High Plains Gas Enters Into a Definitive Purchase and Sale Agreement to Acquire J.M. Huber's Coal Bed Methane Natural Gas Assets
February 07 2011 - 8:30AM
Marketwired
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.
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.
Contact High Plains Gas, Inc. P.O. Box 1564 Gillette, WY
82717 (307) 686-5030 Email: ir@highplainsgas.com
www.highplainsgas.com Investor Relations American Capital
Ventures Howard Gostfrand (305) 918-7000 info@amcapventures.com