PostRock Provides Update On Borrowing Base Redetermination
OKLAHOMA CITY, June 11, 2010 (GLOBE NEWSWIRE) -- PostRock Energy Corporation (Nasdaq:PSTR) today announced that its lenders have completed a semi-annual review of the borrowing base pursuant to the terms of the Company's Quest Cherokee credit agreement. Based on this review, the borrowing base of the Quest Cherokee credit agreement was reduced to $125,000,000, down from the prior level of $145,000,000. As of June 11, 2010, borrowings outstanding under the Quest Cherokee credit agreement were $138,600,000 while cash balances at PostRock Midcontinent Production LLC were approximately $18 million. The Company is in compliance with all its financial covenants and intends to use existing cash balances to eliminate the $13.6 million borrowing base deficiency in two equal monthly installments, with the first payment to be made on or before July 2, 2010.
About PostRock Energy Corporation
PostRock Energy Corporation is a vertically integrated independent energy company engaged in the acquisition, exploration, development, production and transportation of oil and natural gas in the Cherokee Basin, the Appalachian Basin and Central Oklahoma. PostRock has over 2,800 wells and nearly 2,200 miles of natural gas gathering pipelines in the Cherokee Basin. The Company also owns and operates nearly 400 natural gas and oil producing wells and undeveloped acreage in the Appalachian Basin of the northeastern United States and more than 1,100 miles of interstate natural gas transmission pipelines in Oklahoma, Kansas and Missouri. For more information, visit PostRock's website at www.pstr.com .The PostRock Energy Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7221 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 PostRock 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 PostRock's filings with the Securities and Exchange Commission, including risk factors listed in PostRock's Annual Report on Form 10-K and other filings with the SEC. You can find PostRock's filings with the SEC at www.pstr.com or www.sec.gov. By making these forward-looking statements, PostRock undertakes no obligation to update these statements for revisions or changes after the date of this release.
CONTACT: PostRock Energy Corporation North Whipple, Manager, Corporate Development and Investor Relations www.pstr.com
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