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Finally some positive PR and look what happens... the stock price rises!
http://online.wsj.com/article/PR-CO-20140729-912377.html
SHERIDAN, Wyo.--(BUSINESS WIRE)--July 29, 2014--
High Plains Gas (OTCBB: HPGS) announced today that the company has begun preparations to produce coalbed methane (CBM) gas again. The company has personnel out in the field, and preparing its Patriot Energy Gathering LLC gathering and compression assets getting them "spooled" up to receive gas from the CBM wells that belong to Patriot Energy Resources LLC. High Plains CEO Ed Presley stated, "We plan to have 'Gathering' ready to receive first inline gas from the wells in the next couple of weeks. This first effort is small in scale to the overall job at hand, but after 25 months of being completely shut in, we are pleased with this initial step."
High Plains Gas, Inc., through its wholly owned subsidiaries, owns and operates approximately 3,000 CBM wells. As of last week, all of their wells were in shut in status. High Plains Gas has a gas marketing agreement with United Energy Trading (UET) of Lakewood, CO. Once all preliminary work has been completed, the company intends on selling its gas though UET.
HPGS Execs are utterly failing their investors and shareholders... Even debt holders should be gravely concerned at the utter lack of transparency.
Here's the facts as I know them:
HPGS was granted (apparently by the grace of a commission that has zero faith in Ed Presley) 120 days to turn some wells on, transmit NG, take care of bonding issues and easement/access issues.
To date, HPGS IS WORKING towards the afore mentioned list of items they were given 120 days to do. Despite efforts towards these goals, investors, and shareholders of every class of shares are NOT being given any hard evidence of such activities via a simple Open Letter to Shareholders or a Press Release. An appropriate Press release should be detailing bonding issues, transmission contracts, idle well counts, etc.
Ed Presley seems to have a "I don't owe shareholders anything because they were shareholders under the Hettinger/Hargett/Miller rule"...BUT THATS NOT THE CASE!
Fact is, numerous retail level and institutional level buyers have taken stakes in HPGS POST previous exec team removal. In other words, people took up faith in HPGS since Presley and his executive team took over AND PRESLEY is failing all of them.
With zero contact response from their web page, investors are forced to sit idly by as the stock dives from recent, encouraging highs back to sub penny level...or they can contact the one person anyone has a number to: Bob Mitchell @ (720) 226-1031.
Mr. Mitchell appears to be a straight shooter and it's encouraging that he's receptive to investor questions. That said, it's important to note that he is NOT Investor Relations. Since he is not I.R. investors should be wary and conduct their own due diligence post any conversations with him.
I personally believe that HPGS has a seemingly overwhelming and nearly impossible task ahead of them. Saddled with debt, no known revenue, a GAZMO that most don't believe or otherwise know works...and a CEO who's got virtually NO KNOWN capital markets experience ... Huge headwinds...serious...HUGE headwinds... not to mention all the ranchers, property owners, contractors etc WHO WERE SO BADLY BURNED BY THE HETTTINGERS that they seemingly are refusing access to wells to turn them on.... Sheesh... To say there are headwinds is an understatement.
Ed Presley and his team... Can they pull this off?! Nobody knows...in fact...people who know the industry and the sentiment in Wyoming overwhelmingly rejected Ed's plan...but they got 120 days in spite of themselves.
Ed needs to become vocal with investors of every class. He needs to let the Press Release dog off its leash. I'm not advocating a pump and dump...I'm advocating legitimate transparency.
Until there is transparency here, HPGS stock will continue to fall, investors of every class will leave and HPGS will lose the only thing it seems to have going for it: Investor Capital.
Two things are certain:
1.) if they pull this off and generate the revenue/profits they've discussed in commission hearings and news articles, this stock will soar.
2.) if they fail, investors of every class will flee, or take incredible losses on HPGS common shares, Preferred Shares, and all Debt Instruments.
At this rate...none of those two certainties will matter because if a tree falls in the woods, and no press is released by the CEO about it...will anyone even know it happened?
