Item 8.01 Other Events.

In April 2009, Pinnacle Gas Resources, Inc. (the "Company") sold its interest in approximately 800 net undeveloped acres in the Arvada prospect in Wyoming to an unrelated third party and certain of its gas gathering assets in the Cabin Creek area of Wyoming to Big Horn Gas Gathering, L.L.C., the field operator of such assets. The Company's aggregate net proceeds from these transactions were approximately $3.2 million. The Company used part of these proceeds to repay the Company's outstanding indebtedness under its credit facility to $9.0 million as of April 14, 2009.

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