PostRock Announces Agreement to Sell Certain Appalachian Assets
27 Dicembre 2010 - 3:00PM
PostRock Energy Corporation (Nasdaq:PSTR)
("PostRock" or the "Company") today announced that it has entered
into a definitive agreement with
Magnum Hunter Resources
Corporation (NYSE Amex:MHR) ("MHR") to sell certain assets
in Wetzel and Lewis Counties, West Virginia for aggregate
consideration of $39.75 million. The consideration for the sale
will consist of 50% cash and 50% MHR common stock. PostRock
will use the sale proceeds to repay debt secured by the subject
assets.
The sale is subject to certain conditions and scheduled to close
in two phases, each of which is expected to be completed by
mid-January 2011. The first closing contemplates the sale of
the Wetzel County assets for $28 million and the second closing
contemplates the sale of the Lewis County assets for $11.75
million. Aggregate consideration is subject to adjustment
based on title, indemnities and certain other matters.
Commenting, David C. Lawler, PostRock's President and CEO, said,
"This sale represents another critical step in our strategy to
improve our balance sheet through the reduction of debt and to
sharpen our focus on our core area of operations in the Cherokee
Basin."
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 2,800 wells and
nearly 2,200 miles of gas gathering lines in the Basin. In
addition, it owns 1,100 miles of interstate gas pipelines in
Oklahoma, Kansas and Missouri.
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
Jack Collins, Chief Financial Officer
(405) 702-7460
North Whipple, Manager, Corporate Development &
Investor Relations
(405) 702-7423
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