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HighPeak Energy, Inc. Announces Closing of Hannathon Acquisition and Increase to the Company’s Borrowing Base
FORT WORTH, Texas, June 30, 2022 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced (i) the closing of the
About this update from Highpeak Energy, Inc.
[{"type":"text","content":"FORT WORTH, Texas, June 30, 2022 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced (i) the closing of the acquisition of the Howard County assets of Hannathon Petroleum, LLC (“Hannathon”) and other non-operated working interest owners (“Hannathon Acquisition”) and (ii) that its bank group, led by Fifth Third Bank, N.A., (“Fifth Third Bank”) has increased the Company’s borrowing base and aggregate elected commitments to $400 million. Highlights Closed the Hannathon Acquisition on June 27, 2022Cash consideration for the Hannathon Acquisition was reduced to approximately $237 million and the equity consideration was reduced to approximately 3.5 million shares of the Company’s Common Stock, net of customary purchase price adjustments, which remain subject to final post-closing settlementIncreased the Revolving Credit Facility borrowing base and aggregate elected commitments from $138.75 million to $400 million and added three banks to the Revolving Credit Facility bank group Jack Hightower, Chairman and Chief Executive Officer of HighPeak, said “We are excited to close the Hannathon Acquisition ahead of schedule which expands our operational footprint in the Signal Peak area and enables us to further accelerate development and improve efficiencies. The performance of the recent, multi-zone wells in this region continue to meet our expectations and confirm the value potential of this area and its increasing importance to our Company’s future growth profile.” Mr. Hightower continued, “We appreciate all the members of our bank group, led by Fifth Third Bank, and their continued support through the substantial increase to our borrowing base. We are excited to add three new banks to the credit facility and look forward to expanding our great working relationship going forward.” About HighPeak Energy, Inc. HighPeak Energy, Inc. is a publicly traded independent oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com. Cautionary Note Regarding Forward-Looking Statements The information in this press release contains forward-looking statements that involve ris...