SOURCE: High Plains Gas

December 03, 2010 17:44 ET

High Plains Gas Comments on Recent "North and South Fairway Asset" Acquisition From Marathon Oil Corporation Subsidiary, Pennaco Energy

GILLETTE, WY--(Marketwire - December 3, 2010) - High Plains Gas, Inc. (OTCBB: NXPN) today commented on its recent major gas field acquisition. Through its wholly-owned subsidiary CEP-M Purchase LLC, High Plains Gas owns the former Marathon Oil Corporation North and South Fairway Assets. The property consists of 1,614 coal bed methane wells and over 155,000 net operated acres.

"This acquisition propels High Plains to a new level. We have gone from 92 coal bed methane wells to over 1,600 with an additional 40,000 acres available for development. With current gross production at about 17,000 Mcfpd (thousand cubic feet per day), we have plans in place to begin an aggressive re-enhancement program on another 600 wells to further accelerate production," said Mark Hettinger, Chairman of High Plains Gas. "The combination of our team and our expertise in reactivation and refurbishment of wells makes this acquisition a great opportunity for the Company to continue to grow in the Basin," added Hettinger.

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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