High Plains Energy Inc.

High Plains Energy Inc.

May 29, 2006 18:52 ET

High Plains Energy Inc. Announces Correction to Reserve Life Index Table

CALGARY, ALBERTA--(CCNMatthews - May 29, 2006) - High Plains Energy Inc. (TSX VENTURE:HYE) ("High Plains" or the "Company") announces a correction to its previously disclosed Reserve Life Index table contained in its May 1, 2006 news release. The average production rate for 2006 for its Proved plus Probable reserves category effective December 31, 2005 should equal 636 boe/d, providing a reserves life index of 11.9 years. The revised table has been presented below:

Reserve Life Index

2005 2004
2005 Proved Plus 2004 Proved Plus
Proved Probable Proved Probable

Forecast Production
(BOE/d) 584 636 95 101
Reserve Life Index
(Years) 5.9 11.9 18.1 19.8


BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

The reader is further cautioned that the preparation of financial statements in accordance with generally accepted accounting principles requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • High Plains Energy Inc.
    Daryl W. Cook
    Chief Executive Officer
    (403) 290-0078
    (403) 294-0788 (FAX)
    Email: daryl@hye.ca
    High Plains Energy Inc.
    Vince Ghazar
    Chief Financial Officer
    (403) 723-4456
    (403) 294-0788 (FAX)
    Email: vince@hye.ca