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OKLAHOMA CITY, Dec. 27, 2012 (GLOBE NEWSWIRE) --
PostRock Energy Corporation (Nasdaq:PSTR
) today announced that it had made the final Kansas royalty settlement payment of $4.5 million. The cost of the settlement had been fully reserved at December 31, 2011 and is being funded with borrowings on the Company's new revolving credit facility. PostRock expects to have approximately $58 million utilized on its credit facility at December 31, 2012.
Terry W. Carter, PostRock's President and Chief Executive Officer said, "We are pleased to announce that with this final payment, we have successfully resolved the last remaining liability from our predecessor entities. We begin 2013 with no legacy issues, a new credit facility in place and plans for increasing shareholder value.
"Additionally, we continue to see steady growth in oil production as a result of our development efforts in the Cherokee Basin and Central Oklahoma. Barring unforeseen interruptions, we expect our fourth quarter oil sales to be at least 50% greater than the first quarter of 2012 and expect to continue this trend in 2013. While year-end reserves are still being assessed, initial internal analyses indicate a material increase in oil reserves year-over-year. In mid-January we plan to provide key operational and financial information from the fourth quarter of 2012 and a summary of our plans for 2013."
PostRock Energy Corporation is engaged in the acquisition, exploration, development, production and transportation 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 Oklahoma and oil and gas producing properties in the Appalachian Basin.
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PostRock Energy Corporation