PostRock Provides Update on Borrowing Base Redetermination
June 11 2010 - 9:05AM
PostRock Energy Corporation (Nasdaq:PSTR) today
announced that its lenders have completed a semi-annual review of
the borrowing base pursuant to the terms of the Company's Quest
Cherokee credit agreement. Based on this review, the borrowing base
of the Quest Cherokee credit agreement was reduced to $125,000,000,
down from the prior level of $145,000,000. As of June 11, 2010,
borrowings outstanding under the Quest Cherokee credit agreement
were $138,600,000 while cash balances at PostRock Midcontinent
Production LLC were approximately $18 million. The Company is in
compliance with all its financial covenants and intends to use
existing cash balances to eliminate the $13.6 million borrowing
base deficiency in two equal monthly installments, with the first
payment to be made on or before July 2, 2010.
About PostRock Energy Corporation
PostRock Energy Corporation is a vertically integrated
independent energy company engaged in the acquisition, exploration,
development, production and transportation of oil and natural gas
in the Cherokee Basin, the Appalachian Basin and Central Oklahoma.
PostRock has over 2,800 wells and nearly 2,200 miles of natural gas
gathering pipelines in the Cherokee Basin. The Company also owns
and operates nearly 400 natural gas and oil producing wells and
undeveloped acreage in the Appalachian Basin of the northeastern
United States and more than 1,100 miles of interstate natural gas
transmission pipelines in Oklahoma, Kansas and Missouri. For more
information, visit PostRock's website at www.pstr.com.
The PostRock Energy Corp. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7221
Forward-Looking Statements
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
North Whipple, Manager, Corporate Development and Investor
Relations
www.pstr.com
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