Get off your hind quarters Ed! Quit being a lazy, or selfish, or stupid CEO and get investors some information. You need our capital...any way you slice it, you're a Publicly held company and you need your investors capital for better balance sheets. Get off your backside, stand up, glove up, and quit being a CEO on paper only.
The problem hasn't been in negative press, but rather, as Moneym8ker has alluded to in previous posts, the lack of any press whatsoever. Even the lack of transparency/communication with HPGS has also been observed since the management changes. So from an investor's stand point, I know every little about Ed Presley or the progress he has made with HPGS since he has taken over. And now we hear this. It's just very discouraging that the good news regarding the acquisition of Patriot's wells has led to a very dismal outlook for this company.
Curious as to what the GAZMO and CDPP technology was that Ed Presley brings to the table, this is was I discovered. If you're looking for hope, this could be it:
http://www.mcfenergy.biz/Coalbed-Methane-Industry.html
http://www.mcfenergy.biz/GAZMO.html
For sure, it's not exactly good publicity, in fact there is nothing positive in that article other than being given the chance to prove themselves. Still...it's more than I hoped for at this stage, I mean if you read the past articles you probably knew all the negatives already. Nothing new there.
IF they start producing, they already have the gas marketing agreement in place to sell to United Energy Trading. Hopefully they can generate enough revenue in 4 months to cover the fines and outstanding bond payments. This ticker has always been pure speculation and nothing has happened in almost 2 years, so I'd say that current events are somewhat encouraging. Hang in there :)
Was I the only one who just got depressed from reading that article? I understand the excitement of getting a chance to do something with their newly acquired wells, but to any future investor, this is horrible PR in my opinion. After hearing all those negative reasons as to why HPGS is not deserving of another chance, who would want to invest in the company like that?! It also begs the question, why would the OGCC give them this opportunity when everything is telling them not to. It just seems fishy. I hope Presley can prove these naysayers wrong, but as for me, this article left me very skeptical.
I think if they are able to put at least some of these wells back on line in the 120days the commission would give them some more time . Otherwise the commission is going to have to clean them up
Definitely!! Now they can put their GAZMO thing to work and hopefully start bringing in revenue! They have the gas marketing agreement in place, so they can sell it as soon as they start producing! According to the article that could be as soon as August 1st, less than two weeks for now! Amazing news! I'm sure we'll be seeing a PR very soon and lots of positive developments!
State gives CBM operator 4 months to turn on wells despite overwhelming doubts!!! YAY!!!!
http://wyofile.com/dustin/state-gives-cbm-operator-4-months-turn-wells-despite-overwhelming-doubts/#sthash.To5qhkMC.dpuf
State officials gave Ed Presley another chance on Tuesday.
They did it despite having no confidence in his financing scheme, his ability to meet bonding requirements or minimum well safety and environmental requirements, little confidence in his knowledge of the condition of the coal-bed methane wells that he owns, and little confidence that landowners will allow him access to his wells.
Despite all of these doubts, landowners in the South Kitty Field area west of Gillette may very well expect to find Presley and a hired crew driving from idle coal-bed methane well to well flipping switches on as early as August 1.
The Wyoming Oil and Gas Conservation Commission (OGCC) granted Patriot Energy Resources and High Plains Gas — of which Presley is CEO — 120 days to post an additional $6 million in bonding and pay a total $20,000 in fines. Failing this, the state agency will force forfeiture of existing bonds — approximately $8 million that the OGCC holds.
By Presley’s own estimate, his companies are at least $50 million in debt, and his preliminary plan to rectify the situation was submitted to the OGCC staff on the Sunday before Tuesday’s hearing.
“We feel we’ve been extremely patient with High Plains over the year. We have very low confidence they will get their plan implemented in a timely manner,” Lucas Keeler, OGCC natural resource analyst, testified to the five-member OGCC commission.
