcement are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. While the
Company believes expectations reflected in these statements are reasonable,
there is no assurance they will prove correct. Actual results may differ
materially due to unforeseen factors. These risks and others are detailed in
the Company's filings with the Securities and Exchange Commission which may be
found at www.pstr.com or www.sec.gov. In making forward-looking statements,
the Company undertakes no obligation to update them.
CONTACT: Company Contact:
David J. Klvac
EVP & Chief Financial Officer
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