2010-08-10-2010-08-10-2011-01-27

Acquired co. with coalbed-methane properties in WY & MT.

Powder Holdings LLC, an entity controlled by Scotia Waterous (USA) Inc., plans to acquire Pinnacle Gas Resources Inc., Sheridan, Wyo., (Nasdaq: PINN) for approximately $10.31 million in cash.

The purchase price is based on 30.32 million shares outstanding, priced at $0.34 per share of common stock. Approximately 72.6% of Pinnacle shareholders approved the merger.

The deal is expected to close in third-quarter 2010.

FBR Capital Markets & Co. is advisor to Pinnacle's special committee. The Royal Bank of Scotland Plc is lender to Pinnacle.

Pinnacle has coalbed-methane properties in Wyoming and Montana.