Fort Worth-based HighPeak Energy said recently it is altering its 2023 drilling and completion plans and dropping from four to two rigs next month for the remainder of 2023. HighPeak had already reduced its completion activity from four crews to two “to complete the operational DUC wells generated by the previous six-rig program.” The revised plan is expected to reduce 2023 capital expenditures by about $250 million from the original budget. HighPeak operations are focused in Midland Basin.
In early 2024 HighPeak expects to return drilling activity to four rigs and maintain two completion crews. Production for 2023 is forecast for 45,000-to-51,000 boed and for 2024 it’s 60,000-to-66,000 boed. Capex is forecast at $950 million-to-$1.036 billion for 2023 and $870 million-to-$930 million for 2024. Production for Q1 was 37,222 boed (85 percent oil). HighPeak ended Q1 with 64 gross (61.3 net) horizontal wells in various stages of drilling and completion.
Jack Hightower, chairman and CEO, said May 10, “Slowing down our development cadence for the remainder of the year while maintaining production guidance close to our initial range is a testament to the high quality of our asset base.”