high plains gas otc:nxpn

January 18 2011

HIGH PLAINS GAS, INC.

OTC:NXPN

Symbol NXPN

Exchange OTC

Current Price 1.04

52 Week High/ Low 0.15 – 6.20

Shares Outstanding (in mn) 88

Market Cap (in $ mn) 65

Recommendation:

Strong Revenue for Q4 2010 and Q1 2011

expected after the Marathon Acquisition.

Price Target $6 in 2011

Management from NYSE Companies

Strong Buy under $3

New acquisitions may speed growth

Key Developments:

Current Production: ~17,000 Mcfpd –

Gross/~13,600 Mcfpd-Net

1,614 Coal Bed Methane wells with associated flow

lines, over 155,000 net acres and approximately

17,000 Mcfpd gross methane production.

$108m Expected Revenue in 2011

Increasing Gas Prices

Expanding Production

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. Through its wholly

owned subsidiary CEP – M Purchase LLC, the Company own

& South Fairway Assets.

These assets consist of 1,614 Coal Bed Methane wells with associated flow lines, over 155,000 net acres

and approximately 17,000 Mcfpd gross methane production.

This, combined with the company’s existing 92 natural gas wells gives High Plains a strong foundation in

the natural gas industry. High Plains Gas (“HPG”) will pursue other expansion opportunities for the

profitable production and transmission of natural g

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.


development and production of natural gas primarily in the Powder River Basin. Through its wholly

M Purchase LLC, the Company owns the former Marathon Oil Corporation North


and approximately 17,000 Mcfpd gross methane production.



profitable production and transmission of natural gas.




development and production of natural gas primarily in the Powder River Basin. Through its wholly-

s the former Marathon Oil Corporation North






Coal Bed Methane Industry Overview

Once a nuisance and mine safety hazard, coal bed methane (“CBM”) has become a valuable part of our

Nation’s energy portfolio. CBM production has increased during the last 15 years and now accounts for

about a twelfth of U.S. natural gas production.

As America’s natural gas demand grows substantially over the next two decades, CBM will become

increasingly important for ensuring adequate and secure natural gas supplies for the United States.

CBM is the gas found in coal deposits.

It consists mostly of methane but may also contain trace amounts of carbon dioxide and/or nitrogen.

Most coal beds are permeated with methane, and a cubic foot of coal can contain six or seven times the

volume of natural gas that exists in a cubic foot of a conventional sandstone reservoir.

The contiguous United States is estimated to have CBM in-place resources of 700 trillion cubic feet (Tcf),

of which 100 Tcf may be economically recoverable.

The most prolific basins exist in the western United States, but eastern areas of the nation also have

notable reserves of CBM. Other areas that have significant CBM potential include Alaska and the Illinois

Basin.

The Power River Basin has an estimated 33 Tcf of recoverable natural gas. About 8% of total natural gas

production in the United States is produced from coal beds.

In 2007, Powder River Basin coalbed methane fields produced 442 billion cubic feet of gas, making the

field the 3rd largest source of natural gas in the United States.

Company Operations

Through its wholly-owned subsidiary CEP-M Purchase LLC, HPG 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.

Asset Highlights

Current Production: ~17,000 Mcfpd – Gross/~13,600 Mcfpd-Net

Over 1,600 Coal Bed Methane Wells

Acreage Position: 155,000 Net Acres (>90% Held by Production)

Average Working Interest: 97%

Average Net Revenue Interest: 80%

Upside Potential

Up hole recompletions

~40,000 undeveloped acres

Deeper coal potential

Multi zone completions

Additionally, HPG maintains seven other active leases: Stone Pile, Reeves, Foundation Pod, RAG Pod,

Grams, Mills Gillette and the Dry Fork Lease. Each lease contains multiple wells, ranging in development

from newly drilled to producing wells.

HPG has maintained a 98% successful rating across all current wells by managing geological surveys,

knowledge of coal-washouts and sour-methane treating techniques.

HPG maintains 92 producing wells with all of the 92 producing wells selling marketable natural gas. In

addition, seven wells have recently been drilled on the Dry Fork lease, but are in the de-water phase.

However, until recently, the majority of those wells were not connected to a transmission line.