If Presley should fail to produce enough gas from these derelict wells in 120 days in order to gain more financing, the OGCC’s pending action to demand $6 million more in bonding would likely add another 2,011 idle fee (private mineral) coal-bed methane gas wells to the state’s orphaned wells cleanup list, which is already at more than 1,200 wells. It would set in motion Presley’s “belly up” scenario of knocking his companies completely out of business, adding another 906 state and federal mineral wells to the state’s orphaned well list (all of which are out of compliance as well).
In a hearing that lasted nearly 4 hours on Tuesday, the OGCC staff laid out why Patriot and High Plains are not deserving of another chance. OGCC staff recommended the commission impose the fines and extra idle well bonding, and only 30 days for compliance — not 120 days.
Eric Easton, Wyoming Attorney General counsel to the OGCC, testified that Presley’s “preliminary” plan to put wells back into production and come into compliance — which Presley promised would be amended over and over again — is “so lacking it’s hard to even contemplate what’s going on.”
Easton iterated that for well over a year High Plains and Patriot had failed to conduct any mechanical integrity testing on its wells as required by state regulation, failed to put any wells back into production as promised, and failed to meet additional idle well bond requirements demanded by the commission.
“Clearly this has been going on for a long time. … The plan proposed by High Plains and Patriot is nowhere close to a complete (plan),” Easton testified.
Commissioners seemed to agree.
“I do not doubt your sincerity,” commissioner Mark Doelger told Presley. “I do not think you have a detailed plan,” he said, adding that Presley admittedly has little knowledge of the wells that have remained idle with no engineering analysis, mechanical testing and other vital information.
“Mr. Presley, you tried your best,” said commissioner Tom Drean, Wyoming’s State Geologist. “But quite frankly I don’t think you’ve got a plan. … If you don’t know which wells you’re going to turn on in a couple of weeks, it’s not likely they’re going to get turned on.”
Both the commissioners and the OGCC staff said they relied on information provided to the agency by the Sheridan-based landowner advocacy group Powder River Basin Resource Council — particularly for details of alleged debts to mineral royalty owners, which include public and private entities, and regarding the companies’ ongoing compliance issues with the Wyoming Department of Environmental Quality.
After the OGCC staff’s recommendations, testimony, and after a four hour hearing that included Presley’s rebuttals and an executive session to hear more details of his financing plan, not one of the five members of the OGCC commission — including Gov. Matt Mead — believed Presley and his companies are up to the task of turning on coal-bed methane wells to produce enough cash flow to finally begin making good on debts and regulatory requirements. But they gave him 120 days to give it a go anyway.
After the commission’s decision, commissioners Doelger and Drean told WyoFile they saw no harm in granting Presley more time to come up with cash and credit to post additional bonding within the next 120 days, expecting he likely will fail.
Commissioner Bridget Hill, who also serves as director of the Wyoming Office of State Lands and Investments, said the commission will not entertain another hearing of the Patriot and High Plains case. The matter is in the hands of the OGCC staff with the direction of the commission that the companies will pay $20,000 in fines within 30 days, post upward of $6 million in additional bonding in 120 days, or lose their wells.
“It’s not coming back in 120 days to talk to us more.” Hill told Presley.
I hope so been here a while and haven't seen much I liked yet
Didn't see anything new, but maybe it's just me missing something. 8 days left til the hearing with the Wyoming Oil and Gas Conservation Commission, should be interesting to see what happens!
For the life of me, I'll never understand the mentality of a complacent exec.
Case in point: HPGS.
There is chartable momentum on the stock yet for the most part, the execs are keeping "mum".
I'm not an advocate of mindless "pumping" but good God...share developments with investors WHILE the iron is hot.
Until Pressley gets his head out of his arse and begins a transparent campaign to bring value to investors I will be a staunch antagonist.
Looks like some new stuff on the web site not sure in the about section
yikes ! just read the article .. run forest ..run !!
Maybe when you can write a intelligible, coherent thought, others will listen.
A few years back...HPGS wasn't a penny stock.
They got buggered by the economy and in my opinion, they made catastrophic choices without having the time or the cash to vet those choices.
A new management is at the helm. I don't agree with them and the choices they're making regarding visibility...but I don't have to.
