Baltimore's Constellation Energy Group has divested its minority stake in a gas and oil production company under a deal worth $22.5 million.
Under the agreement announced Tuesday, Oklahoma City-based PostRock Energy Corp. agreed to buy all of Constellation's 28.5 percent stake in Constellation Energy Partners LLC.
Constellation formed the Houston-based limited liability gas and oil production company and spun it off in late 2006.
Under the deal, Constellation will receive $11.25 million in cash and $11.25 million in PostRock common stock and warrants to acquire additional shares.
PostRock and CEP both have the majority of their assets and operations in the Cherokee Basin of Kansas and Oklahoma.
The deal requires the approval of CEP's independent directors and PostRock shareholders.