Yesterday, a new huge and expensive stock promotion lifted High Plains Gas, Inc. (OTC:HPGS) stock again up above the $1 level. A new six-month volume record was hit as well, unfortunately HPGS still does not seem to have the fundamentals needed for a $200 million worth oil and gas company. 
HPGS gapped up at market open and surged to $1.38 for a 84% gain from the previous day close. The stock closed then at $1.20 for a share, a 60% increase in the value, and a huge total volume of 4.11 million traded shares. There was no official news on that day, thus the action can be easily attributed to the stock promoters, just like some previous actions of that kind in the middle of last month.
The first promotional e-mails from the new campaign were launched a few minutes after market open, while the last ones went off later in the evening to keep the impact on the trading session today. Technically, HPGS could again break up above $1.40, and the promoter’s compensation suggests that this is more than desired.
It looks like HPGS is now promoted by the same promoting group as back in May this year. The e-mails were sent from various promoting websites, though their disclaimers look alike. One and the same third party is paying for the advertising program, whereby the expected total compensation might exceed $400,000.
The latest news was maybe not such a surprise. High Plains Gas Purchase and Sale Agreement with J.M.Huber Corporation got another subsequent amendment. Now, the deadline for the company to finalize the financing and to complete the closing of the purchase of Huber’s Powder
River Basin coalbed methane assets is June 30, 2011. Total purchase price remains $35 million and Huber still has the right to terminate the agreement upon written notice.
As of end-March 2011 HPGS had only $662,000 in cash and around $7.4 million in current assets, while the current liabilities exceeded $22.5 million.
