OKLAHOMA CITY, June 20, 2011 (GLOBE NEWSWIRE) -- PostRock Energy Corporation (Nasdaq:PSTR) ("PostRock" or the "Company") today announced that the District Court of Nowata County, Oklahoma has preliminarily certified a class and approved a settlement of all claims against the Company by its royalty owners in the State of Oklahoma. Following a 30 day period during which members of the Class may opt out, a hearing on final approval of the Settlement will be held July 28. A total of $5.6 million will be paid to the claimants. The cost of the Settlement had been fully reserved at March 31, 2011.
Jack T. Collins, the Company's Executive Vice President and Chief Financial Officer, said, "We are delighted to be on the path to fully resolving all disputes with our Oklahoma royalty holders. This settlement is another key step in putting all material issues related to PostRock's predecessor entities behind us. More importantly, it will allow us to greatly increase our focus on operations and our pursuit of consolidation in the Cherokee Basin."
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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CONTACT: Jack Collins Chief Financial Officer (405) 702-7460 North Whipple Manager, Corporate Development & Investor Relations (405) 702-7423