PostRock Energy Corporation provided an update on its operations. During the second quarter, the Company spent approximately $11.9 million on development projects, primarily targeting oil development and infrastructure. The Company's debt at June 30 totaled $77.5 million. Oil sales during the quarter averaged slightly more than 540 Bbls a day, a 50% increase from first quarter levels and more than double the prior year period.

Gas sales during the period declined 11.7% from the prior year period, to an average of 39.9 MMcf per day, as the Company has not made material expenditures on gas development projects in the last 21 months. The gas decline rate is expected to moderate as the Company's wells move down their decline curve and the fuel savings and increased reliability to be realized from the compression project materialize.

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