2010-12-15-2010-11-29-2010-11-29

To buy CEP M Purchase LLC with 100% interest in the North and South Fairway WY assets covering 155,000 net operated CBM acres, gaining 17 MMcf/d.

High Plains Gas Inc., Gillette, Wyo., (OTCBB: NXPN) has closed the acquisition CEP M Purchase LLC from Wyoming-based parent Current Energy Corp. for an undisclosed price.

The deal includes 100% interest in the North and South Fairway assets in Wyoming spanning 155,000 net operated acres of coalbed-methane properties. The properties feature 97% working interest (80% net revenue interest) in 1,600 coalbed-methane wells with 90% of the acreage held by production. Upside includes 40,000 acres available for future development.

Production is 17 million gross cubic feet of gas per day (13.6 million net).

High Plains exercised its previously announced option agreement to acquire the remaining 49% interest in CEP M Purchase from Current Energy. It previously acquired 51% interest in CEP M Purchase from Pennaco Energy, a subsidiary of Marathon Oil Corp., Houston (NYSE: MRO).

High Plains chairman Mark Hettinger says, "With the option agreement to purchase 100% of CEP M Purchase now closed and ownership of the Fairway assets complete, we are ready to execute on our plans for this significant property acquisition. This property will be the foundation for High Plains to move forward aggressively with other acquisition targets we have identified of greater value in the basin."

Current Energy chief executive Brent Cook says, "Closing these transactions is the culmination of a lot of hard work by both teams, and takes High Plains to the next level of production in the Powder River Basin."