DJ Basin operator HighPoint Resources has filed for Chapter 11 bankruptcy as part of a prepackaged plan ofreorganization and merger with Bonanza Creek Energy. The voluntary filing was made on 14 March in the US Bankruptcy court for the District of Delaware.
Under the transaction, Bonanza Creek will issue 9.8 million shares of common stock and up to $100 million in senior unsecured notes to HighPoint debt holders in an exchange offer and the remaining debt to be assumed for transaction valued at around $376 million.
Highpoint holds interest in about 142,000 net acres located in three main areas across the DJ Basin, where more than three-quarters of its drilling rigs are idled, according to the Baker Hughes rig count. The company’s estimated proved reserves for the year ended 2019 were just over 127 million BOE. Net production across that same time was around 12,500 BOE/D.
The entities included in the filing are: HighPoint Resources Corp., HighPoint Operating Corp., and Fifth Pocket Production LLC.