OKLAHOMA CITY, May 30, 2013 (GLOBE NEWSWIRE) -- PostRock Energy Corporation (Nasdaq:PSTR) today announced that it had acquired approximately 4,300 net acres of leasehold in northern Lincoln and southern Payne Counties, Oklahoma. The acreage is believed prospective for oil from the Mississippian and Woodford formations. PostRock paid $1.7 million of cash and issued 126,602 shares of its common stock as consideration. The cash was funded with borrowings under the Company's bank revolver.
Terry W. Carter, PostRock's President and Chief Executive Officer, said, "We are very pleased to have completed this acquisition. Coupled with ongoing leasing activity, our leasehold in Central Oklahoma now approximates 8,100 acres. Though our position in the area remains modest, we have increased it five-fold since year-end. Our first horizontal well in Central Oklahoma should spud within 45 days and our first horizontal well on the acquired land should spud within six months. In addition, we expect to participate as a small working interest owner in 3 to 5 other wells beginning as soon as this summer under Oklahoma's normal pooling process. If initial drilling proves successful, we would expect to continue expanding our acreage holdings in Central Oklahoma."
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 Basin. It also owns and operates oil producing properties in Central Oklahoma and minor oil and gas producing properties in the Appalachian Basin.
CONTACT: Company Contact: David J. Klvac EVP & Chief Financial Officer email@example.com (405) 815-4304
Source:PostRock Energy Corporation