PostRock Closes Two Acquisitions
OKLAHOMA CITY, Nov. 4, 2013 (GLOBE NEWSWIRE) -- PostRock Energy Corporation
(Nasdaq:PSTR) today announced that it closed two acquisitions on November 1,
The first was the previously announced acquisition of approximately 22,000 net
acres of leasehold in Pottawatomie, Cleveland and McClain Counties in central
Oklahoma. PostRock paid $3.4 million of cash and issued 4,516,129 shares of
its common stock as consideration.
In the second transaction, PostRock acquired a 50% working interest in 110
operated acres and three producing wells from one of its working interest
partners in Seminole County, Oklahoma. PostRock now owns a 100% working
interest in the properties. Currently, production from the three wells is
approximately 20 barrels of oil per day. PostRock paid $750,000 of cash as
consideration. PostRock estimates that the net proved reserves acquired total
110,000 barrels of oil, of which approximately 40% is classified developed. On
that basis, acquisition cost equates to $7 per barrel of proved reserves.
Commenting, Terry W. Carter, President and Chief Executive Officer of the
Company, said: "As previously announced, the acquisition of properties in
Pottawatomie, Cleveland and McClain Counties is an important step in our
effort to add oil reserves and development opportunities in central Oklahoma.
The working interest acquisition in Seminole County increases our working
ownership from 50% to 100% in three producing wells on 110 acres, all held by
production. We expect to begin development workovers on these wells in
November. Development workovers on wells in the Seminole County field this
year have cost approximately $325,000 with payouts forecast to average
approximately one year and rates of return forecast to average more than 100%.
Additionally, these properties include one Hunton horizontal PUD and at least
one possible Woodford horizontal well."
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.
Opinions, forecasts, projections or statements, other than statements of
historical fact, are forward-looking statements that involve risks and
uncertainties. Forward-looking statements in this announcement are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. Actual results may
differ materially due to a variety of factors, some of which may not be
foreseen by PostRock. These risks and other risks are detailed in the
Company's filings with the Securities and Exchange Commission, including risk
factors listed in the Company's Annual Report on Form 10-K and other filings
with the SEC. The Company's filings with the SEC may be found at www.pstr.com
or www.sec.gov. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or changes
after the date of this release.
CONTACT: Company Contact:
David J. Klvac
EVP & Chief Financial Officer
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