OKLAHOMA CITY, Aug. 1, 2011 (GLOBE NEWSWIRE) -- PostRock Energy Corporation (Nasdaq:PSTR) today announced its lenders have completed their scheduled borrowing base redetermination. The redetermination was based on the value of PostRock's oil and gas reserves at March 31, 2011 under lender pricing assumptions. Primarily as a result of the decline in lender natural gas price assumptions and the roll off of natural gas hedges since the Company's last redetermination, the Borrowing Base was lowered to $200 million from $225 million.
As of August 1, PostRock's debt totaled $193 million, including $185 million outstanding on the borrowing base facility and $8 million of pipeline debt. The pipeline debt is amortizing at the rate of $1 million a month. PostRock's next redetermination will be effective April 30, 2012 based on the Company's oil and gas reserves at December 31, 2011.
Terry W. Carter, the Company's Interim President, said, "We are delighted with the level of support shown by our lender group during our redetermination process and look forward to working with them to grow PostRock. With our redetermination complete, we can increase our focus on unlocking the long-term potential of the Company and our asset base."
PostRock Energy Corporation is engaged in the acquisition, exploration, development, production and transportation 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 a 1,120 mile interstate natural gas pipeline, which transports natural gas from northern Oklahoma and western Kansas to Wichita and Kansas City.
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