SOURCE: High Plains Gas, Inc.

February 01, 2011 17:13 ET

High Plains Gas Provides Update on Recent Renovation Work and December Revenue Increase of 22%

GILLETTE, WY--(Marketwire - February 1, 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 an update on their renovation work from December 2010 - January 2011.

The company began renovations on December 1, 2010, when there were approximately 493 wells producing. In December 2010, HPG reactivated 33 idle wells and January 2011 has experienced a similar reactivation pace. Revenue in December 2010 was approximately $1.9 million, up 22% as compared to December 2009 revenue numbers.

"As you can see by the numbers, we are quite pleased in the success of our recent renovation efforts. We brought online 33 wells in the month of December and roughly the same for January 2011. During times of record snow and frigid temperatures, our efforts have continued to result in increased production capacity for these wells. With the pace that we are currently maintaining, we expect to significantly ramp up our overall capacity in the next 12 months. We look forward to continually updating you as we make progress in reworking these wells," commented Greg Greenough, VP of Operations for High Plains Gas.

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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