Antara News·Indonesia·Tuesday, October 6, 2026 at 04:36 PM UTC

Indonesia's Danantara invests US$250 million in US oil firm HighPeak

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Muhammad Heriyanto, Uyu Liman

Jakarta (ANTARA) - Indonesia’s sovereign wealth fund, Danantara Indonesia, announced a US$250 million investment in Texas-based oil and natural gas company HighPeak Energy, Inc. (NASDAQ: HPK), through its investment holding arm, PT Danantara Investment Management (DIM).

HighPeak Energy specializes in the acquisition, development, and exploration of oil and natural gas in the Permian Basin — the largest crude oil-producing region in the United States. The transaction is being executed through the issuance of convertible preferred stock across multiple tranches.

"This investment aligns with our mandate to invest in strategic sectors that yield sustainable long-term returns while supporting Indonesia's national interests," Chief Executive Officer (CEO) of DIM Pandu Sjahrir said in a statement released here on Tuesday.

Sjahrir noted that HighPeak Energy's strategic position in one of the world's most advanced upstream oil and gas markets makes it a promising opportunity as Danantara strives to build a globally diversified investment portfolio.

"We hope this collaboration will facilitate knowledge transfer to support the development of Indonesia's energy sector, while strengthening the long-standing energy and economic ties between Indonesia and the US," Sjahrir added.

President and CEO of HighPeak Energy Michael Hollis expressed confidence that the partnership with DIM will accelerate asset development through sustained capital injections, including the expansion of drilling programs.

HighPeak Energy will utilize the investment to strengthen its capital structure and financial flexibility, supporting the sustainable development and growth of its high-quality asset portfolio.

"This partnership brings together long-term investors who share a common commitment to sustainable growth and value creation," Hollis said.

The Permian Basin accounted for 48 percent of total US crude oil production in 2025, according to the U.S. Energy Information Administration. Since 2007, production growth in the region has been primarily driven by horizontal drilling and hydraulic fracturing (fracking).

Provided that reservoir conditions are supportive, these advanced extraction techniques can also be applied to mature onshore oil and gas fields to enhance well productivity — serving as a potential model for Indonesia's efforts to boost its domestic production.

DIM remains fully committed to executing its mandate through disciplined investments and meaningful contributions to Indonesia's long-term economic growth.

Under the terms of the investment, DIM will receive downside protection alongside the opportunity to benefit from future equity value increases by converting its shares into common stock.

It also holds the option to participate in subsequent HighPeak Energy equity offerings through private placements. Additionally, DIM will appoint one representative to HighPeak Energy's board of directors.

Upon the completion of the transaction, HighPeak Energy will develop training and secondment programs for Indonesian workers to support capability building and technical expertise exchange.

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