Danantara Indonesia, through its investment holding company PT Danantara Investment Management (DIM), has announced a strategic US$250 million investment in HighPeak Energy, Inc. (HighPeak), a Texas-based oil and gas company operating in the Permian Basin, United States (06/10).

The investment will be made through the issuance of convertible preferred stocks in several stages. It gives DIM strategic access to HighPeak’s oil-dominated portfolio in the Permian Basin, the largest oil-producing region in the United States.

The investment expands Indonesia’s global energy portfolio and is aligned with DIM’s mandate to invest in strategic sectors for Indonesia. HighPeak will use the investment to strengthen its capital structure and financial flexibility to support the sustainable development and growth of its asset portfolio.

Danantara Invests in HighPeak’s Permian Basin Portfolio

HighPeak is engaged in the acquisition, development, exploration, and exploitation of oil and natural gas in the Permian Basin.

Under the investment terms, DIM will receive protection against a decline in the investment’s value. It will also have the opportunity to benefit from future increases in equity value through conversion into common shares.

DIM will have an option to participate in HighPeak’s future share offerings through private placements. The investment also allows DIM to appoint one representative to HighPeak’s board of directors.

Permian Basin Accounts for 48% of US Oil Production

The Permian Basin is the largest crude oil-producing region in the United States. According to the U.S. Energy Information Administration, the region accounted for 48% of total US production in 2025.

Since 2007, production growth in the region has been driven mainly by horizontal drilling and hydraulic fracturing, or fracking.

If reservoir conditions are suitable, these techniques can also be applied to mature onshore oil and gas fields to increase well productivity and oil and gas recovery. This can provide a relevant model for Indonesia as it seeks to increase domestic oil and gas production.

HighPeak to Develop Training for Indonesian Workers

After the transaction is completed, HighPeak will develop training and secondment programs for Indonesian workers.

The programs will support capability development and the exchange of technical expertise.

Pandu Sjahrir, Chief Executive Officer of Danantara Investment Management, said the investment is aligned with the company’s mandate to invest in strategic sectors that provide sustainable long-term returns while supporting Indonesia’s national interests.

“This investment is in line with our mandate to invest in strategic sectors that provide sustainable long-term returns while supporting Indonesia’s national interests. HighPeak’s strategic position in one of the world’s most advanced upstream oil and gas markets makes it a potential investment opportunity as we seek to build a globally diversified investment platform. We hope this cooperation can facilitate skills exchange that supports the development of Indonesia’s energy sector, while also strengthening the long-standing energy and economic relationship between Indonesia and the United States.”

HighPeak Plans to Expand Its Drilling Program

Michael Hollis, President and Chief Executive Officer of HighPeak, said the company operates a large-scale, oil-dominated asset portfolio in the Permian Basin.

“HighPeak operates a large-scale, oil-dominated asset portfolio in the Permian Basin. We believe cooperation with DIM will accelerate the development of these assets through continued investment, including the expansion of our drilling program. This partnership brings together long-term investors who share the same commitment to sustainable growth and value creation.”

DIM said it is fully committed to carrying out its mandate through disciplined investment and meaningful contributions to Indonesia’s long-term economic growth.

The completion of the transaction remains subject to the fulfillment of applicable requirements and compliance with relevant policies.

PHOTO: TOPBUSINESS

This article was created with AI assistance.

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