American Oil and Gas Reporter - December 2020 - 16

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16 THE AMERICAN OIL & GAS REPORTER

the state's flaring rule.
The commission published a
proposed version of its flaring exception
application in early August (AOGR,
August 2020, pg. 19). Based on 26 sets
of comments it received, the RRC says
the revised Form R-32 makes changes to
how information is organized along with
improved instructions, while maintaining
key data that will be required from
operators as proposed in August.
According to the commission, Form
R-32 will:
· For certain exceptions, reduce the
duration for which an operator may
obtain an administrative exception to
flare gas by 50%-80%;
· Provide incentives for operators to
use technologies that reduce the amount
of gas flared;
· Provide additional key data points
to facilitate compliance audits with
reported production; and
· Require operators to submit more
specific information to justify the need
to flare or vent gas.
Published reports say an operator will
be required to justify not shutting in a
well to avoid flaring or venting gas and/or
explain why the gas cannot be sold or
used for other beneficial purposes.
Eventually, the RRC says, Form 32
will be part of a Rule 32 computer
program for submitting flaring requests
online, which also will provide the
agency with a better mechanism for
compliance audits and data analytics.
Until the online program is available,
which the RRC says is targeted for
spring, operators may use either the
current application for exceptions to
flaring or the new Form 32. ❒

Bonanza Creek And
HighPoint Merge
DENVER-Bonanza Creek Energy
Inc. and HighPoint Resources Corp.
have announced a definitive merger
agreement to combine in a transaction
valued at $376 million.
Bonanza Creek says the boards of
directors of both companies have
approved the transaction, under which
Bonanza Creek will issue 9.8 million
shares of common stock and up to $100
million in senior unsecured notes to
HighPoint equity and debt holders. The
transaction is expected to close in first
or second quarter 2021.
On completion of the transaction,
Bonanza Creek says its shareholders
will own 68% of the combined
company and HighPoint's stakeholders
will own 32%.

" Combining Bonanza Creek and
HighPoint creates significant scale in
the rural Denver-Julesburg Basin, which
will increase cash flow immediately, "
comments Bonanza Creek President and
Chief Executive Officer Eric Greager.
Adds HighPoint President and CEO
Scot Woodall, " The transaction provides
HighPoint stakeholders with the
opportunity to participate in a larger DJ
Basin producer with both an attractive
balance sheet and free cash flow profile. "
After adding HighPoint's assets,
Bonanza Creek says it anticipates pro
forma fourth quarter production of
50,000 barrels of oil equivalent a day
and a rural Weld County, Co., leasehold
of 206,000 net acres, all of which the
company says is in unincorporated areas
not subject to municipal regulation and
only 8% of which is subject to federal
mineral or surface regulations.
The company adds that it expects the
merger to generate synergies of $150
million in present value, including $15
million of near-term capital expenditure
savings. In 2021, Bonanza Creek says it
expects $31 million in savings from
general and administrative, and lease
operating expenses, and capital
expenditures. ❒

Southwestern Energy
Completes Acquisition
SPRING, TX.-Southwestern Energy
Company says it has completed its
acquisition of Montage Resources
following following shareholder approval.
" This strategic transaction represents
another deliberate step in our disciplined
repositioning strategy. We strengthened
our position as a premier producer in the
Appalachian Basin with an at-market,
accretive acquisition that provides a step
change in free cash flow, " says
Southwestern Energy President and
Chief Executive Officer Bill Way. " We
are delivering on our commitment of at
least $30 million in synergies, and we
look forward to unlocking additional
value as the newly combined team
brings innovation and demonstrated
operational efficiencies to these high
quality, complementary assets. "
By including 49 days of production
from Montage properties following the
Nov. 13 closing date, Southwestern
Energy released updated production
guidance anticipating its fourth quarter
production increasing from a range of
225 billion cubic feet equivalent-234
Bcfe to 251 Bcfe-258 Bcfe, and total
2020 production increasing from 843
Bcfe-861 Bcfe to 874 Bcfe-881 Bcfe. ❒
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American Oil and Gas Reporter - December 2020

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