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High Plains Gas Signs Term Sheet to Purchase BGM Buildings.

Energy Industry-Focused Building Company Strengthens HPG Services' Capabilities

GILLETTE, Wyo. -- High Plains Gas, Inc. (OTC: HPGS) signed a term sheet to acquire BGM Buildings, LLC, a construction company serving the energy industry and based in Gillette, WY. The agreement calls for the complete purchase of BGM in exchange for cash and High Plains Gas stock, with final terms to be announced at closing. This transaction is expected to close on or before October 31, 2011.

Brandon Hargett, Chief Executive Officer of High Plains Gas, Inc., commented, "This acquisition is intended to strengthen the capabilities of HPG Services by enhancing our scope of services projects and building our revenue stream. BGM, in a fairly short time of operation, has generated a strong pipeline of contracts to build structures for use in the energy industry. This is another building block of our newly-established corporate focus on leveraging our current relationships and facilities to significantly expand the revenue base provided by HPG Services. This strategy is enhanced by the BGM acquisition as well as Miller Fabrication, the LOI for which we announced on October 5th. Our Mergers and Acquisitions team expects BGM will add annual revenue of approximately $2 million and Miller Fabrication will add annual revenue of between $12 million and $18 million."

About BGM Buildings, LLC

BGM Buildings was founded by Bill Mercer in Gillette, WY in early 2011. BGM specializes in steel building construction, primarily those buildings for use in the energy industry. Year to date, it has erected buildings in North Dakota and Wyoming, and has several contracts to erect more buildings in these two states. Bill Mercer was previously employed by Hettinger Welding, LLC as the Superintendent of Hettinger Welding's Building Division and was employed by Hettinger Welding beginning in 1998. Mr. Mercer has over 18 years of experience in the construction industry.

About High Plains Gas

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 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. In 2011, the Company formed a subsidiary, High Plains Gas Services, LLC, focused on providing construction and maintenance services to the energy industry, primarily in the Western United States. For additional information on High Plains Gas, please visit the Company's website at http://www.highplainsgas.com/.

Safe Harbor

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.
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Publication:Business Wire
Geographic Code:1U8WY
Date:Oct 6, 2011
Words:606
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