PSTRQ PostRock Energy Corporation (CE)

PostRock Energy Corporation (Nasdaq:PSTR) today announced that the borrowing base on its bank credit facility had been redetermined. Primarily due to the decline in natural gas prices and the roll off of hedges, the Company's borrowing base was reduced $24 million to $176 million. Going forward, the borrowing base will decrease by $1 million a month. Interest on the facility remains at Libor plus 4%. However, on borrowings above $120 million, an additional 1.5% of interest is payable.  Finally, if the Company does not enter into an agreement to sell the KPC Pipeline relatively soon, White Deer Energy L.P. has committed to invest an additional $7.5 million in PostRock equity.

At June 1, 2012, PostRock had $168 million borrowed or committed on its bank facility. At current gas prices, the Company does not anticipate having meaningful liquidity for some time. The Company plans to fund its operations with internal cash flow as it continues to reduce debt.

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 approximately 3,000 wells and nearly 2,200 miles of gas gathering lines in the Basin. It also owns KPC, a 1,120 mile interstate 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: North Whipple
         Director, Finance & Investor Relations
         (405) 702-7423
         NWhipple@pstr.com