Fact is this:
There are substantial headwinds with HPGS...if they can clear the hurdles that lay ahead this stock will soar... And I mean the "soar" type of soar that will make anyone who didn't buy always regret it.
Read my posts. I'm no pumper. I've been hyper critical of HPGS and other companies. I'm able to disconnect emotion and look at a stock and say "this is crap" or "this is golden" regardless of my position, past or current, with them.
HPGS is golden.
Own it? Hold it.
Don't own it and are thinking of it? I think there are worse decisions that you could make to buy it.
Me? I own it. And I think it's going higher near term... Long term.
I bought this stock 2 years ago lost some money and I learned MY lesson "THESE PENNY STOCKS ARE ALL SCAM "
dont listen to those people , they are getting paid to say that
IMO.
You are absolute right; looking at the chart; nice triangle; looks like it will break out but I am not buying....looks like there are blocks people can't even see...... DO NOT BUY THIS
First, let me say I recognize that a few people on this board may have bought this stock years ago and lost substantial value...
If you're reading this, and the above mirrors you, please don't allow pre-existing bias cloud your ability to see what is coming:
This stock is about to become one of those penny stocks that 99% only hear about "after".
A r/s coming? Yup... Read my posts on this message board..I've acknowledged and described numerous stumbling blocks which lay ahead. It'll be entirely up to Presley and others to mitigate those...
But what else lays ahead? 3000 producing wells lay ahead...the costs of making those wells produce, easements, land leases, oh my oh my those are substantial costs.
So how will they pay these costs? With stock of course.
At today's stock price and A/S, O/S it's virtually unthinkable that they'll have enough stock to fund these endeavors...
Now we know a r/s is coming and so does EVERYONE... It's in their latest filings...
So what can happen first, ahead of an R/S that will provide nearly immediate relief for cash needs?
A stock pump (whether or not it'd be nothing more than a pump and dump remains to be seen).
One little press release boosted the stock price from $0.0073 to current prices... What will happen if/when Presley begins issuing substantive Press Releases en masse?
A $0.10 cent stock? A $0.30 cent stock? Higher?
So if you own this and are selling it now, you will likely see it in the near future at prices far higher than where you sold.
If you don't own it, or don't own enough, you'll likely wish you owned more.
Me? I own it. I have owned it.
My cost average is $0.0023 so yes, I'm talking my book but even with 600% gains I'm not selling. I've seen the writing on the wall. I know what Presley NEEDS to do and what he recognizes he MUST do..and while yes, I've been critical of Presley and I'm critical of the R/S, I know that Presley will do what needs to be done to raise the share price and give HPGS access to sorely needed capital.
Take it for what it's worth...just promise yourself to not be part of the 99% who find themselves wishing they'd known about HPGS ahead of the move.
"During the three months ended September 30, 2012, oil and gas revenues decreased to $nil from $2,784,663 for the corresponding prior period. The effects of realized hedges only include settlements from hedging instruments that were designated as cash flow hedges. Production volumes decreased to nil Mcf for the three months ended September 30, 2012 from 1,129 Mcf for the corresponding prior period. Decreases are due to shutting in our natural gas producing assets during the period ended June 30, 2012."
$2.7 mil revenue fore the previous 3 months indicates when they reopen the values, revenue flow could be meaningful.
Don't know anything other than what the filing said.
The terms of the acquisition are substantially as follows:
The Agreement requires that the Company complete a 1 for 1,000 reverse split of High Plains Gas common stock. Upon completion of the reverse stock split, High Plains Gas will have approximately 305,000 shares of common stock outstanding. Pursuant to the merger, High Plains will issue to Chama shareholders 25,000,000 shares of High Plains Gas stock. High Plains Gas assumes approximately $4,000,000 in obligations owed to previous shareholders of RWM Resources, Inc. that was previously owed by Chama.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9269686
"...but our intention is to produce all 3,000 wells within 18 months.”"
ie they're not currently producing, but hope to be within 18 months.
