OKLAHOMA CITY, March 4, 2014 (GLOBE NEWSWIRE) -- PostRock Energy Corporation (Nasdaq:PSTR) today announced that the trial in Delaware of its suit against Constellation Energy Partners, LLC and Sanchez Energy Partners I, LP, et al. had been postponed indefinitely based on an anticipated settlement. While nothing has yet been finalized, the proposed settlement contemplates PostRock recovering a target of $21.6 million via the sale of all of its A Units to CEP and Sanchez followed by the orderly disposition of its B Units in a combination of a sale or sales to Sanchez and various block or other market transactions in the course of 2014. Full details of the settlement will be disclosed promptly as soon as it is finalized.
The settlement as currently proposed would eliminate all disputes between the parties and position PostRock to redeploy its capital into oil-focused development projects primarily in central Oklahoma. It will also free CEP and Sanchez to develop and implement a growth strategy at CEP. While there can be no assurance of success, it is hoped that the settlement will be finalized before month end.
PostRock Energy Corporation is engaged in the acquisition, exploration, 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 Cherokee Basin. It also owns and operates oil producing properties in central Oklahoma and minor oil and gas producing properties in the Appalachian Basin.
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 the Company 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 the Company's filings with the Securities and Exchange Commission, including risk factors listed in the Company's Annual Report on Form 10-K and other filings with the SEC. The Company's filings with the SEC may be found at www.pstr.com or www.sec.gov. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
CONTACT: Company Contact Stephen L. DeGiusti Executive Vice President, General Counsel & Secretary firstname.lastname@example.org (405) 702-7420
Source:PostRock Energy Corporation