Note 3 - Acquisitions

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Acquisitions [Text Block]

NOTE

3.

Acquisitions

During the

three

months ended

March 31, 2021

and

2020,

the Company spent a total of

$309,000

and

$3.3

million, respectively, to acquire primarily undeveloped acreage, and in the case of the

2020

period,

three

vertical producing properties and

two

salt-water disposal wells in and around the Company's existing properties for future exploration activities in the Midland Basin.

Grenadier Acquisition.

In

June 2019,

HighPeak Energy Assets II, LLC (“HighPeak Assets II”) signed a purchase and sale agreement with Grenadier Energy Partners II, LLC (“Grenadier”) to acquire substantially all the oil and natural gas assets of Grenadier, effective

June 1, 2019,

subject to certain customary closing adjustments for a total purchase price of

$615.0

million. Since HighPeak Assets II was contributed to the Predecessor in the HPK LP business combination, this purchase and sale agreement became part of the Predecessor effective

October 1, 2019.

A nonrefundable deposit of

$61.5

million was paid to Grenadier in

2019

in addition to a

$15.0

million nonrefundable extension payment in

2020

to extend the potential closing to

May 2020.

The Grenadier Acquisition was terminated in

April 2020

and was

not

consummated and therefore a charge to expense of

$76.5

million was recognized during the

three

months ended

March 31, 2020.