OKLAHOMA CITY, June 25, 2013 (GLOBE NEWSWIRE) -- PostRock Energy Corporation (Nasdaq:PSTR) today announced that it had suspended sales under its at-the-market issuance program ("ATM") for the foreseeable future. The objective is to allow the Company's stock time to begin to reflect the progress the Company believes it has made in the last 12 months.
Since ATM sales were initiated in June of 2012, approximately 3 million shares of common stock have been sold for net proceeds of $4.7 million. During the second quarter of 2013, the Company sold 530,646 shares for net proceeds of $800,000.
Commenting, Terry W. Carter, the Company's President and CEO, said, "The ATM was a welcome but modest source of liquidity as we began to develop our oil projects. However, additional sales do not appear necessary in the near future. Now that our oil development program has begun to bear fruit and results have justified a modest increase in our borrowing base, we believe we have sufficient liquidity to continue our plans. Consequently, it appears our shareholders will be best served if we suspend sales under the ATM program and let demand for our shares flow directly into the public market."
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 a small but growing number of oil producing properties in central Oklahoma as well as minor 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: Company Contact: David J. Klvac EVP & Chief Financial Officer email@example.com (405) 815-4304
Source:PostRock Energy Corporation