High Plains Energy Inc.
TSX VENTURE : HYE

High Plains Energy Inc.

September 29, 2005 09:00 ET

High Plains Energy Inc. Announces Acquisition of Powermax Energy Inc.

CALGARY, ALBERTA--(CCNMatthews - Sept. 29, 2005) - High Plains Energy Inc. (TSX VENTURE:HYE)("High Plains") is pleased to announce that more than 97% of the issued and outstanding common shares of Powermax ("Powermax Shares") have been tendered to High Plain's previously announced offer to acquire all of the Powermax Shares (the "Offer"). The Offer expired at 4:30 pm (Calgary time) on September 28, 2005 and High Plains has given instructions to the depository under the Offer to take-up and pay for all of the tendered Powermax Shares on the basis of cash in the amount of $0.5067 (Canadian) and 0.333 of a common share in the capital of High Plains for each Powermax Share. High Plains intends to acquire all remaining Powermax Shares pursuant to the compulsory acquisition provisions of the Business Corporations Act (Alberta).

High Plains also announces that Powermax's board of directors has been reconstituted following High Plains' acquisition of the Powermax Shares deposited to date and is now comprised of nominees of High Plains.

Following completion of the Offer, High Plains has on a combined basis:

- approximately 15.3 million shares outstanding prior to option agreements;

- production of more than 525 boe/d;

- proved and probable reserves in excess of 1.15 million barrels of oil equivalent with a value of $19.4 million;

- more than 250,000 undeveloped acres in Alberta and Montana; and

- significant opportunity to quickly impact growth through the substantial upside potential of the new combined entity.

High Plains is a Calgary-based oil and natural gas exploration and development companies. High Plains' common shares trade on the TSX Venture Exchange under the symbol "HYE".

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of High Plains will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.

READER ADVISORY

BOEs 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 judgements 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.
    Ben Anderson
    President and Chief Operating Officer
    (403) 290-0078
    (403) 294-0788 (FAX)
    E-mail: info@highplainsenergy.ca