High Plains Gas Completes $1.12 Million Common Stock Financing
GILLETTE, Wyo., Aug. 15, 2011 /PRNewswire/ -- High Plains Gas, Inc. (OTC: HPGS, "the Company") announced it has completed an initial round of funding of approximately $1.12 million from institutional investor Ironridge Global Energy, in exchange for unregistered shares of Company common stock. The Company expects to continue working with Ironridge Global to raise up to $3.5 million in additional funding.
"With the proven track record of their experienced management team, High Plains Gas is well positioned to take advantage of a robust domestic energy sector," commented John Kirkland, Managing Director of Ironridge Global. "We believe that producing more energy at home will improve both economic national security and shareholder value."
"We are pleased to complete this first stage in our financing, the proceeds of which will help support our strategies to create long-term growth in our company and drive our success going forward," stated Joe Hettinger, CFO of High Plains Gas, Inc. "Furthermore, we remain focused on continuing to operate our current assets and build our services unit, as well as looking for acquisition opportunities that complement our strategy to purchase high quality, revenue producing assets in the oil and gas industry."
Terms of the Financing
Ironridge Global acquired outstanding debt from Company creditors and on August 10, 2011, High Plains issued unregistered shares of common stock to Ironridge in full and final settlement of the accounts payable acquired by Ironridge. The shares issued to Ironridge are subject to adjustment within a defined range.
About Ironridge Global
Ironridge Global Energy is a division of Ironridge Global IV, Ltd., a public equity firm that assists public companies in financing operations and expansion. The firm's core objective is to propel high growth companies in building faster growing and more profitable enterprises. Ironridge Global brings traditional private equity financial sophistication to small cap public companies. The firm does not desire to influence or control management, will not restrict use of proceeds, requires no restrictive covenants, and will never take an affiliate or control position. Ironridge Global exclusively places its trust in current management with a strong vision for accelerated growth and increased shareholder value.
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. The Company recently acquired 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.
SOURCE High Plains Gas, Inc.
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