SOURCE: High Plains Gas

February 07, 2011 08:30 ET

High Plains Gas Enters Into a Definitive Purchase and Sale Agreement to Acquire J.M. Huber's Coal Bed Methane Natural Gas Assets Located in Wyoming's Powder River Basin

GILLETTE, WY--(Marketwire - February 7, 2011) - High Plains Gas, Inc. (OTCBB: HPGS) ("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 the Company has entered into a Purchase and Sale Agreement to acquire J.M. Huber's natural gas assets located in Wyoming's Powder River Basin. This acquisition of coal bed methane properties represents significant gas production as well as resource base and land position, encompassing approximately 313,600 net operated acres.

The acquisition includes the operational capacities including flow lines, transportation rights and production wells (both active and idle). The transaction also includes approximately 150,000 net acres of "deep rights" for oil production.

 Mark Hettinger, Chairman of High Plains Gas, said, "The acquisition of J.M. Huber's Powder River Basin assets is very strategic for our Company because it compliments extremely well our recent acquisition of the Fairway Assets from Marathon Oil Corporation. These two acquisitions combined will make High Plains a major producer of natural gas in the Powder River Basin. They are a perfect fit for the experience and expertise the Company has in refurbishment and reactivation of coal bed methane wells," continued Hettinger.

Huber Asset Highlights

  • Current Production: ~51,200 Mcfpd -- Net from ~1,735 active wells (~90% Operated)
  • Acreage Position: 313,600 Net Acres (nearly 55% undeveloped)
  • Average Working Interest: 93.6%
  • Average Net Revenue Interest: 75.9%

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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