Shearman & Sterling advised Hannathon Petroleum in its Purchase and Sale Agreement with HighPeak to sell Hannathon’s (together with joint working interest owners) oil and gas assets located in Howard County, Texas, comprising approximately 18,600 net acres in the Midland Basin. HighPeak will pay Hannathon and the other sellers an unadjusted purchase price of $255 million in cash and will issue approximately 3.78 million shares of HighPeak Energy, Inc.’s common stock, for combined consideration estimated to be worth about $373.4 million. Closing is expected in the third quarter of 2022, subject to customary approvals and closing conditions.

Hannathon is a private oil and gas company headquartered in Midland, Texas focused on identifying, acquiring and operating assets primarily located in the Permian Basin.

HighPeak Energy, Inc. (NASDAQ:HPK) is a publicly-traded oil and gas company engaged in the acquisition, development and production of oil, natural gas and NGL reserves.

The Shearman & Sterling team below included associate Sydney Kane (New York-Tax).

The Team