Colorado shale player HighPoint files for bankruptcy
Colorado shale oil and gas player HighPoint Resources Corp. announced this week that it had filed for Chapter 11 bankruptcy protection.
“HighPoint has filed customary motions with the court seeking a variety of ‘first-day’ relief, including authority to pay owner royalties, employee wages and benefits, and certain vendors and suppliers in the ordinary course for goods and services provided,” the company declared in a March 14 release.
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Bankruptcy proceedings were filed in a Delaware court.
HighPoint holds about 142,600 net acres in the Denver-Julesburg basin in Colorado, among the top 10 shale oil and gas producing states in the US. Its estimated proved reserves come to around 127mn boe, while net production is about 12.5mn boe.
In the third quarter of 2020, the last period for which the HighPoint has reported earnings, the company realised net oil, natural gas and natural gas liquids production of 2.8mn boe, above its guidance for the quarter. Gas production accounted for about 47% of total output and sales for the period.
The company reported a net loss of US$16mn in the three-month period.
On November 9, the company announced plans to merge with its Colorado counterpart, Bonanza Creek, with the goal of building up the position in Denver- Julesburg. In its bankruptcy filing, HighPoint said it was still moving forward with the Bonanza Creek merger.