GILLETTE, Wyo., June 1, 2011 /PRNewswire/ -- High Plains Gas,
Inc. (OTCBB: HPGS or "HPG" or "the Company") today announced the
amendment of the Purchase and Sale Agreement between the Company
and J.M. Huber Corporation. The transaction involves certain
coalbed methane assets in Wyoming
and Montana and has been extended.
The amendment expires June 30, 2011,
but has provisions which allow the parties to either close or
cancel the amendment prior to that date. Details of the transaction
were first announced on February 27,
2011.
This amendment grants High Plains Gas, Inc. additional time to
close the purchase of Huber's Powder
River Basin coalbed methane assets as amended. Huber
has the right to pursue sales to third parties and may terminate
the agreement upon written notice and pursue actions that it deems
appropriate. High Plains may notice Huber at anytime of its
intentions to close the transaction prior to any termination notice
and the transaction may proceed to close. Huber continues to hold
non-refundable deposits in the amount of $2
million and 2 million shares of HPGS common stock which may
be applied towards the closing price.
Brent Cook, CEO of High Plains
Gas, Inc, said, "This extension allows more time to complete
details of the transaction while preserving the parties'
options. We look forward to concluding this transaction with Huber
in the second quarter of 2011."
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.