High Plains Gas Announces Amendment to Purchase and Sale Agreement (PSA) with J.M. Huber Corporation

GILLETTE, Wyo., June 30, 2011 /PRNewswire/ -- High Plains Gas, Inc. (OTC: HPGS) ("the Company") announced an amendment to the Purchase and Sale Agreement (PSA) with  J.M. Huber Energy Corporation to purchase its oil and gas assets located in the Powder River Basin. The closing deadline has been extended to July 29, 2011.

Brent Cook, Chief Executive Officer of High Plains Gas, said, "It is our stated strategy to seek assets that we believe are undervalued as we believe these are the opportunities to add value for shareholders. As such, we are working diligently to finalize closing terms for this transaction that make financial and operational sense and benefit High Plains and its shareholders. It is with this in mind that we have signed another amendment to our PSA with Huber, therefore further extending the timeframe of the close of this transaction.  We appreciate the continued support of all parties involved as well as our shareholders."

Cook continued, "Due to the extended timeframe, we have postponed the investor conference call we had scheduled for today, June 30th.  We will reschedule this call once the deal terms have been determined and agreed upon.  We look forward to reporting a successful close on a conference call in the third quarter."

The transaction, originally announced on February 7, 2011, includes 1,735 producing coalbed methane wells in Sheridan, Johnson, and Campbell Counties, Wyoming and covers 313,000 net leased acres.  The transaction also includes the purchase of 200,000 net acres of deep mineral rights, which may be prospective for multi-zone oil or gas development, that are currently held by existing production.

About the Company

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.  The Company recently acquired CEP – M Purchase LLC, which currently owns the former Marathon "North & South Fairway" assets.  These assets consist of 1614 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

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.

Company Contact:
High Plains Gas, Inc.
Tim Ondrak
(406) 239-1214
Email: [email protected]
www.highplainsgas.com

IR Agency Contact:
Lippert/Heilshorn & Associates, Inc.
John Heilshorn
(212) 838-3777
[email protected]

SOURCE High Plains Gas, Inc.