PostRock Energy Corporation provided an update on its Central Oklahoma development program and announced that approximately a third of its preferred securities will be converted into common stock. Drilling results in Oklahoma continue to significantly increase the Company's oil production and reserves. To help support the ongoing development program and reduce PostRock's fixed charges, White Deer Energy is exchanging a sizeable portion of its preferred for common stock.

As previously reported, two horizontal wells were drilled during the second quarter in the Hunton formation of the Searight Field in Seminole County. The first is currently producing approximately 260 barrels of oil a day, having produced almost 35,000 barrels since coming on line in late June. The second well, which was put on production in July, is producing approximately 100 barrels a day and has produced almost 9,500 barrels to date.

Based on current oil and gas futures prices, the wells in combination are projected to have a payback of approximately 13 months and an IRR of 100+%. The two wells, which were drilled for a combined cost of $6.2 million, are substantially exceeding pre-drill forecasts. The Company expects to drill two additional Hunton wells before year-end.