August 1, 2012

White Deer Invests Additional $12 Million in PostRock

OKLAHOMA CITY, Aug. 1, 2012 (GLOBE NEWSWIRE) -- PostRock Energy Corporation (Nasdaq:PSTR) ("PostRock" or the "Company") today announced that White Deer Energy L.P. ("White Deer") acquired an additional $12 million of equity in the Company. White Deer acquired 3,076,923 shares of common stock at a price of $1.95 per share, yesterday's consolidated closing bid price. Simultaneously, White Deer purchased $6,000,000 of 12% cumulative redeemable preferred stock and received 3,076,923 warrants to purchase common stock at a price of $1.95 a share. 

The purchase of preferred and warrants are on terms similar to those in White Deer's original September 2010 investment. However, the new warrants, including those that may be issued on future pay-in-kind dividends on this preferred, are and will be non-voting and all of those warrants will have an exercise price of $1.95 a share. Subsequent to the transaction, White Deer held $80 million at liquidation preference of the Company's preferred stock and 5,257,156 of its common shares. To help protect PostRock's liquidity, White Deer also extended the period during which PostRock may pay-in-kind the dividends on all preferred stock held by White Deer by 18 months to December 2014.  Proceeds from the investment will be used to reduce debt and provide additional working capital. Following closing, PostRock's debt had been reduced to $159.3 million and its borrowing base was $165.5 million.

Commenting on the transaction, Terry W. Carter said, "We are delighted by White Deer's show of confidence in PostRock and its prospects. By steadily retiring debt and reducing the Company's cost structure, we believe PostRock can be well positioned to withstand current low gas prices and to benefit from an eventual price recovery. The extension of the PIK period on our preferred in concert with the new equity capital represents a substantial step in that direction."

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 approximately 3,000 wells and nearly 2,200 miles of gas gathering lines in the Basin. It also owns KPC, a 1,120 mile interstate pipeline, which transports natural gas from northern Oklahoma and western Kansas to Wichita and Kansas City.

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CONTACT: North Whipple

         Director, Finance & Investor Relations

         (405) 702-7423

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