"...it has the GOAL of being current with all of its filings this summer."
ie they're not current, but hope to be by this summer
You need help learning to do your own DD don't you?
From RS PR...
"The Company has not be able to complete the reverse split because the rules of FINRA require that the Company be current in its financial reporting obligations. Upon completion of the reverse stock split, we will have approximately 305,000 shares of common stock outstanding."
From yesterdays PR...
"In addition, the company reports that it has the goal of being current with all of its filings this summer."
Must hurt not being able to comprehend what's in front of you, hmm?
Helps to learn how to read . It says "if" they go current geeze . And the company cannot complete the RS lol . What part of cannot complete a RS means that there will be and RS . With your knowledge you think that is you cannot complete a marathon that you will come in first place .
With your way of thinking you thnk that if you cannot lift a 5lb weight you will win mr Olympia !
Learn how to read bro
OUCH,that really sucks,so w/ 100k shares that leaves one w/ 100 shares am I correct @ that.....any one?
RS link... helps to do your own DD
http://biz.yahoo.com/e/140430/hpgs10-q_a.html
RS 1:1000 coming, doesnt sound good to me.
Outstanding news today!
I'm no Oil and Gas wizard, but that sure did sound like some amazing news here today, congrats.
Has anyone contacted the company to get any additional info?
agree, big push is coming, great news, no frontloading, thin on the ask, any idea about the float for HPGS
great summary on HPGS, thx a lot
Yeah a move will come here in the next few days IMO
This is one of those instances where the reaction may be more significant tomorrow. There are not a whole lot of eyes on this company.
Recent history of nondisclosure, lack of PR's, and shareholder indifference has hurt awareness. The lights have been out for a long time.
Eventually, the word will get out. There is a rather good story in all this. Today's PR was HUGH for this tiny company.
Hopefully, managements behavior will change toward shareholders. A bit of effort on their part, and the share price could explode, making them (and shareholders) much wealthier.
I saw a wee bit of activity before today's announcement. But, looks like this is not a stock which is being manipulated or traded unfairly. A big plus, in my book, regarding future trading and activities.
We will see, but I like the risk and reward equation for HPGS today. If management delivers, things could really be good for a long time to come.
According to OTC, HPGS has 304,723,894 shares outstanding, with an unknown amount in float. One would have expected more robust volume today, based on the news. Could be most of the shares are closely held. Don't know for sure. Will be more information as management gets current on its SEC filings. I still anticipate some more significant trading activity in the coming days, weeks, and months. I base this on the share outstanding count, and statements in today's PR indicating much more news to follow (reading between the lines).
Hopefully, today's PR is a sea change in the way management is going to conduct itself in the future. One of the biggest criticisms has been lack of disclosure. According to the PR, there should be many newsworthy, and positive, events on the upcoming calendar.
HPGS also needs to clean up its balance sheet. Still too many liabilities, but wells should be brought on line cheaply, with near instant revenues. The infrastructure is still in place (wells, pumps, piping, etc.). Also, HPGS has additional infrastructure which is not being used, this from their poorly run (to date) construction and maintenance arm.
Another huge aspect of the company rests with their patented technology for enhancing production in certain types of wells (coal methane beds being one type). Their process is to inject microbes and water into wells. The microbes do what they do naturally and break down the organics (coal), and produce as a byproduct methane. This is an interesting technique, and eliminates the need for fracking and the pumping of masses of water into and out of wells. There would seem to be many environmentally friendly aspects to this: 1) No chemicals, 2) no waste water, 3) no fracking, and 4) enhances natural gas production making marginal wells profitable, and increasing the value of certain types of wells.
Today's news appears to be "BIG", with little reaction from the markets. I am hoping that much more good news will follow. I think I can see where the new management is going with HPGS, and I think they have a fairly good chance for success. If so, this could see many multiples in price appreciation to come.
I think past silence from management has hurt investor confidence. Hopefully, todays PR is the beginning of many to come. Getting current on their SEC documents, getting wells into production, possibly getting into new deals involving their microbe technology, new acquisitions, revenues, profits?, the list could be long indeed. Time will tell, but today is the beginning of something. Good, I hope.
