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.

(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.

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Darren Barbee

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