HighPeak Energy, Inc. provides generation, financial and


FORT WORTH, Texas, October 28, 2021 (GLOBE NEWSWIRE) – HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced (i) certain production and financial updates , (ii) an increase in the Company’s borrowing base and total selected commitments to $ 195 million, and (iii) the closing of several targeted acquisitions during the third quarter of 2021.

Strong points

  • The Company’s production for the second half of October will average around 15,000 barrels of oil equivalent per day (“Boe / d”), an increase of over 80% over the average production of the third quarter 2021 of 8,168 boe / d.
  • Acceleration of the development drilling program with the addition of a third rig without increasing the capital expenditure forecast for the year.
  • Price of a subscribed public offering of 2,530,000 common shares for total gross proceeds of approximately $ 25.3 million.
  • Increase in revolving credit facility borrowing base and selected commitments to $ 195 million.
  • Completed a series of targeted unrelated acquisitions comprising a total of 10,600 net acres.

Production update

The Company’s production for the second half of October will average approximately 15,000 boe / d compared to the third quarter 2021 production average of 8,168 boe / d. The Company’s third quarter production volumes were significantly impacted by the temporary shutdown of production wells during compensation well completion operations. These wells were brought back into production at the end of September and are increasing to reach pre-closure production levels. The Company expects wells drilled with the second rig to begin contributing significant production later this year and early next year.

HighPeak Chairman and CEO Jack Hightower said, “Our rate of production growth continues to increase significantly thanks to the strong performance of our wells. Production at the October exit is expected to exceed 15,000 boe / d, which is higher than our year-end exit forecast. With the current commodity price environment and the work our team has done to secure materials and equipment, we intend to extract as much current value as possible for our investors. EBITDA generated at current prices and production rates would exceed $ 350 million on an annualized basis.

The Company recently added a third rig to further delineate its Signal Peak area and accelerate development drilling at Flat Top. The addition of the third platform will not change the capital expenditure forecast for 2021. Mr. Hightower continued, “Using three platforms through 2022 would increase HighPeak’s exit rate to the average. 30,000 boe / d and the addition of a fourth platform before the end of the year would bring this rate to around 40,000 boe / d, which would be equivalent to nearly $ 1 billion of EBITDA with current margins and prices. Either way, 2022 will be a year of huge growth for HighPeak, both in terms of production levels and EBITDA. We plan to accomplish all of this while maintaining our goal of staying below one times debt to EBITDA. We intend to release more definitive production and capital expenditure forecasts later this year or early next year. “

Financial update

On October 20, 2021, the Company announced the price of its outright public tender offer of 2,530,000 shares, of which 2,200,000 primary shares and 330,000 shares granted in excess, of its ordinary shares, at the public price of 10, $ 00 per share, pursuant to a registration statement on Form S-1 (the “Registration Statement”) previously filed with the United States Securities and Exchange Commission (the “SEC”). The net proceeds of the Offer to the Company, after deducting underwriting discounts and commissions and other expenses related to the Offer, are expected to be approximately $ 23.0 million. The Company intends to use the net proceeds of this offering for general corporate purposes, which may include the acceleration of its drilling and development activities as noted above and the financing of acquisitions. additional complementary. The offer closed on October 25, 2021.

Increase the borrowing base of the revolving credit facility to $ 195 million

Based on the Company’s production growth and good well results, the Company and its lenders under the Senior Secured Revolving Credit Facility have completed the Fall Borrowing Base Review. 2021 and increased the Company’s borrowing base and total selected commitments to $ 195 million, which is a significant increase from the Company’s previous borrowing base of $ 125 million.

Update of acquisitions

During the third quarter of 2021, the Company completed a series of complementary unrelated and accretive acquisitions from various third parties primarily located in the Signal Peak region. In total, the assets acquired include approximately 10,600 net acres with an estimated average production of over 1,400 boe / d for the remainder of 2021 and direct interests in saltwater drainage wells and related infrastructure.

About HighPeak Energy, Inc.

HighPeak Energy, Inc. is an independent, publicly traded oil and gas company headquartered in Fort Worth, Texas focused on the acquisition, development, exploration and exploitation of petroleum reserves and unconventional natural gas in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.

Caution Regarding Forward-Looking Statements

The information contained in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words “believes”, “plans”, “expects”, “anticipates”, “plans”, “intends”, “continue”, “could”, “Power”, “could”, “could”, “should,” “future”, “potential”, “estimate” or the negative of such terms and similar expressions in connection with HighPeak Energy, Inc. (“HighPeak Energy”, the “Company” or the “Successor”) are intended to identify forward-looking statements, which are generally not historical in nature. Forward-looking statements are based on the Company’s current expectations, assumptions, estimates and projections regarding the Company and the sector in which the Company operates. Although the Company believes that the expectations and assumptions reflected in forward-looking statements are reasonable as they are made, they involve risks and uncertainties that are difficult to predict and, in many cases, independent of the v will of the Company.

These risks and uncertainties include, among others, the volatility of commodity prices, product supply and demand, the impact of a generalized disease outbreak, such as the 2019 coronavirus disease pandemic ( “COVID-19”), on the global and American economy. activity, competition, ability to obtain environmental and other permits and their timing, other regulations or government actions, ability to obtain third party approvals and to negotiate agreements with third parties on mutually agreed terms acceptable litigation, costs and results of drilling and operations, availability of equipment, services, resources and personnel required to carry out the Company’s drilling and operations activities, access and the availability of transportation, processing, fractionation, refining and storage facilities, the ability of HighPeak Energy to replace reserves, implement its business plans or carry out its development activities as planned, l ” access and cost of capital, the financial strength of the counterparties to any credit facilities and derivative contracts entered into by HighPeak Energy, if any, and the buyers of the production of e oil, liquid natural gas and natural gas from HighPeak Energy, uncertainties regarding reserve estimates, identification of drilling locations and the ability to add proven reserves in the future, assumptions underlying the forecasts, including production forecasts, expenses, cash flow from oil and gas sales and tax rates, quality of technical data, environmental and weather risks, including possible impacts of the change climate, risks and cybersecurity acts of war or terrorism. These and other risks are described in the Company’s annual report on Form 10-K filed with the SEC on March 15, 2021 (the “Annual Report”) and other documents filed with the SEC. In addition, the Company may be subject to currently unforeseen risks which could have a material adverse effect on it. Therefore, no assurance can be given that actual events and results will not be materially different from the anticipated results described in forward-looking statements. See “Part I, article 2. Management report and analysis of the financial situation and operating results”, “Part I, article 3. Quantitative and qualitative information on market risk” and “Part II, article 1A. Risk Factors ”in our Quarterly Report on Form 10-Q for the period ended June 30, 2021,“ Risk Factors ”,“ Businesses and Properties ”,“ Management’s Discussion and Analysis of Financial Position and Results of Operations And “Quantitative and Qualitative Information on Market Risk” in the Company’s Annual Report, for a description of various factors that could materially affect HighPeak Energy’s ability to achieve the expected results described in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only The Company assumes no obligation to publicly update such statements, except as required by law.

Investor contact:
Ryan hightower
Vice-president, business development
[email protected]

Source: HighPeak Energy, Inc.

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