After the share price of High Plains Gas, Inc. (OTC:HPGS) had fallen through a number of support levels, on Friday the next in row stock promotion managed to raise HPGS back to $1 for a share which could again serve as a level of support. 
HPGS closed Friday session at exactly $1, representing a 17.65% increase from the previous closing price. Yet, it looks like the new advertising newsletters that were sent early before market open on Friday did not have the expected effects on the volume. Only about 75,500 share got traded for the whole session, which barely exceeds the 30-day average. That new promotion was paid by a third party and it cost $15,000. The promoter does not mention how long the campaign will continue, thus it was probably just for the day.
At the beginning of the month, High Plains Gas postponed one more time the closing date of the Huber Purchase Agreement to May 31, 2011. Further, according to the amendment the company will deliver
an additional 500,000 shares of restricted stock as consideration for the new extension. Upon closing, the seller J.M. Huber has the option to either keep the shares and lower the purchase price by $500,000, or return them to the company. The total purchase price of the transaction is remains $35 million.
In April High Plains Gas filed its 10-K for 2010 and it revealed the dire financial condition of the company. Last year HPGS has entered into a new credit facility with a bank for up to $75 million and has borrowed $6 million under that facility to finance the Pennaco Acquisition.
That amount has been outstanding as current liability as of end-December 2010 due to debt covenant violations. Thus, HPGS had working capital deficit of $4.1 million at the end of last year, and another $15 million in long-term debt. Oil and gas revenues from the acquired last year producing wells were $2.46 million and the net loss for the quarter exceeded $5.4 million.