Now, the Company is devoting its attention to connecting wells to its infrastructure with nine of the 24

producing wells selling marketable gas. By 2011 year end, all currently producing wells will be connected

to the HPG infrastructure. As drilling has proved successful, each newly added well will be connected to

the HPG infrastructure within 30 calendar days of well completion.

HPG upholds growth as a core value. In preparation for upcoming growth, HPG owns an inventory of gas

related equipment and material. Current average well depth is approximately 280 feet. At this depth,

HPG owns sufficient well casing to cover 20 wells. HPG owns 36 additional well site equipment packages.

Finally, HPG has an inventory of eight miles of 8-inch transmission line. These, when combined with the

infrastructure installation equipment, provide a visible asset base and allow HPG to continue to grow

production and revenue.

Existing High Plains Gas Projects

Management Team

Brent M. Cook, CEO

Brent Cook has over 26 years of corporate finance and management experience in energy companies.

Before joining High Plains Gas Mr. Cook was President of Current Energy.

Mr. Cook was Director of Raser Technologies (NYSE:RZ) beginning in October 2004, and served as that

company’s CEO from January 2005 to September 2009.

Mr. Cook was also a partner and employed from February, 2002 to March, 2005 by AMP Resources, a

geothermal power generation company that recently 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. (NYSE: HW), a large publicly-traded energy technology company, including as its chief

executive officer, president, and chairman of the board of directors.

Prior to his joining Headwaters Inc., Mr. Cook was director of strategic accounts, Utah operations, at

PacifiCorp, which operates as a local electric utility in seven western states.

Mr. Cook spent 12 years at PacifiCorp with specific expertise in transmission interconnection and power

sales agreements. He has been active in the energy markets for many years and has great familiarity with

fuel supply arrangements.

Mr. Cook has over 12 years experience in overseeing publicly traded energy and energy services

companies and in establishing them on major stock exchanges.

Mark Hettinger, Chairman

Mark has over 30 years experience in the oil and gas industry. In 1979, Mark founded Hettinger Welding,

one of the largest energy-industry constructions firms headquartered in the West. Mark continued to

serve as CEO and grew the company from one welding truck to a team of over 1,500 employees. In 2006,

Clearview Capital partnered with Hettinger to continue growing this company.

In 2008, Mark stepped down as CEO to start High Plains Gas, an oil and gas development company

located in Gillette, WY. He continues to actively serve on Hettinger’s Board of Directors.

Mark Skousen, Chief Financial Officer

Prior to joining High Plains Gas, Inc., Mr. Skousen served as CFO of Current Energy where he was very

instrumental in closing the acquisition of the Gas Fields known as the Pennaco Energy “North & South

Fairway” assets located in the Powder River Basin.Prior to joining Current Energy, Mr. Skousen was head

of Investment Banking for HighMark School Development where he capitalized school development

projects across the county. Prior to joining HighMark, Mr. Skousen co-founded and was the president of a

financial services Mortgage Company for six years where he helped generate $20 million in funded loan

volume per month resulting in over $100 thousand per month in top line revenue.

Summary

High Plains Gas is uniquely positioned to grow to become a major producer of natural gas in the Powder

River Basin of Wyoming. The Company is aggressively pursuing large gas fields for acquisition in the

region and has extensive expertise in the re-enhancement and refurbishment of gas wells to maximize

production output. High Plains is also in a strong financial position to fund its acquisitions.

The High Plains management team brings decades of experience and a history of success in the energy

sector and strong relationships in the Powder River Basin to further facilitate growth and execution of

their business plan.

Along with lease acquisitions, High Plains is also pursuing complimentary businesses in the oil and gas

services sector to increase its asset base as well as its profitability and shareholder value.

In the News

High Plains Gas Inc Gas Enters Into Purchase And Sale

Agreement To Sell Natural Gas Wells To Duramax Holdings,

LLC

Friday, 10 Dec 2010 05:20pm EST

High Plains Gas Inc annopunced that it has signed a Purchase and Sale Agreement with Duramax Holdings, LLC to sell various gas properties and related assets from its North Fairway assets for a purchase price of $5.3 million. Additionally, High Plains has entered into a Contract Services Agreement to operate the wells associated with the sale for Duramax. These assets include approximately 350 natural gas wells spread over five different fields in the North Fairway lease. Production from the wells is estimated to be less than 17% of the total current North Fairway production.

