Posted: Feb 13, 2007

PRB Gathering, Inc., a Subsidiary of PRB Energy, Inc., Enters into Lease Agreement for Gas Compression in the Powder River Basin

PRB Gathering, Inc., a subsidiary of PRB Energy, Inc. today announced that it has entered into a five-year lease agreement effective January 24, 2007 with J-W Power Company. Under the terms of the agreement, J-W will supply PRB with gas compression equipment and related services. The compression equipment will service PRB's gas gathering pipelines in the Powder River Basin.

Under the terms of the agreement, J-W will lease to PRB two 1,680 HP reciprocating compressors and ten 360 HP centrifugal compressors. PRB had been leasing the compressors from a gas gathering operator as part of an operations agreement in which back-office services were also provided. PRB facilitated the compressor purchase and sale to J-W Power Company.

William F. Hayworth, PRB's President and COO stated, "This acquisition enables us to gain control over our Gap and Bonepile operations and to contain costs. It also provides us with the necessary equipment to manage the growth of our Recluse gathering system."

Robert W. Wright, PRB's Chairman and CEO, noted, "This was an opportunity to lock in a number of scarce, business-critical assets at a fixed rate without having to make a large upfront capital investment."

"We are very excited about this opportunity to provide compression for PRB Gathering. Though a relatively new company, their management team brings extensive Rocky Mountain production and gathering experience to their enterprise. We look forward to a long and beneficial relationship for all parties involved" commented Chris Carter, Manager of the Rocky Mountains Region for J-W Power Company.

J-W Operating Company is a privately-held energy company composed of five primary business lines specializing in energy services and energy development. J-W Operating Company has over 1500 employees located in 50 offices throughout the mid-continent area. Headquartered in Addison, Texas, the Company has regional offices in Arkansas; Texas; Colorado; Oklahoma; Louisiana; Kansas; Utah; North Dakota; New Mexico; West Virginia; and Wyoming.

FOR MORE INFORMATION:

John A. Daniels
J-W Operating Company
Business Development Manager
972-233-8191
jdaniels@jwoperating.com