Three-Way Midland Basin Combination Creates $1.5 Billion E&P

The deal would create the largest pure-play northern Midland Basin E&P with a 73,000-net-acre position and 12,000 boe/d of production that is expected to more than double through 2020.

Darren

Barbee

Oil and Gas Investor

Fri, 12/06/2019 - 03:38 PM

(Source: Shutterstock.com/HartEnergy.com)

(Source: Shutterstock.com/HartEnergy.com)

A blank-check acquisition corporation will combine with HighPeak Energy and Grenadier Energy Partners II in what amounts to a shrewd workaround of the market’s stonewalling of upstream IPOs.

HighPeak and blank-check company Pure Acquisition Corp. share board members and are both led by CEO Jack D. Hightower.

The Nov. 27 deal, expected to close in first-quarter 2020, would create the largest pure-play northern Midland Basin E&P with a 73,000-net-acre position. The company said pro forma production would accelerate from about 12,000 barrels of oil equivalent per day (boe/d) at the close of 2019 to double by the end of 2020.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Need more than one account? See Group Subscription options

Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.

Recommended Reading

HitecVision in Exclusive Talks to Buy Exxon Mobil’s UK North Sea Assets

Bids for Exxon Mobil's British North Sea oil and gas fields, which were expected to fetch about $1 billion, were due on Oct. 28, sources say.

Op-ed: Another Look at SEC Investigation into Exxon’s Permian Valuation

Steve Hendrickson, petroleum engineer and RED President, discusses the SEC’s investigation of Exxon Mobil’s proved reserves disclosures in the Permian Basin and how changes to assumed drilling times can increase estimated value.

TC Energy to Cut 1,000 Jobs, Halt Keystone XL Pipeline Work

U.S. President Joe Biden’s decision to cancel the Keystone XL permit is likely to be the project's death knell, after more than a decade of legal battles and shifting fortunes.