High Plains Gas, Inc. (OTCBB: HPGS) announced today results for the fourth quarter and the fiscal year ended December 31, 2011. Revenue Results: 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.”
Hargett continues, “While 2011 was an eventful year with significant operational and organizational challenges, we firmly believe that High Plains Gas has successfully navigated these rough waters and is poised for sustained growth and success in 2012 and beyond. As previously stated, our management team has every intention of growing High Plains Gas, Inc. into a regional leader in the energy construction and field maintenance services. Unaudited expected revenue from Miller Fabrication alone is expected to be over $6 million in the first quarter of 2012 as we shift focus and aim to win bids on progressively larger projects.”“We are optimistic that the future of High Plains Gas is bright. Moving forward in 2012, our multipronged mission remains unchanged – strengthening our balance sheet, accelerating sustainable growth, fostering a corporate culture of transparency and integrity, and excellence in service. I strongly believe that over the long run, this strategy will translate into significant shareholder value.” High Plains Gas Inc. is a provider of goods and services to regional end markets serving the energy industry. We provide construction and field maintenance services primarily to the energy and energy related industries mainly located in Wyoming and North Dakota through our subsidiaries Miller Fabrication LLC, and HPG Services. We produce natural gas from the Powder River Basin located in Northeast Wyoming through our subsidiary High Plains Gas, LLC. For additional information on High Plains Gas, please visit the Company’s website at 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.