GILLETTE, Wyo., May 17, 2011 /PRNewswire/ -- High Plains Gas, Inc. (OTCBB: HPGS or "HPG" or "the Company") today announced its financial results for the three-month period ended March 31, 2011.  

For the first quarter of 2011, total revenue was $4.0 million, compared to $356,311 in total revenue for the first quarter of 2010.  Net loss for the first quarter 2011 was $7.0 million, or $0.04 per share, compared to a net loss of $248,138, or $0.01 per share, in the first quarter of 2010.  At March 31, 2011, the company had $622,887 in cash and cash equivalents, and $50.4 million in total assets.    

Brent Cook, Chief Executive Officer of High Plains Gas, Inc., said: "We are continuing to execute our plan to purchase high-quality, distressed assets and institute the proper procedures and controls to improve their operations.  This is the vision upon which High Plains Gas, Inc. was founded, and it remains our objective today.  We are encouraged by our progress in reactivating idled coalbed methane wells in the fields we purchased from Marathon Oil, and we plan to accelerate that progress as the weather begins to improve over the next several months.  In the past five months, we have reactivated 219 idled coalbed methane wells which are now producing at an aggregate production rate of 3,000 mcf per day, contributing to High Plains' current daily production rate of 16,500 mcf per day across our asset portfolio.  We expect that production will continue to increase from the wells we reactivate as water levels stabilize and our field team maximizes production from these wells."

Cook continued, "We continue to work toward closing the acquisition of Huber's coalbed methane natural gas assets. This acquisition will position us for continued growth in Wyoming's Powder River Basin."

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

Investor Relations

Lippert/Heilshorn & Associates

Mary Magnani

(415) 433-3777

hpg@lhai.com

SOURCE High Plains Gas, Inc.