High Plains Gas CEO Comments on Well Reactivation Strategy

GILLETTE, Wyo., June 13, 2011 /PRNewswire/ -- High Plains Gas, Inc. (OTC: HPGS) Chief Executive Officer, Brent Cook, commented further today on the Company's third quarter 2011 well reactivation strategy.

Brent Cook, CEO of High Plains, stated: "Following the announcement of our well reactivation strategy on June 9, 2011, I would like to provide a more detailed review of our strategy and production process to more specifically address its impact on our growth strategy.

The Fairway Asset that High Plains purchased from Marathon Oil in late 2010 contained roughly 1,100 wells that had been "shut-in" and were not bringing methane gas to market.  We took advantage of this great opportunity to reactivate those wells to produce gas.  While we do not anticipate reactivating all 1,100 wells, we do anticipate reactivating roughly 900-1,000 of those wells.  Our costs for purchase and reactivation have averaged roughly $10,000 per well, versus costs of drilling a new well currently ranging between $120,000 and $280,000.

Our strategy on the Fairway Asset and future acquisitions will be to turn on idled wells that we believe will make gas in economically attractive volumes.  Our acquisitions strategy has always been to buy cash flow in the form of current and easily-accessible production, and to run those assets in a manner that is profitable to the company.  We expect this strategy to again play out as we work to close the acquisition of the J.M. Huber energy division by the end of the second quarter."

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.

Contact:
High Plains Gas, Inc.
P.O. Box 1564
Gillette, WY 82717
(307) 686-5030
Email: [email protected]
www.highplainsgas.com

IR Agency Contact:
Lippert/Heilshorn & Associates, Inc.
Becky Herrick
(415) 433-3777
[email protected]

SOURCE High Plains Gas, Inc.