HighPeak Energy and blank-check company Pure Acquisition Corp. agreed to a new business combination on May 4 following a scuttled three-way merger agreement with private-equity-backed Grenadier Energy Partners II.

Previously, the duo, which share board members and are both led by industry veteran Jack D. Hightower, had agreed to acquire Grenadier, backed by EnCap Investments LP and Kayne Anderson Capital Advisors. The combination was expected to form the largest pure-play northern Midland Basin E&P with a 73,000-net-acre position.

The crash in oil prices, however, forced a renegotiation of terms and, citing “current market uncertainty,” the companies agreed on April 24 to terminate the combination, according to a filing with the U.S. Securities and Exchange Commission.

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