Danantara Pours $250 Million into US Oil Producer HighPeak Energy

Danantara, Indonesia's sovereign wealth fund, has announced a $250 million investment in HighPeak Energy, a Texas-based oil producer operating in the Permian Basin. The deal, facilitated by Danantara Investment Management (DIM), will involve convertible preferred stock, with proceeds aimed at strengthening HighPeak's capital structure and financial flexibility. DIM CEO Pandu Sjahrir highlighted the potential for expertise sharing to benefit Indonesia's energy sector and enhance bilateral energy relations.

HighPeak Energy CEO Michael Hollis expressed enthusiasm about the partnership, noting that it aligns with the company's commitment to sustainable growth and value creation. The investment is subject to meeting applicable conditions and compliance with relevant policies, though no specific deadline was disclosed. HighPeak's current production averages around 45,500 barrels of oil equivalent per day, and the deal could expand its drilling program.

Danantara's investment also includes downside protection and the potential for future equity upside through stock conversion and subscription options. The fund will gain the right to appoint a director to HighPeak's board. Additionally, HighPeak plans to develop training and secondment programs for Indonesians as part of the collaboration.

This investment is not Danantara's only foray into HighPeak. Energi Mega Persada, another Indonesian oil producer under the Bakrie Group, has also committed $200 million to HighPeak through a separate deal involving newly issued convertible preferred stock.