Since last Wednesday the stock of High Plains Gas, Inc. (OTC:HPGS) is rapidly climbing down from the 6-month high hit on promotions and released earnings. Yesterday, it even looked like it would try to fall through some support levels, but today the promotions will not come too short as well to support some traders’ hopes that HPGS will soon get ready for AMEX listing. 
Although HPGS is as of yesterday even more far away from the needed $2 level, traders should not lose the hope. Yesterday evening, a new set of promotions was launched to help the stock go up again. Unfortunately, the promoters could only remind about the announced last week huge revenues for the first quarter of the year, news that shot HPGS up to almost $1.50 for a share.
Many have not been that optimistic already on Thursday last week, and as the chart shows, they were right. Yesterday was another “ugly” day with HPGS closing at $0.89 with a decrease from the previous session. Yet, the new promotions could put an end to the decline. The third party has paid $40,000 to increase the public awareness, and maybe return the share price back to the $1 level.
An SEC filing from last week states that the company’s shareholder meeting will be held on June 29 and among the matters to be voted is the election of five new directors. There is more than a month up to that date and if HPGS does not issue some milestone news soon, for example the closing of the Huber agreement, the promotional effects might be much smaller than before. The company’s current market cap of more than $148 million looks too high, even though HPGS is a producing oil and gas company.
According to the company’s balance sheet, as of end-March this year High Plains Gas oil and gas properties properties had a book value of around $41 million, $25.5 million of proven properties and $17.3 million of unproven properties. At the same time, the company’s working capital deficit goes over $15 million, which makes it inevitable to seek for outside sources of capital this year.
