PRB Gas Transportation Inc. has purchased Storm Cat Energy Corp.’s (SCU) gathering assets in Campbell County, WY, near Recluse for $1 million. PRB will provide gathering and compression for Storm Cat’s Recluse-area development properties, which encompass 6,600 gross acres. Storm Cat estimates that these properties currently produce about 3 MMcf/d with production expected to increase to 7 MMcf/d in 2006. Both companies are based in Denver. “This presents an excellent opportunity for PRB to grow its gathering business with SCU’s production, third party producers and from production generated by our own drilling operations,” said PRB CEO Robert Wright. “As this purchase is effective Jan. 1, 2006, the agreements with SCI will have an immediate positive impact on our operating results. We began to sell natural gas and provide management services during the latter part of 2005. We expect that these three new revenue streams will have a very positive impact on our financial results as compared to prior periods.”

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