High Plains Gas terminates purchase & sale agreement with Huber Energy

High Plains Gas Inc. has terminated the purchase and sale agreement with Huber Energy to acquire its Powder River Basin natural gas assets, according to a news release.

Term of the agreement, including all amendments, required the completion of purchase of the specified assets on or before July 29, 2011.

“We worked diligently to finalize closing terms acceptable to both parties but we could not come to an agreement. Therefore, this transaction will not be completed,” High Plains Gas CEO Brent Cook said.

Cook continued: “We remain focused on operating assets we own and in growing our business through organic drill-bit growth, through our successful Coal Bed Methane (CBM) well-reactivation strategy on our Fairway acreage in Wyoming, and through selective acquisitions. While we are disappointed not to close this particular transaction, our existing assets provide us with sizable production and reserves as well as organic growth potential through well reactivations. The Board and management remain committed to our strategy of seeking assets that we believe are undervalued as we believe these are the opportunities to add value for shareholders.”