HighPeak Energy has entered into an agreement to acquire the Howard County, Texas, assets of Hannathon Petroleum and other non-operated working interest owners.
Hannathon Petroleum is an upstream exploration and production company based in Midland, Texas. Hannathon was founded with the mission of identifying, acquiring and operating high quality assets primarily located in the Permian Basin.
The purchase consideration consists of $255 million in cash and approximately 3.78 million shares of HighPeak’s common stock. The cash portion of the consideration is expected to be funded with cash on hand and borrowings under the company’s revolving credit facility. HighPeak said it currently owns non-operated working interest in approximately 60 percent of the acquired gross acreage position.
“We began our strategic expansion in the Signal Peak area in August 2021 by acquiring a non-operated ownership interest in these assets,” said Jack Hightower, chairman and CE