PostRock Energy Corp. reported that the company has received an equity investment of $60 million from White Deer Energy L.P., a private limited partnership that makes investments in energy companies.

White Deer Energy L.P. will receive 12% cumulative redeemable preferred stock in exchange for the $60 million investment. The cumulative redeemable preferred stock has a 7 ½ year term and may be called by PostRock Energy Corporation after one year by paying a ten percent premium to par value. The company also has the right to pay dividends on the preferred stock in cash or in more shares of preferred stock. This pay in kind right expires in 2013.

PostRock Energy Corporation will also issue warrants that entitle White Deer Energy L.P. to purchase $60 million of PostRock Energy Corporation common stock at a price of $3.15 per share. The warrants expire 7 ½ years from the date of issuance.

White Deer Energy L.P. also received the right to vote its preferred shares along with the common stock in company matters. The number of shares that White Deer Energy L.P. is entitled to vote includes the effect of the warrant exercise.

PostRock Energy Corporation said that it would use the proceeds from the equity issuance to reduce debt and fund future oil and gas development activities. The company owns producing properties in the Cherokee and Appalachian Basins.

For more information on the company, go to www.pstr.com

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