PostRock Energy Corp is a Delaware corporation formed on July 1, 2009. The Company, together with its subsidiaries, is an independent oil and gas company engaged in acquisition, exploration, development, production and gathering of crude oil and natural gas. Its production activity is focused in the Cherokee Basin, a 15-county region in southeastern Kansas and northeastern Oklahoma, and Central Oklahoma. It also has minor oil and gas producing properties in the Appalachian Basin. The Company produces conventional oil in addition to coal bed methane gas out of its properties in the Cherokee Basin which is situated between the Forest City Basin to the north, the Arkoma Basin to the south, the Ozark Dome to the east and the Nemaha Ridge to the west. The main gas formations targeted include the Mulky, the Weir-Pittsburgh and the Riverton. The Company operates in competitive environment for acquiring properties, marketing their production and employing trained personnel. The Company's operations are subject to various increasingly stringent federal, state and local laws and regulations relating to the emission, release and discharge of materials into, and the protection of, the environment and the protection of natural resources and wildlife and imposing liability for pollution.