HighPeak Energy Inc., Fort Worth, Tex., will decrease its drilling operations to four rigs from six in this year’s first half and has initiated a process to evaluate strategic alternatives, including a potential sale of the company.
The Permian basin pure-play company holds about 110,000 net acres (56% held by production, 98% operated, 12,000 ft average lateral length), consisting of two contiguous blocks in the northern Midland basin, primarily in Howard County, Texas, with an oil-weighted inventory (83% oil, 93% liquids in third-quarter 2022). Primary delineated inventory of about 1,300 locations could provide over 14 years of activity at a 4-rig pace, the company said. Average production of 47,000-53,000 with 130-145 gross operated wells turned-in-line is expected this year.
HighPeak was formed in 2020 through the business combination of HighPeak Energy and Pure Acquisition Corp. (OGJ Online, Aug. 24, 2020).