High Plains Gas, Inc. (OTCBB: HPGS) announced today results for the fourth quarter and the fiscal year ended December 31, 2011.
The Company recognized revenue for the fourth quarter ended December 31, 2011 of approximately $7.0 million. Contributing to the substantial increase of quarterly revenue was the energy construction and field maintenance services segment, comprised of Miller Fabrication, LLC and HPG Services which accounted for approximately $5.0 million.
Revenues for the fiscal year ended December 31, 2011 were approximately $17.2 million as compared to approximately $2.6 million during the corresponding period 2010.
Fourth Quarter and Fiscal Year Ended 2011 Financial Results:
The Company recorded a net loss applicable to common shareholders for the fiscal year ended December, 31 2011 of $57,500,596 compared to $5,483,487 in the corresponding 2010 period. Contributing significantly to the net losses incurred in 2011 were losses recorded in connection with “nonrecurring” and “non-cash items”. Specifically, these losses included approximately $8.7 million related to depletion, depreciation, and amortization, approximately $3.5 million in amortization of bond commitment/finance fees and accretion of asset retirement obligations, approximately $4.1 million in losses incurred in connection with abandonment of gas properties, approximately $18.9 million in impairment charges related to our gas properties and other intangible assets, approximately $2.4 million in charges related to share-based compensation and the issuance of equity instruments, approximately $2.6 million in losses related to the change in fair value of marketable securities offset by unrealized gains on our commodity hedge, and finally approximately $8.3 million loss on extinguishment of debt.
Brandon Hargett, CEO of High Plains Gas mentioned, “We are pleased with the results of our fourth quarter revenue numbers, and hope that this provides the shareholders with a glimpse into the future of High Plains Gas. The acquisition of Miller Fabrication, LLC in the fourth quarter of 2011, our energy construction and field maintenance services division, continues to grow and expand at a healthy clip helping the segment realize over 71% of the Company’s revenue in the fourth quarter.”