High Plains Gas, Inc. (”HPG”) procures, produces and markets natural gas (Methane) from the Powder River Basin in Central Wyoming. Through its solid foundation and experience in the region, HPG will pursue expansion plans both within the Basin and across the area.
HPG Services, LLC (”HPG Services”) was formed in mid-2011 to provide construction and maintenance services to the energy industry in the Rocky Mountain and Great Plains regions of the United States. HPG Services intends to draw on Mark Hettinger’s industry expertise to become a regional leader in energy construction. HPG Services has recently completed projects in North Dakota and Wyoming.
Through it’s wholly-owned subsidiary CEP – M Purchase LLC, High Plains owns the former Marathon Oil Corporation “North & South Fairway” assets. These assets consist of 1,614 Coal Bed Methane wells with associated flow lines and over 155, 000 net operated acres.
Additionally, HPG maintains seven active leases; Stone Pile, Reeves, Foundation Pod, RAG Pod, Mills, Grams and the Dry Fork Lease. Each lease contains multiple wells ranging in development from newly drilled to producing wells. HPG has maintained a 98% success rating across all current wells by managing geological surveys, knowledge of coal-washouts and sour methane treating techniques.
Aside from its North and South Fairway Assets, HPG maintains 92 producing wells. Fifty-six of the 92 producing wells are selling marketable natural gas. Until recently, the majority of those wells were not connected to a transmission line. By the end of 2011, all producing wells will be connected to the HPG infrastructure. As new wells are drilled, they will be connected to the HPG infrastructure within 30 days of completion.
HPG maintains growth as a core value. To achieve its growth plans, 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 also owns 36 additional well site equipment packages. Additionally, HPG has an inventory of eight miles of 8 inch transmission line. This material, when combined with the infrastructure installation equipment provides a visible asset base to allow HPG to continue to grow production and revenue.