2010-12-28-2010-12-27-2011-06-16

Acquired 11,378 gross WV acres and leasehold in Lewis and Wetzel cos., gaining 905,000 Cf/d, 24.3 Bcfe proved.

Triad Hunter LLC, a subsidiary of Magnum Hunter Resources Corp., Houston, (Amex: MHR) has closed its acquisition of properties and leasehold mineral interests in West Virginia from PostRock Energy Corp., Oklahoma City, (Nasdaq: PSTR) for $44.6 million in cash and stock.

Triad Hunter paid $19.875 million in cash and issued 3.2 million restricted Magnum Hunter shares.

The properties cover approximately 11,378 gross acres (8,652 net acres) in Wetzel (40% of gross acres and 27% of net acres) and Lewis counties. Assets consist of eight proved developed producing wells, six developed non-producing wells (shut-in), two wells behind pipe, and 15 proved undeveloped locations.

Net production as of Nov. 1 was approximately 905,000 cubic feet of gas per day (100% natural gas). Proved reserves as of Nov. 1 were approximately 24.3 billion cubic feet of gas equivalent (11% proved developed producing). Magnum Hunter estimates probable reserves of these assets at 165.4 billion cubic feet equivalent.

The acquired acreage is in the general proximity to Triad Hunter's existing West Virginia Marcellus shale exposure, more specifically acreage in Tyler, Pleasants, and Doddridge counties.

PostRock's Appalachian assets now consist of 400 gross (373 net) wells capable of production and an associated 163-mile gathering system primarily in Ritchie County, West Virginia. The wells are on approximately 9,291 net acres classified as developed. An additional 26,815 net undeveloped acres are held, also primarily in Ritchie County. At year-end 2010, net proved reserves of 9 billion cubic feet equivalent were attributed to these properties. They currently produce approximately 1.9 million cubic feet of gas equivalent per day.

Magnum Hunter chairman and chief executive Gary C. Evans says, "Since our initial investment in this region beginning with the acquisition of Triad Hunter earlier this year, we have continued to expand our company's exposure to this resource play with a primary focus in West Virginia. This has been accomplished via a combination of new leases, farm-in's, joint ventures and now this acquisition which further expands our operations into two additional counties."

PostRock president and chief executive David C. Lawler says, "This sale represents another critical step in our strategy to improve our balance sheet through the reduction of debt and to sharpen our focus on our core area of operations in the Cherokee Basin."