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PRB Gas Transportation, Inc. Acquires Working Interest in the Termo Company's Homestead Draw CBNG Project; Presents Additional Gas Gathering Opportunities

Posted on: Tuesday, 17 January 2006, 12:00 CST

PRB Gas Transportation, Inc., ("PRB" or the "Company")(AMEX:PRB) and The Termo Company ("Termo"), a privately held company based in Long Beach, California, today announced PRB's participation in Termo's Homestead Draw CBNG Project (the "Project") near Recluse, Wyoming in the Powder River Basin. PRB will have a 9.25% working interest in the development of approximately 3,400 existing net acres and any future lease acquisitions in or around the existing leases.

Under the terms of the agreement, Termo will operate the Project and PRB has been designated the Project's preferred gas gatherer. PRB paid approximately $85,000 for the 9.25% working interest and then will prorationally share in the drilling and related expense; PRB estimates its share will approximate $1.2 million over an 18 month period. Termo, which is in the process of obtaining drilling permits, expects this development program to commence in the spring of 2006 and generate production revenue by the summer.

Commenting, Robert W. Wright, PRB Chairman & CEO stated, "With this working interest, we are increasing our participation in the very prolific Recluse area, both on the production and gathering sides of our business. This agreement complements our planned acquisition of additional assets where we should be able to increase throughput by gathering production on the Termo-controlled properties."

PRB is an integrated oil and gas exploration and development company, operating in the Rocky Mountain states. In connection with these operations, PRB acts as the driller and operator of certain properties and, as a working interest partner in other cases. It also provides gas gathering, processing and compression services on properties it operates and for third party producers.

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.

Source: Business Wire

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