PRB Energy, Inc. Completes the Acquisition of 70 Miles of Pipeline in Recluse Area of the Powder River Basin.

DENVER -- PRB Energy, Inc. ("PRB" or the "Company") (AMEX:PRB) today announced that it has completed the acquisition of 7 segments of pipe totaling approximately 70 miles near Recluse, Wyoming in the Powder River Basin. The purchase price was undisclosed.

The combined pipelines will allow PRB to expand its gas gathering services to gas producers in the approximately 100,000 acres surrounding the pipelines.

Management plans to tie the acquired gathering assets into those purchased earlier this year from Storm Cat Energy and Clear Creek Gathering, which in turn connect to two major pipelines, one heading north and the other south. This will enable third party producers to obtain optimum commodity pricing. PRB believes that this enhancement should stimulate gas production by third parties, which PRB plans to encourage by pursuing working interest agreements with land owners and leaseholders.

While the pipelines had at one time been used in oil service, PRB intends to reconfigure them exclusively for gas gathering. The cost of adapting the pipeline is nominal compared to the potential for a recurring and increasing gas gathering revenue stream.

PRB's Chairman & CEO, Robert W. Wright, pointed out, "This acquisition together with the ...