Profile: PostRock Energy Corp (PSTR.O)
21 Nov 2014
PostRock Energy Corporation (PostRock) is an integrated independent energy company engaged in the acquisition, exploration, development, production and transportation of oil and natural gas. PostRock divides its operations into two reportable business segments: oil and natural gas production, and natural gas pipelines, including transporting, gathering, treating and processing natural gas. On November 1, 2013, the Company acquired approximately 22,000 net acres of leasehold in Pottawatomie, Cleveland and McClain Counties in central Oklahoma, and a 50% working interest in 110 operated acres and three producing wells from one of its working interest partners in Seminole County, Oklahoma.
Oil and Gas Production
The Company’s oil and gas production operations are focused on the development of coal bed methane (CBM) in a 15-county region in southeastern Kansas and northeastern Oklahoma known as the Cherokee Basin. As of December 31, 2009, the Company had approximately 51.9 billion cubic feet equivalent (Bcfe) of estimated net proved reserves in the Cherokee Basin. The Company operates approximately 99% of the existing Cherokee Basin wells and has an average net working interest of approximately 99% and an average net revenue interest of approximately 82% in those wells. As of December 31, 2009, the Company had the development rights to approximately 516,184 net acres throughout the Cherokee Basin, with 34.5% of those acres undeveloped, and were operating approximately 2,849 gross wells in the Cherokee Basin.
The Company’s oil and gas production operations in the Appalachian Basin are focused on the development of the Marcellus Shale. The Company has identified approximately 25 gross undeveloped drilling locations and approximately 415 additional gross potential drilling locations in the Appalachian Basin, which consist of approximately 331 gross vertical well locations and approximately 84 gross horizontal well locations, including development opportunities for Devonian Sands and Brown Shales. These well locations are located within its acreage in West Virginia and New York. As of December 31, 2009, its properties in the Appalachian Basin consisted of approximately 44,507 net acres of oil and natural gas producing properties with estimated reserves of 18.9 Bcfe, which are approximately 60% developed, and net production of approximately 2.9 million cubic feet equivalent per day (Mmcfe/d), and approximately 498 gross wells.
As of December 31, 2009, the Company owned 65 gross wells, which include oil, natural gas and service wells, and the development rights to approximately 1,480 net acres in Central Oklahoma and its oil producing properties in Central Oklahoma had estimated net reserves of 3.9 Bcfe, all of which were developed producing. During the year ended December 31, 2009, net production for its Central Oklahoma properties was approximately 148 barrels per day (Bbls/d).
Natural Gas Pipelines
PostRock owns and operates a natural gas gathering pipeline network of approximately 2,173 miles that serves its acreage position in the Cherokee Basin. As of December 31, 2009, this system had a daily throughput of approximately 85 Mmcf/d. The Company transport 99% of its Cherokee Basin gas production on its gas gathering pipeline network to interstate pipeline delivery points. As of December 31, 2009, the Company had an inventory of approximately 189 gross drilled coal bed methane (CBM) wells awaiting connection to its gas gathering system.
The Company owns and operates a gas gathering pipeline network of approximately 183 miles that serves its acreage position in the Appalachian Basin. The pipeline network delivers both to intrastate gathering and interstate pipeline delivery points. As of December 31, 2009, this system had a daily throughput of approximately 18 Mmcf/d. All of its Appalachian Basin gas production is transported by this gas gathering pipeline network.
PostRock’s interstate pipeline operations consist of a 1,120 mile interstate natural gas pipeline (the KPC Pipeline), which transports natural gas from northern Oklahoma and western Kansas to the metropolitan Wichita and Kansas City markets. It is one of only three pipeline systems, which delivers gas into the Kansas City metropolitan market. The KPC Pipeline includes three compressor stations with a total of 14,680 horsepower and has a throughput capacity of approximately 160 Mmcf/d.
PostRock Energy Corp
SUITE 2750, 210 PARK AVENUE
OKLAHOMA CITY OK 73102