High Plains Gas Inc Signs Letter Of Intent For Strategic

Investment In Big Cat Energy Corporation

Friday, 10 Dec 2010 01:06pm EST

High Plains Gas Inc announced it has signed a Letter of Intent to make a strategic investment in Big Cat Energy Corporation. Big Cat Energy is the supplier of the ARID Aquifer Recharge Injection System for environmentally friendly coal bed methane production. High Plains Gas will acquire 20,000,000 restricted shares of Big Cat Energy common stock and warrants to acquire an additional 10,000,000 restricted shares of Big Cat common stock.

Big Cat Energy Corporation Announces Letter Of Intent For

Strategic Investment From High Plains Gas Inc

Friday, 3 Dec 2010 08:45am EST

High Plains Gas Inc announced that Aquifer Recharge Injection System for environmentally friendly coal bed methane production, announced the execution of a Letter of Intent for a strategic private placement investment from High Plains Gas Inc. (High Plains). The Letter of Intent provides for High Plains to acquire 20,000,000 restricted shares of Big Cat common stock with share purchase warrants to acquire a further 10,000,000 restricted shares, exercisable for $0.15 per share. The purchase price of $600,000 consists of a combination of $200,000 cash and $400,000 of restricted shares of High Plains to be issued to Big Cat valued at a per share price of 75% of the volume weighted average trading price of the High Plains shares during the five days prior to the execution of a Definitive Agreement. Exercise of the warrants to receive common

shares would result in a potential additional $1,500,000 investment by High Plains. On closing of this transaction, Big Cat will also nominate a High Plains representative to the Company's Board of Directors. The transaction is scheduled to close by mid December 2010.

High Plains Gas Inc Acquires 100% Of North And South

Fairway Assets Gas Field From Pennaco Energy, A

Subsidiary Of Marathon

Monday, 29 Nov 2010 09:55am EST

High Plains Gas Inc announced that it has finalized the acquisition of 100% interest in the North and South Fairway Assets spanning 155,000 net operated acres of coal bed methane properties. High Plains has exercised its previously announced option agreement to acquire the remaining 49% interest in CEP M Purchase, LLC from Current Energy Corporation, which effectively acquires 100% of CEP M Purchase and thereby acquiring the Fairway Assets.

CEP M Purchase LLC, A 51% Owned Subsidiary Of High

Plains Gas Inc, Closes Transactions And Acquires 155,000

Net Operated Acres

Tuesday, 23 Nov 2010 09:49am EST

High Plains Gas Inc announced that through its 51% owned subsidiary, CEP M Purchase LLC (CEP), it has closed on the acquisition of the Gas Fields, known as the North & South Fairway assets, located in the Powder River Basin from Marathon Oil Corporation through a wholly owned subsidiary. This acquisition of coal bed methane properties represents a significant resource base and land position, encompassing approximately 155,000 net operated acres. The acquisition includes the operational capacities including flow lines, transportation rights and production wells (both active and idle). The transaction does not include any transfer of deep oil and gas rights, but is focused upon mineral rights between the surface and depth above the base Tertiary Paleocene Fort Union Formation generally above 2,500 feet. Terms were not disclosed.

High Plains Gas Inc Enters Into Letter Of Intent To

Purchase Federated Oil And Gas Spotted Horse Assets

Monday, 1 Nov 2010 11:23am EDT

High Plains Gas Inc announced that it has signed a letter of intent with Federated Oil and Gas for the purchase of their Spotted Horse asset. The agreement also includes water discharge permits for the property. The Spotted Horse lease includes 15 drilled wells with three currently producing natural gas. Upon completion of the purchase, High Plains will begin its recompletion program on

the remaining 12 wells in the lease to bring them online within 90 days of closing. There are over 30 additional drill sites within the lease.

High Plains Gas Inc Acquires Two Gas Fields

Wednesday, 27 Oct 2010 04:15pm EDT

High Plains Gas Inc announced that is has acquired two new gas fields known as the Grams and Mills Gillette in the Powder River Basin of Wyoming. The terms of the transaction were not disclosed.

Shayne Heffernan of Ebeling Heffernan www.ebeling-heffernan.com prepared this report, Mr

Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings www.heffernan-

inc.com and oversee’s trading at Heffernan Capital Management He is also Co Founder of

Ebeling Heffernan www.ebeling-heffernan.com the fastest growing Financial Services company

in ASEAN.

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Bangkok

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