SOURCE: High Plains Gas, Inc.

January 19, 2011 09:30 ET

High Plains Gas Announces Signing of Agreement With Optigas

GILLETTE, WY--(Marketwire - January 19, 2011) - High Plains Gas, Inc. (OTCBB: NXPN) ("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 announced the signing of a contract with Optigas to compress and move natural gas from the Kingsbury Field to the sales point for the Company.

Optigas, owned by the Certias Group, has a Kingsbury methane gas gathering system in the Powder River Basin of Wyoming. This system consists of pipelines and a central compressor station designed to compress gas from 5 pounds per square inch gauge ("psig") to 750 psig for intrastate pipeline delivery. The systems currently have over 30,000 HP of installed compression and are presently capable of transporting 85,000 Mcf/d of inlet gas. Optigas has plans of an additional 10,000 HP of additional compression to handle increased volume in the next year.

Mark Hettinger, President of High Plains, said, "Under our contract terms with Optigas, we were able to secure a favorable rate for the compression of our methane gas in Kingsbury Field. We hope to expand our agreement with Optigas as we continue to rework existing wells and bring more fields online. Optigas has made a commitment to us to provide the man power and equipment necessary to fill our needs in the Kingsbury field."

ABOUT HIGH PLAINS GAS

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.

SAFE HARBOR STATEMENT

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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