PostRock Exchanges Common Stock for Warrants

PostRock Exchanges Common Stock for Warrants

OKLAHOMA CITY, Dec. 23, 2013 (GLOBE NEWSWIRE) -- PostRock Energy Corporation
(Nasdaq:PSTR) today announced that on December 13, 2013, it issued 1,123,981
shares of PostRock common stock to White Deer Energy L.P., White Deer Energy
TE L.P. and White Deer Energy FI L.P. ("White Deer") in exchange for warrants
held by White Deer exercisable for 22,241,333 shares of common stock together
with a like number of one one-hundredths of a share of Series B Voting
Preferred Stock which were issued as a unit with the warrants. The warrants
had exercise prices ranging from $2.80 to $6.39 per share, with a weighted
average exercise price of $3.23 per share. The transaction reduces the
outstanding warrants by approximately 55%. Following the exchange, White Deer
owned 10,958,601 shares of common stock and warrants to purchase 17,704,904
shares of common stock with a weighted average exercise price of $1.58 per
share. White Deer's fully diluted ownership after the exchange and assuming
conversion of all other derivative securities outstanding is reduced from 69%
to 57%, and White Deer's voting power is reduced from 64% to 51%.

The warrants were valued as of September 30, 2013 by a third-party appraisal
firm. The number of shares issued was determined by dividing the total value
of the warrants by $1.31, the closing price of the common stock on the NASDAQ
Global Market on the same date. The transaction was reviewed and approved by
the unaffiliated members of the board of directors of PostRock.

Commenting, Terry W. Carter, President and Chief Executive Officer of the
Company, said: "This transaction is a step toward simplifying PostRock's
balance sheet by substantially reducing the overhang of the warrants held by
White Deer."

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.

Forward-Looking Statements

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
or 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: David J. Klvac
         EVP & Chief Financial Officer
         (405) 815-4304

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