300T hit at 0,015, ask ut to 0,0165 for HPGS
any idea, why no more movement on this good news for HPGS
The rise of the Phoenix. From nothing, to something (potentially) substantial. If their proprietary technology is successful, these marginal wells will be producing for some time, and in a meaningful way. They have the infrastructure, they have the wells, they have a contract, and apparently were successful in the acquisition. If, the production produces significant cash flows, they could grow organically. Lots of other properties with problem wells waiting to be revitalized. Last I checked, low float.
Getting accumulation quickly on News
HPGS company expects to begin producing gas immediately.
This is a promising Press Release - High Plains Gas Announces Completion of Gas Marketing Agreement
May 29, 2014 12:39 PM Eastern Daylight Time
GILLETTE, Wyo.--(BUSINESS WIRE)--High Plains Gas, Inc. (“High Plains”) (symbol HPGS) announced that the company has signed a contract to sell natural gas from their coalbed methane wells to United Energy Trading of Lakewood, Colorado. Terms of the agreement have not been released, but the company expects to begin producing gas immediately.
“We will start producing wells on a small scale, but our intention is to produce all 3,000 wells within 18 months.”
High Plains filed an 8-K on March 3, 2014 disclosing the acquisition of approximately 1400 coalbed methane wells from Luca Technologies, Inc. Per the agreement, High Plains Inc. acquired all member interest in Patriot Energy Resources LLC and Patriot Energy Gathering LLC. The acquisition has cleared Bankruptcy court and High Plains has now taken possession of the wells. Including the Patriot wells, High Plains Gas, Inc., now owns approximately 3,000 coalbed methane wells and expects to begin production in immediately. High Plains’ CEO Ed Presley adds, “We will start producing wells on a small scale, but our intention is to produce all 3,000 wells within 18 months.”
On March 28th, 2014, High Plains filed its 10Q for the third quarter of 2012 in late March. The company is currently working on its Form 10-K for 2012 and expects to file the report as soon as possible. In addition, the company reports that it has the goal of being current with all of its filings this summer.
Contacts
For High Plains Gas, Inc.
Bob Mitchell, 720-226-1031
Good luck. I'm shutting down this account. I hope things work out great for you here and elsewhere.
Truthfully, these boards are not worth the hassle you get from many thin-skinned posters who report a TOS violation if you don't agree 100% with their pump or short.
Take care.
When you lose all or most of your shares due to the already announced R/S...don't come crying here.
You're hilarious. You criticize others for placing a market value on a company with at least some revenues. But you claim this stock MIGHT explode and it hasn't generated a revenue or an SEC compliant report for 2 years. Gotta love your unbiased assessments though :)
Didn't you "promise" you weren't going to comment on the other stock board "until I am back in"? I guess you bought some. Hmmm.
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Mark Hettinger has over 30 years of experience in oil and gas construction, fabrication and process equipment. Mark founded Hettinger Welding in 1980 to provide welding and fabrication services to energy companies in Wyoming. In October 2006, after 28 years as principal owner and CEO, Mark sold Hettinger Welding. Mark remained the CEO of the Hettinger companies through 2009. Mark's vision grew Hettinger to over 1,400 employees and a 200 million plus dollar annual market share, solidifying Hettinger as one of the largest oil and gas construction firms in the Western United States. In 2009, Mark retired as CEO of Hettinger to focus on oil and gas production and is an active, managing member of High Plains Gas, Inc.
