White Deer Makes Investment In PostRock

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Acquired approximately 23% stake in company with CBM assets in Cherokee Basin oil-producing properties in OK & gas-producing properties in Appalachian Basin, gaining 121.5 Bcfe proved.

PostRock Energy Corporation (Nasdaq:PSTR ) announced that White Deer Energy LP completed a $7.5 million investment in the company. In the transaction, White Deer acquired 2,180,233 common shares at a price of $3.44 per share.

The proceeds from the investment will be used to retire the term loan secured by the KPC pipeline and for working capital. Immediately following the closing, PostRock's debt, net of cash on hand, was $184 million.

PostRock continues to explore strategic alternatives for the KPC pipeline. Possible transactions include a sale or joint venture and may involve a conversion of part of the line to crude oil service. Proceeds from a transaction with KPC will be used to reduce debt and for general corporate purposes.