High Plains Gas, Inc. (OTC: HPGS) today announced its well reactivation schedule for the third quarter of 2011. The schedule includes the Company’s intentions for well reactivations within the Fairway methane fields located in the Powder River Basin of Northern Wyoming, which were acquired from Marathon Oil in November 2010. The Company will remain focused on reactivating fields to produce marketable natural gas within the third and fourth quarters of 2011.
Mark Hettinger, Chief Operations Officer for High Plains Gas, said, “Our intention is to bring more gas to market to take advantage of higher natural gas prices. We plan to strategically bring wells into production based upon the availability of compression and pipeline infrastructure for each field. This does not differ from our current operations, but we plan to accelerate the rate at which we put these wells into production. Our goal has been to reactivate 30 wells per month throughout 2011, but we plan to spend the third quarter activating wells at double that rate or more.”
The following is a summary of the Company’s third quarter 2011 reactivation schedule:
The Hank Williams, Wild Horse and Middle Prong fields are currently expected to be returned to production in the third quarter. The Hank Williams and Wild Horse fields have 175 wells that qualify to return to production at a total estimated production value of 1.3 MMCFPD. The fourth quarter return to production includes House Creek. Initial reviews of the House Creek area have identified 45 wells with immediate potential to return to production. Cates Draw in the Arvada field has 13 wells identified in the Cates POD that are excellent candidates for recompletions in the third quarter, and the Company expects to bring them into production beginning in the fourth quarter.
Joe Hettinger, Chief Financial Officer for High Plains Gas, said, “Our field operations team has done an excellent job of controlling costs and staying within budget for well reactivations. Our plan to increase our well reactivation rate is partly due to the success our operations team has experienced, and we expect that this success will continue, enabling us to spread our fixed costs over greater production and at a nominal variable cost increase.”
About the Company
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 CEP – M Purchase LLC, which currently owns 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.
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.
High Plains Gas, Inc.
P.O. Box 1564
Gillette, WY 82717
IR Agency Contact:
Lippert/Heilshorn & Associates, Inc.
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