HighPeak Energy update Summary
HighPeak Energy, Inc. first quarter 2021 update produced 5290 BOE, Drilled and completed six operated wells and costs of approximately $505 per lateral foot.
- First quarter 2021 sales volumes of 5,290 barrels of oil equivalent per day (“Boe/d”), including 4,735
barrels of oil per day, or approximately 90% oil, equates to increased production of 270% compared
with the first quarter 2020 and 59% compared with average 2021 fourth quarter sales volumes of
3,332 Boe/d.
- Net income of $4.7 million, or $0.05 per share, compared with a net loss of $4.9 million in the
previous quarter. EBITDAX (a non-GAAP measure as defined and reconciled below) of $20.1 million
compared with $7.0 million in the previous quarter.
- First quarter 2021 realized price of $54.01 per Boe compared with an average NYMEX WTI price of
$57.84 per barrel and a cash operating margin of $45.83 per Boe, an increase of $16.62 per Boe, or
57%, compared with the fourth quarter 2020. Realized price of $54.01 per Boe was approximately
93% of the average NYMEX WTI price for the quarter.
- Ended first quarter 2021 with an undrawn revolving credit facility and a $9.6 million cash balance
- Drilled and completed six operated wells with an average lateral length of ~14,000 feet. At March 31,
2021, two wells were in the process of being drilled and eight wells were in various stages of
completion. The Company also participated in one non-operated horizontal well.
- Drilled two wells on our Signal Peak acreage position including one well in the Wolfcamp C zone and
one well in the Wolfcamp D zone. Both wells are currently flowing back and continuing to clean up.
- Continue to realize operated all-in drill, complete, equip, and facility well costs of approximately $505
per lateral foot.
HighPeak Energy Message to Shareholders
HighPeak Chairman and Chief Executive Officer, Jack Hightower, said, “HighPeak is a growth story. We continue to build production with our one-rig drilling program primarily focused in the Flat Top area. First quarter 2021 production was up 59% compared with the fourth quarter 2020 demonstrating the productivity of our wells despite the effects of winter storm Uri, which decreased our average first quarter production by approximately 880 Boe/d.
We grew EBITDA 187% quarter over quarter and exited the quarter with cash on the balance sheet and zero debt. Our production is continuing to increase and during the first half of May we averaged approximately 8,300 Boe/d which is an increase of about 57% compared with our first quarter sales volumes.” Source HighPeak Energy First Quarter 2021 Update
HighPeak Energy Well & Facility Permits Download
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HighPeak Energy Well Permits & Wells Spud
The oil and gas industry is highly regulated by Government agencies. One of the responsibilities is to approve well permits. A well permit is the intent of an oil & gas operator to drill a new well. Well permits include oil wells, gas wells, water wells and more..
Spudding is the process of beginning to drill a well in the oil and gas industry. … After the surface hole is completed, the main drill bit—which performs the task of drilling to the total depth—is inserted and this process can also be referred to as “spudding in.” Source HighPeak Energy First Quarter 2021 Update
HighPeak Energy Drilling Locations Q1 2021
Spraberry Trend covers a large area – around 2,500 square miles. As most often defined, the Spraberry includes portions of Irion, Reagan, Upton, Glasscock, Midland, and Martin Counties. In 2007, the U.S. Department of Energy ranked The Spraberry Trend third in the United States by total proved reserves, and seventh in total production. Estimates have the Spraberry Shale holding up to 10 billion barrels of oil as well as 3 trillion cubic feet of natural gas. Global Hunter estimates the play’s potential recovery resources range from 4.2 to 8.8 billion BOE
Source EOG Resources First Quarter 2021 Update
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About HighPeak Energy
HighPeak Energy is an independent oil and natural gas company focused on the development of unconventional oil and natural gas reserves in primarily Howard County of the Midland Basin. HighPeak was formed in 2020 through the business combination of HighPeak Energy and Pure Acquisition Corporation, a special purpose acquisition company formed by Jack Hightower, our Chairman and CEO. HighPeak is headquartered in Fort Worth, Texas.