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PostRock Wraps Up Oklahoma Workovers; Starts Up Gathering System

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   |    Thursday,May 29,2014

PostRock Energy Corporation has reported an operations update.

During the last 75 days, the Company has completed twelve workovers in Central Oklahoma. The average total cost per workover was approximately $275,000 and, collectively, the workovers have a projected IRR in excess of 100% at current oil and gas prices. This has resulted in the Company's current oil production rising to an average of 700 net barrels per day, 18% over first quarter levels. Within the next week, the Company expects to finish drilling its initial Central Oklahoma horizontal well in Seminole County. The well targets the Hunton formation and, if successful, should be on production in June. A second horizontal well will be spudded immediately thereafter.

Additionally, the last compressor conversion on the Company's Cherokee Basin gathering system was completed and started up two weeks ago. This concluded an 18-month project that, on a cumulative basis, will result in annual savings of approximately $7.2 million at current gas prices.