High Plains Gas Announces Purchase and Sale Amendment and Extension Related to J.M. Huber Acquisition
April 01 2011 - 2:00PM
Marketwired
High Plains Gas, Inc. (OTCBB: HPGS) (or "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 announces an amendment and extension
related to the purchase and sale order for the acquisition of J.M.
Huber's coal bed methane natural gas assets in Wyoming's Powder
River Basin ("PRB").
On March 31, 2011, the Company announced the execution of an
amendment to the Purchase and Sale Agreement between J.M. Huber
Corporation, as seller, and High Plains Gas, Inc., as buyer.
According to the amendment, High Plains Gas will deliver 1,500,000
shares of restricted stock as consideration to serve as a deposit
for the extension. Upon closing, J.M. Huber has the option to
either keep the shares and lower the purchase price by $1.5
million, or return them to the Company. The closing date for the
purchase and sale order has been extended until April 29, 2011. The
total purchase price of the transaction remains valued at
approximately $35 million.
J.M. Huber's coal bed methane assets are comprised of
approximately 313,600 net operated acres in the Powder River Basin
as well as approximately 200,000 gross acres of "deep rights" for
oil production. On that acreage, there are 1,735 wells producing
around 51 MMcf per day. Huber manages a total of 2,300 wells within
a 4,200 square mile area in the Powder River Basin.
Mark Hettinger, Chairman of High Plains Gas, commented, "On
behalf of High Plains Gas management team, we view this acquisition
as a very synergistic addition to our current natural gas assets
and it's a prime example of our growth strategy and resource
acquisition efforts. We are pleased with the Huber personnel, their
abilities and compatibilities and look forward to working with them
in the time ahead."
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.
Contact High Plains Gas, Inc. P.O. Box 1564 Gillette, WY
82717 (307) 686-5030 Email: ir@highplainsgas.com
www.highplainsgas.com American Capital Ventures Howard Gostfrand
(305) 918-7000 info@amcapventures.com