Brent Cook has over 26 years of corporate finance and management experience in the Energy Industry. Prior to joining High Plains Gas, Mr. Cook served as CEO of Current Energy where he successfully negotiated and closed on the acquisition of the Gas Fields known as "North & South Fairway" assets of Marathon Oil Corporation located in the Powder River Basin. Prior to starting Current Energy, Mr. Cook served as Director of Raser Technologies beginning in October 2004, and as that company's CEO from January 2005 to September 2009 where he oversaw their listing on the NYSE. Mr. Cook was also a partner and employed from February 2002 to March 2005 by AMP Resources, a geothermal power generation company that sold and developed their projects to ENEL, an Italian power generation company. From 1996 to 2002, Mr. Cook developed and built Headwaters and served in various positions at Headwaters Inc., a large publicly-traded energy Technology Company, including as its Chief Executive Officer, President, and Chairman of the Board.
Joe Hettinger has over 10 years of experience in accounting and finance in the banking and energy industries. Joe co-authored the internal control structure for Sarbanes Oxley sec. 404 for a publicly traded bank in 2004. In 2004, Joe co-founded Rocky Mountain Development Group, Inc. where he served as the Vice President of Acquisitions and Finance through 2006. Joe became a member of the Hettinger Companies in 2007 as the Southern Wyoming Regional Manager and Director of Contract Administration. In 2008 Joe managed over 90 million dollars worth of oil and gas facility construction projects for Hettinger Companies. Joe is an active, managing member of High Plains Gas, Inc .
Jerri Hettinger is a graduate of the University of Washington where she earned a bachelor's degree in Business Administration. Jerri started her career in the oil and gas industry in 2000 with Hettinger LLC as the director of Human Resources. Since 2003, Jerri has managed all aspects of administration for High Plains Gas, Inc. including oil and gas production reporting, royalty distribution, severance tax, ad valorem tax and State and Federal mandated reporting. Jerri has considerable experience in accounting and management.
Greg Greenough started his career in the energy sector in 1983 as a Roustabout Laborer. After four years, Greg went to work for Atles Powder (Nelson Brothers) as a Blasting Technician. Several years of hard work promoted Greg to Site Manager, controlling operations at several coal mines, including Dry Fork Mine. In 2000, Greg left to join the Marathon Oil team, managing automation and measurement. During his tenure at Marathon, Greg designed well head hookups, electrical instrumentation for wells, and managed special projects. Greg's time spent in the Gillette energy sector has given him invaluable contacts as well as intricate knowledge of gas field infrastructure. Greg has been an active member of HPG since 2006 as the Operations Manager.
Al Smith is an oil industry veteran, having worked in the sector for well over 4 decades. He is currently serving as a Geological Consultant to two Japanese companies and a Houston based oil company. From 1998 to 2003, he served as the Vice President, International Business Development for EEX Corporation where he is responsible for evaluating oil exploration and production projects in Asia and Australia. He has developed and managed many relationships with government oil companies in Indonesia, Brunei and New Zealand. Prior to his time with EEX, he worked for Pennzoil Exploration in a similar capacity where he oversaw the evaluation of exploration and development projects throughout the region and was responsible for developing and managing relationships with national oil companies and financial institutions. Mr. Smith has also held positions with Inexco Oil Company, Lear Petroleum Company, Davis Oil Company, Mountain Fuel Supply Company as well as Amoco Production Company. He has a B.S. in Geology and an M. Sc. in Geology from Brigham Young University. He is a member of the American Association of Petroleum Geologists, Rocky Mountain Association of Geologists and Wyoming Geological Association.
Gary Davis, the President and Founder of Kahuna Ventures LLC, 1999, a natural gas processing, treating and project-consulting firm, has well over 32 years in the natural gas space. Kahuna Ventures currently has 40 employees, including 20 engineers and 7 field construction managers or inspectors. Previous to founding Kahuna, Gary worked at Western Gas Resources, Inc. for over 14 years. His tenure included holding such positions as Corporate Controller, Sr. Vice President of Engineering & Production, Environmental and Safety, Vice President of Southern Region and Vice President of Engineering & Environmental. During his time with Western Gas, he assisted in growing a 50-employee company into a major independent mid-stream corporation with over 950 employees and a gross income in excess of $1 billion. He has extensive experience in all project functions including due diligence, site and right of way acquisition, legal, environmental and permitting, safety and operations. He has a B.S. degree from the Colorado School of Mines (CSM) in Chemical and Petroleum Refining Engineering. He is a respected expert witness and public speaker, and is the holder of two industry-related patents
Cordell Fonnesbeck is the owner and founder of his own public accounting firm, Cordell Fonnesbeck, CPA, P.C. since 1991. It is located in Casper Wyoming and caters to small and medium sized clients in the Casper and central Wyoming area with an emphasis in tax compliance, tax planning and accounting services. He has practiced accounting for more than 39 years. From 2005 - 2009, he was the accountant for High Plains Gas, LLC, which was the predecessor to High Plains Gas, Inc. He holds a B.S. degree in Accounting from Utah State University and is a licensed Certified Public Accountant in California and Wyoming. He has been a Member of the American Institute of Public Accountants since 1974.
