SOURCE: High Plains Gas

April 01, 2011 14:01 ET

High Plains Gas Announces Purchase and Sale Amendment and Extension Related to J.M. Huber Acquisition

GILLETTE, WY--(Marketwire - April 1, 2011) - High Plains Gas, Inc. (OTCBB: HPGS) (or "HPG" or "the Company"), a Gillette, Wyoming based energy company actively engaged in the acquisition, development and production of natural gas primarily in the Powder River Basin, today announces an amendment and extension related to the purchase and sale order for the acquisition of J.M. Huber's coal bed methane natural gas assets in Wyoming's Powder River Basin ("PRB").

On March 31, 2011, the Company announced the execution of an amendment to the Purchase and Sale Agreement between J.M. Huber Corporation, as seller, and High Plains Gas, Inc., as buyer. According to the amendment, High Plains Gas will deliver 1,500,000 shares of restricted stock as consideration to serve as a deposit for the extension. Upon closing, J.M. Huber has the option to either keep the shares and lower the purchase price by $1.5 million, or return them to the Company. The closing date for the purchase and sale order has been extended until April 29, 2011. The total purchase price of the transaction remains valued at approximately $35 million.

J.M. Huber's coal bed methane assets are comprised of approximately 313,600 net operated acres in the Powder River Basin as well as approximately 200,000 gross acres of "deep rights" for oil production. On that acreage, there are 1,735 wells producing around 51 MMcf per day. Huber manages a total of 2,300 wells within a 4,200 square mile area in the Powder River Basin.

Mark Hettinger, Chairman of High Plains Gas, commented, "On behalf of High Plains Gas management team, we view this acquisition as a very synergistic addition to our current natural gas assets and it's a prime example of our growth strategy and resource acquisition efforts. We are pleased with the Huber personnel, their abilities and compatibilities and look forward to working with them in the time ahead."


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. Through its wholly-owned subsidiary CEP - M Purchase LLC, the Company owns the former Marathon "North & South Fairway" assets. These assets consist of 1,614 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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