SOURCE: High Plains Gas

January 11, 2011 09:18 ET

High Plains Gas Completes Acquisition of Grams & Mills Gillette Gas Fields

GILLETTE, WY--(Marketwire - January 11, 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 that it has officially closed the acquisition of two new gas fields known as Grams and Mills Gillette in the Power River Basin of Wyoming.

On December 31, 2010, HPG paid to Jim's Water Service, Inc., the promissory note valued at $475,000 plus interest for a total of $490,833.33 for both fields as determined by the Mortgage Financing Agreement signed by both parties on April 6, 2010. As of January 1, 2011, High Plains Gas is the official owner of Grams and Mills Gillette gas fields.

Previous to HPG's acquisition, Grams and Mills Gillette had produced small amounts of gas since they were originally drilled in 1998. High Plains Gas developed a unique recompletion program that has increased gas production in both fields to 75% of their production volume, at the time of HPG's purchase.

Mark Hettinger, Chairman of High Plains Gas, commented, "Completing this acquisition of Grams and Mills Gillette natural gas fields will allow us to reap the benefits of our renovation efforts now and going forward. We plan to continue to successfully identify these fruitful opportunities and further expand our natural gas capacity."

Additional details on terms of the acquisition transaction are available in the Company's Securities and Exchange (SEC) filing on Form 8-K on October 22, 2010.

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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