GILLETTE, Wyo., May 10, 2011 /PRNewswire/ -- High Plains Gas,
Inc. (OTCBB: HPGS or "HPG" or "the Company") today announced an
update on the total number of reactivated wells in the North and
South Fairway coalbed methane fields. Between December 1, 2010 and April
30, 2011, High Plains Gas reactivated 219 wells previously
idled by Pennaco Energy that were not producing natural gas prior
to the reactivation program.
Mark Hettinger, Chief Operations
Officer of High Plains Gas, Inc., said, "Our focus on reactivating
previously idled wells is moving forward faster than we anticipated
due to cooperative weather and the best efforts of our field
personnel. Our goal was to bring at least 30 additional wells
per month into production from the North and South Fairway fields
and we have far exceeded that goal with 219 wells reactivated in
five months. We expect this level of activity to continue and
it is likely that as the weather improves, we can reactivate idle
wells at a faster pace. We will also continue to focus our
efforts on stimulating production from these wells using techniques
our team has learned from years of experience with coalbed methane
wells."
High Plains Gas acquired the North and South Fairway fields on
November 19, 2010, and commenced
operations of those fields on December 1,
2010. These coalbed methane fields consist of 1,614
wells, of which 926 still remain idled and are not producing
natural gas. High Plains Gas intends to continue reactivating
wells in these fields to significantly increase the production from
these assets.
Hettinger continued, "Our business strategy has always been to
increase our production by bringing idled wells back into
production. By reactivating idled wells, our natural gas
sales and revenues increase, which allows us to put more capital to
work to further develop our acreage position and grow our
production and revenues. Because our reactivation strategy
allows us to maintain a fairly flat cost structure, any increase in
production leads directly to increases in our bottom line
profitability."
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.