PostRock Energy has closed the second phase of its sale of certain assets in West Virginia to Magnum Hunter Resources (MHR).
The total value for the first two phases of the sale totaled $39.7m.
The consideration for the sale that closed on 30 December 2010 was $28m, comprised of $14m of cash and $14m of restricted MHR common stock.
Approximately $8.5m of cash and approximately $12.6m of MHR common stock were used to reduce the principal balance of the non-recourse QER loan secured by certain Appalachian assets.
The consideration for the sale that closed on 14 January 2011 was $11.7m, comprised of approximately $5.8m of cash and approximately $5.9m of restricted MHR common stock.
Approximately $3.6m of cash and approximately $5.7m of MHR common stock were utilized to reduce the principal balance of the QER loan.
The purchase agreement also provides for MHR to acquire a third, smaller package of assets upon satisfaction of certain events and conditions.