PostRock Concludes Asset Sale
16 Giugno 2011 - 10:35PM
PostRock Energy Corporation (Nasdaq:PSTR)
("PostRock" or the "Company") today announced that it had completed
its previously announced sale of West Virginia assets to Magnum
Hunter Resources Corporation (NYSE:MHR). In the sale, a total of
$44.6 million was realized. The $4.3 million just received, in
combination with approximately 141,000 newly issued shares of
PostRock common stock, are being delivered to a lender to fully
satisfy and discharge the Company's non-recourse
loan. PostRock expects to recover the stock's $843,000 value
when funds escrowed in earlier phases of the sale are released in
mid-2012. Subsequent to the sale, PostRock's Appalachian
assets consist of 400 gross (373 net) wells capable of production
and an associated 163 mile gathering system located primarily in
Ritchie County, West Virginia. The wells are located on
approximately 9,291 net acres classified as developed. An
additional 26,815 net undeveloped acres are held, also primarily in
Ritchie County. At year end 2010, 9.0 Bcfe of net proved
reserves were attributed to these properties. They currently
produce approximately 1.9 Mmcfe of gas a day.
Giving effect to the elimination of the non-recourse facility,
PostRock's debt totaled $196.0 million, including $186.0 million
outstanding on its $225 million borrowing base facility and $10
million of pipeline debt. As it is being amortized at the rate
of $1.0 million a month, the pipeline debt will be retired
shortly.
Jack T. Collins, the Company's Executive Vice President and
Chief Financial Officer, said, "We were delighted to conclude our
Magnum Hunter sale and, as a result, to reduce our debt while
simplifying the Company's capital structure. These
transactions go a long way towards putting the financial issues
related to PostRock's predecessor companies behind us."
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 a
1,120 mile interstate natural gas pipeline, which transports
natural gas from northern Oklahoma and western Kansas to Wichita
and Kansas City.
The PostRock Energy Corp. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7221
CONTACT: Jack Collins
Chief Financial Officer
(405) 702-7460
North Whipple
Manager, Corporate Development & Investor Relations
(405) 702-7423
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