SOURCE: High Plains Gas

November 29, 2010 09:54 ET

High Plains Gas Acquires 100% of North and South Fairway Assets Gas Field From Pennaco Energy, a Subsidiary of Marathon Oil Corporation

Becomes a Significant Natural Gas Producer in the Powder River Basin

GILLETTE, WY--(Marketwire - November 29, 2010) - High Plains Gas, Inc. (OTCBB: NXPN) today announced that it has finalized the acquisition of 100% interest in the North and South Fairway Assets spanning 155,000 net operated acres of coal bed methane properties. High Plains has exercised its previously announced option agreement to acquire the remaining 49% interest in CEP M Purchase, LLC from Current Energy Corporation, which effectively acquires 100% of CEP M Purchase and thereby acquiring the Fairway Assets.

Previously, High Plains announced that it had acquired 51% interest in CEP M Purchase, LLC, owner of the North and South Fairway Assets held by Pennaco Energy (a subsidiary of Marathon Oil Corporation).

Asset Highlights

  • Current Production: ~17,000 Mcfpd - Gross/~13,600 Mcfpd-Net
  • Over 1,600 Coal Bed Methane Wells
  • Acreage Position: 155,000 Net Acres ( > 90% Held by Production)
  • Average Working Interest: 97%
  • Average Net Revenue Interest: 80%
  • 40,000 acres available for future development

"With the option agreement to purchase 100% of CEP M Purchase now closed and ownership of the Fairway Assets complete, we are ready to execute on our plans for this significant property acquisition. This property will be the foundation for High Plains to move forward aggressively with other acquisition targets we have identified of greater value in the Basin," said Mark Hettinger, Chairman of High Plains Gas. 

Brent Cook, CEO of Current Energy, commented, "Closing these transactions is the culmination of a lot of hard work by both teams, and takes High Plains to the next level of production in the Powder River Basin."

High Plains Gas, Inc. is a Gillette, Wyoming based energy company actively engaged in the acquisition, development and production of natural gas primarily in the Powder River Basin. The Company recently acquired CEP - M Purchase LLC, which currently owns the former Marathon "North & South Fairway" assets. These assets consist of 1614 Coal Bed Methane Wells with associated flow lines and over 155, 000 net acres. This combined with the company's existing 92 natural gas wells gives the company a strong foundation in the natural gas industry. High Plains Gas will pursue expansion opportunities for the profitable production and transmission of natural gas. High Plains Gas believes it has unique expertise and experience in the refurbishment and reactivation of wells that produce natural gas from coal bed methane formations that helps position it strategically in the Powder River Basin.

Statements made about our future expectations are forward-looking statements and subject to risks and uncertainties as described in our most recent filings made with the US Securities and Exchange Commission, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.

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