Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events [Abstract]

Subsequent Events

Note 11 — Subsequent Events

     As discussed in Note 9 — Commitments and Contingencies, on July 28, 2011, the Company finalized the settlements related to its Oklahoma royalty owner lawsuits and the following day the Company used cash on hand to fund the $5.6 million in settlements.

     Effective July 31, 2011, the Company’s borrowing base credit facility was redetermined based on its oil and gas reserves at March 31, 2011. The borrowing base was reduced from $225 million to $200 million.

     On August 8, 2011, the Company purchased a majority of Constellation Energy Group, Inc.’s (“CEG”) interests in Constellation Energy Partners LLC (“CEP”). In the transaction, the Company acquired all 485,065 Class A Member Interests and 3,128,670 Class B Member Interests. In combination, the acquired units represent a 14.9% interest in CEP. CEG’s consideration was comprised of $6.6 million of cash, 1,000,000 shares of PostRock common stock and warrants to acquire an additional 673,822 shares of PostRock. Of the warrants, 224,607 are exercisable for one year at an exercise price of $6.57 a share, 224,607 are exercisable for two years at $7.07 a share and 224,608 for three years at $7.57 a share.