GILLETTE, Wyo., May 6, 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 Energy Corporation. The transaction involves certain coalbed methane assets in Wyoming and Montana and the anticipated closing date has been extended to May 31, 2011. 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 through the date of the extension. Huber will receive 500,000 shares of High Plains Gas stock in consideration for the extension. The value of these shares will serve as a deposit, and at the closing, Huber may elect to credit the purchase price with the agreed upon value of the shares or return the shares to the Company.
Brent Cook, CEO of High Plains Gas, Inc., said, "This extension allows more time to complete details of the transaction. 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.
Lippert/Heilshorn & Associates
SOURCE High Plains Gas, Inc.