Fort Worth-based HighPeak Energy recently said it is acquiring Midland Basin oil and gas assets of Midland-based Hannathon Petroleum for $255 million cash and stock. The acquisition, valued at $373 million, will provide HighPeak with 18,600 net acres (100 percent operated) and about 150 net drilling locations (200 gross) contiguous to HighPeak’s Signal Peak position. Average 2022 production is 5,000 boed (65 percent oil) with an exit rate of 7,500 boed. Closing is expected in Q3.
The acquisition of assets in Howard County increased HighPeak’s total acreage to more than 91,000. HighPeak expects to maintain Hannathon’s one-rig drilling program in 2022. Updated 2022 guidance includes average production of 32,000 to 37,500 boed with an exit rate of 47,000 to 53,000 boed. Capex is $825 million to $900 million. The deal also includes Hannathon’s water infrastructure.