PostRock Energy Corp.

Transaction Type
Sellers
Marketers
Basin
Appalachian
Post Date
Estimated Price
0MM
Description

PostRock Energy Corp., Oklahoma City, (Nasdaq: PSTR) has retained investment banking firm Robert W. Baird & Co. to sell approximately 44,500 net acres in the Marcellus shale play.

The assets are primarily in Wetzel, Ritchie, Lewis and Braxton counties in West Virginia. Approximately 1,600 net acres are in Steuben, N.Y. As of year-end 2009, the company had 498 gross wells on the acreage. Net production as of year-end 2009 was 2.9 million cubic feet of gas equivalent per day. Net proved reserves as of year-end 2009 were 18.9 billion cubic feet equivalent.

Upside as of year-end 2009 was 25 gross proved undeveloped drilling locations and approximately 415 additional gross potential drilling locations in the Appalachian Basin.

KeyBanc Capital Markets associate analyst Gabriele Sorbara reports the transaction improvesPostRock's balance sheet and allows it to develop its core assets in the Cherokee Basin in Kansas and Oklahoma.

"Based on a price tag of $1,500 per acre on average, the package could fetch north of $65 million," she says.

Contact Curtis Goot, 314-812-2775, cgoot@rwbaird.com.