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HighPeak Energy, Inc. Provides Production, Financial and Acquisition Updates
FORT WORTH, Texas, Oct. 28, 2021 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced (i) certain production
About this update from Highpeak Energy, Inc.
[{"type":"text","content":"FORT WORTH, Texas, Oct. 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 aggregate elected commitments to $195 million, and (iii) the closing of multiple bolt-on acquisitions during the third quarter of 2021. Highlights The Company’s production for the second half of October will average approximately 15,000 barrels of oil equivalent per day (“Boe/d”), an increase of over 80% above the average third quarter 2021 production of 8,168 Boe/d.Accelerated the development drilling program with the addition of a third rig without increasing capital expenditure guidance for the year.Priced an underwritten public offering of 2,530,000 shares of common stock for aggregate gross proceeds of approximately $25.3 million.Increased the revolving credit facility borrowing base and elected commitments to $195 million.Closed a series of unrelated bolt-on acquisitions comprising 10,600 net acres in the aggregate. Production Update The Company’s production for the second half of October will average approximately 15,000 Boe/d compared with third quarter 2021 production average of 8,168 Boe/d. The Company’s third quarter production volumes were significantly influenced by the temporary shutting-in of producing wells during offset well completion operations. These wells were returned to production in late September and are increasing to pre-shut in production levels. The Company expects wells drilled with the second rig to begin contributing meaningful production later this year and early next year. HighPeak Chairman and Chief Executive Officer, Jack Hightower, said, “Our production growth rate continues to increase significantly based on the strong performance of our wells. Production exiting October is projected to exceed 15,000 Boe/d, which is above our year-end exit guidance. With the current strong commodity price environment and the work our team has done in securing materials and equipment, we intend to pull as much present value forward as we can for our investors. EBITDA generated at today’s prices and current production rates would be over $350 million on an annualized basis.” The Company recently added a third rig to further delineate its Signal Peak area and to accelerate developme...