Through its wholly-owned subsidiary CEP-M Purchase LLC, High Plains owns the former Marathon Oil Corporation North and South Fairway Assets. These assets consist of 1,614 Coal Bed Methane wells with associated flow lines and over 155,000 net acres.
HPG has developed a 600 well recompletion plan for the property to begin in December 2010 which is projected to produce an additional 15,000 Mcf per day when complete. HPG will also drill an additional 350 wells within the Fairway leases. The Company is also actively working with gas marketing and compression firms to set additional compression capacity to handle their aggressive recompletion program in the North and South Fairway Assets.
HPG has secured the lease rights comprising the Dry Fork Project, and has drilled seven wells on this lease. These completed wells are currently in the de-water phase with three wells beginning to show gas. Other wells drilled and maintained by HPG in this area have produced marketable gas for over seven years. High Plains maintains secure control of all gas flow around the Dry Fork Project as well as to and from the Project. HPG also has current permitting approval for the Dry Fork Project.
Wyoming's Powder River Basin contains approximately 33 trillion cubic feet of recoverable natural gas, of which the Dry Fork Project will capture an estimated 37 billion cubic feet.
HPG has drilled seven wells on the Dry Fork lease as the initial step of the Dry Fork project. These wells have been enhanced via hydrolysis. These wells are de-watering at a rate of 588,000 gallons per day each. Three wells have begun to show methane, and de-watering has been controlled to maximize gas collection. All seven wells are connected to the HPG infrastructure so that all produced gas is transmitted to a point of sale.
Phase I will be comprised of 70 new wells. Drilling will begin in August 2010. Well drilling time is three days per well drilling rig at a schedule intended to minimize cost and maximize revenue. HPG will run 2 to three rigs until all 70 wells are drilled. Drilling will be completed in May 2011.
Dry Fork Project Phase II is a continuation of Phase I comprising of 83 new wells. The drilling program is scheduled to begin in November 2011. Well drilling time is three days per well at a schedule intended to minimize cost and maximize revenue. HPG will run 2 to 3 rigs until all 83 wells are drilled with drilling to be completed in June 2012.
There are a total of 57 wells in the Grams and Mills Gillette fields, with ten more wells to drill and an additional four wells in the permitting process. Seven wells have been recompleted and re-enhanced with seven more wells scheduled to begin the recompletion program. High Plains has also replaced 18 water pumps on the property as part of its unique re-enhancement plan. Production from the Grams and Mills Gillette fields was 120 Mcfpd (thousand cubic feet per day) at the time of acquisition, and has increased to 800 Mcfpd to date. All natural gas produced in these fields and delivered to the point of sale is sold at a hedge price of $5.20/MMbtu until the end of 2010. Successful re-enhancement activities have increased production on the Grams and Mills Gillette an average of 129% on wells with prior production. High Plains is proceeding with its re-enhancement activities in these fields to further increase production.
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Investor Relations Agency Contact: Lippert/Heilshorn & Associates, Inc. Becky Herrick Email: BHerrick@LHAI.com (415) 433-3777
Transfer Agent: Empire Stock Transfer Inc. Corporate Office: 1859 Whitney Mesa Dr Henderson, NV 89014 Tel: 702.818.5898 FAX: 702.974.1444
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