OKLAHOMA CITY, Oct. 29, 2013 (GLOBE NEWSWIRE) -- PostRock Energy Corporation (Nasdaq: PSTR ) today announced that the borrowing base under its revolving credit facility has been increased to $115 million based on mid-year reserves. This represents a $20 million increase in the Company's borrowing base.
The credit facility syndicate, which is led by Citibank, includes Cadence Bank, Compass Bank and OneWest Bank as Co-Agents and Texas Capital Bank as a participant. As of October 29, 2013, PostRock had $88.5 million drawn under the credit facility and $1.3 million in letters of credit outstanding, resulting in $25.2 million of available liquidity.
Terry W. Carter, PostRock's President and Chief Executive Officer, said, "We are extremely pleased with the increase to our borrowing base. It is a further testament to the progress made on our development projects and the growth opportunities we believe lie ahead. We believe the facility, coupled with cash flows from operations, will provide ample liquidity for our 2014 capital budget which we expect to finalize in mid-December."
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.
Forward-Looking Statements
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.
David J. Klvac EVP & Chief Financial Officer (405) 815-4304
