PSTRQ PostRock Energy Corporation (CE)

PostRock Energy Corporation (Nasdaq:PSTR) today announced that the District Court of Nowata County, Oklahoma, has entered final approval of the settlement of the royalty owner class action lawsuit against the Company. The settlement resolves all claims against the Company by its royalty owners in the State of Oklahoma. PostRock funded the $5.6 million cost of the settlement with existing cash balances. The cost of the Settlement had been fully reserved at March 31, 2011.

Terry W. Carter, the Company's Interim President, said, "We are pleased to fully resolve all disputes with our Oklahoma royalty holders. The resolution is another key step in putting all material issues related to PostRock's predecessor entities behind us and allows us to increase our focus on improving our operations and consolidating 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 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