PostRock Provides Production and Operations Update
07 Giugno 2013 - 12:30AM
PostRock Energy Corporation (Nasdaq:PSTR) today
provided an update on its production and key operational
improvements. Net oil production for April and May averaged
approximately 590 Bbls per day, an increase of 38% from the first
quarter and of over 90% from the second quarter of 2012. Monthly
net oil sales currently lag production by approximately 11% due to
on-lease inventory buildup as production facilities are constructed
in the Cherokee Basin. Net gas production during the period
averaged slightly less than 40 MMcf per day, a 3% decrease from the
first quarter of 2013, as all development capital has been directed
to oil projects since September 2011. However, based on a
year-to-date 26:1 realized price equivalency ratio of oil to
natural gas, production has increased about 5% thus far in the
second quarter as compared to the first quarter. This trend is
expected to continue throughout the year as development of the
Company's oil opportunities proceeds.
Additionally, the Company's Cherokee Basin compression
reconfiguration project is 20% complete, with full implementation
expected by March 31, 2014. Total project cost is estimated at
$7 million. When completed, site efficiencies are projected to
reduce fuel use by 2.5 MMcf per day, equating to $3 million in
additional annual net revenue at current gas prices, and reduce
annual rental costs by $3.2 million.
Commenting, Terry W. Carter, the Company's President and CEO,
said, "Our ongoing oil development and cost improvement projects
continue to add value for our shareholders. The
reduction of compression costs and fuel use not only increases
cash flow to accelerate development of our multiyear oil project
inventory, but also gets us nearer to achieving IRRs of 30% on
natural gas development in the Cherokee Basin at gas prices near
$4.50 per Mcf."
PostRock Energy Corporation is engaged in the acquisition,
development and production 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 central Oklahoma and oil and gas producing properties
in Appalachia.
Opinions, forecasts, projections and statements that are not
historical facts are forward-looking statements that involve risks
and uncertainties. Such statements in this announcement are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. While the Company believes
expectations reflected in these statements are reasonable, there is
no assurance they will prove correct. Actual results may differ
materially due to unforeseen factors. These risks and others are
detailed in the Company's filings with the Securities and Exchange
Commission which may be found at www.pstr.com or www.sec.gov. In
making forward-looking statements, the Company undertakes no
obligation to update them.
CONTACT: David J. Klvac
EVP & Chief Financial Officer
dklvac@pstr.com
(405) 815-4304
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