PostRock to Buy 24.5% Stake in Constellation Energy Partners

PostRock Energy Corporation PSTR today announced that it had agreed to purchase all of Constellation Energy Group, Inc.'s CEG interests in Constellation Energy Partners LLC CEP. PostRock will acquire 5,918,894 Class B Member Interests, representing approximately 24.5% of that class along with all outstanding Class A, Class C and Class D Member Interests. In the transaction, PostRock will receive all of CEG's voting rights, including its right to appoint two of the five members of CEP's Board. CEG will receive consideration comprised of $11.25 million of cash, $11.25 million of PostRock common stock and warrants to acquire an additional 1.5 million shares of PostRock common stock at a premium to market. Closing is subject to approval of the transaction by the independent directors of CEP and a vote by PostRock's shareholders. In the PostRock vote, White Deer has pledged the support of its 45% voting interest. PostRock and CEP both have the majority of their assets and operations in the Cherokee Basin of Kansas and Oklahoma.