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PRB Gas Transportation, Inc. Announces Second Quarter Financial Results and Provides Business Update; Conference Call on Wednesday, August 17th

Posted on: Monday, 15 August 2005, 18:00 CDT

PRB Gas Transportation, Inc., ("PRB" or the "Company") (AMEX:PRB), which began operations in January 2004 when it acquired the TOP Gathering System and became significantly larger with the key asset purchase from Bear Paw Energy, LLC in August 2004, today reported financial results for the three months and six months ended June 30, 2005. See accompanying table.

Since its April 12, 2005 initial public offering and the listing of its common stock on the American Stock Exchange, PRB reported the following developments:

-- PRB entered into a letter of intent, subject to a definitive

agreement, to develop coal bed methane properties in an area

of mutual interest in Wyoming and Montana with Enterra Energy

Trust (NASDAQ:EENC;TSX:ENT.UN)("Enterra"). Under the venture,

the Company will have the right to earn up to a 50% working

interest in certain properties of Enterra's recently acquired

subsidiary, Rocky Mountain Gas ("RMG"). The Company is working

on completing a definitive agreement with Enterra.

-- By funding and supervising the drilling of these properties,

PRB will generate two revenue streams from both gathering and

production. When finalized, the new agreement for the RMG

venture will secure PRB's current and future gathering

activities and provide greater predictability of revenue and

income. As part of its due diligence and in anticipation of

the definitive agreement, the Company has begun its drilling

program in August '05. Based on this development work, PRB

expects to begin to generate cash flow later this year from

this endeavor.

-- The Company is also in the process of completing a management

services agreement to operate currently producing properties

owned by RMG. In contemplation of this agreement, PRB has

hired nine former RMG or affiliate employees in Wyoming,

effective August 1, 2005.

-- PRB is drilling gas wells in both Wyoming and Montana and

anticipates completing in excess of 40 wells by the end of

2005. To facilitate both the gathering operations and the

drilling operations, PRB is exploring the raising of capital

through non-dilutive financing sources.

Additionally, a registration statement relating the common shares underlying the PRB Series C Preferred Stock was declared effective by the Securities and Exchange Commission earlier today. The conditions for the removal of the lock-up on these shares have been met and the underlying common shares are freely tradable upon conversion of the Series C Preferred Stock.

"We continue to make progress with our activities and are working with Enterra and Rocky Mountain Gas to finalize our joint drilling program. We are developing new gathering opportunities and plan to have a cost reduction program for our existing gathering systems completed in the third quarter," said Robert Wright, Chairman and CEO.

CONFERENCE CALL

Robert W. Wright, CEO, William Hayworth, President & COO, and William Brand, VP-Finance of PRB Gas Transportation will host a conference call on Wednesday, August 17, 2005 at 11:00 am EDT/9:00 am MDT, to discuss the subjects covered in this news release. Interested parties may participate in the call by dialing 706-679-0885. Please call in 10 minutes before the conference is scheduled to begin and ask for the PRB conference call. After opening remarks, there will be a question and answer period. This conference call will be webcast live over the Internet at www.prbtrans.com. To listen to the live call, please go to the website at least 15 minutes early to register, and if necessary, download and install any audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days.

PRB Gas Transportation, Inc. owns and operates natural gas gathering systems in the Rocky Mountain area. The Company presently owns approximately 200 miles of pipeline and is gathering coal-bed methane gas from more than 450 wells in Wyoming's Powder River Basin.

This press release may include certain statements concerning expectations for the future that are forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in the Company's Registration Statement on Form S-1 filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new information or events. PRB Gas Transportation, Inc. Condensed Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 ---------------------------------------------------------------------- Total revenue $ 678,550 $ 342,881 $1,414,157 $ 741,792 ---------------------------------------------------------------------- Expenses: Operating 384,202 221,355 874,994 440,125 Depreciation and amortization 279,540 84,097 556,994 167,733 General and administrative 466,296 172,560 727,799 261,515 ---------------------------------------------------------------------- Total expenses 1,130,038 478,012 2,159,787 869,373 ---------------------------------------------------------------------- Operating loss (451,488) (135,131) (745,630) (127,581) ---------------------------------------------------------------------- Total other income (expense) 40,396 9,275 (1,081) 12,938 ---------------------------------------------------------------------- Net loss (411,092) (125,856) (746,711) (114,643) Convertible preferred stock dividends (22,461) (154,063) (204,806) (258,459) ---------------------------------------------------------------------- Net loss applicable to common stock $ (433,553) $(279,919) $ (951,517) $(373,102) ====================================================================== Net loss per share - basic and diluted $ (0.07) $ (0.17) $ (0.14) $ (0.23) ====================================================================== PRB Gas Transportation, Inc. Summarized Balance Sheet Data ---------------------------------------------------------------------- June 30, 2005 December 31, (Unaudited) 2004 --------------------------- Cash and cash equivalents $ 9,000,100 $ 320,150 Total current assets $ 9,504,582 $ 685,000 Property and equipment, net $ 7,781,830 $ 8,136,203 Total assets $ 19,341,000 $ 11,237,028 Note payable $ - $ 1,500,000 Other current liabilities $ 328,500 $ 515,879 Total current liabilities $ 328,500 $ 2,015,879 Total liabilities $ 395,896 $ 2,080,683 Total stockholders' equity $ 18,945,104 $ 9,156,345 Total liabilities and stockholders' equity $ 19,341,000 $ 11,237,028

Source: Business Wire

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