HPK Energy, LP entered into a business combination agreement to acquire Pure Acquisition Corp. (NasdaqCM:PACQ) in a reverse merger transaction on November 27, 2019. Under the terms of the transaction, Pure Acquisition Corp. will acquire in exchange for 71.15 million of its shares, all of the outstanding interests in HPK Energy, LP. In a related deal, HPK Energy, LP will acquire substantially all of the assets of Grenadier. After giving effect to the business combination, Pure Acquisition Corp. will conduct its business as an independent oil and natural gas company engaged in the acquisition, development and production of oil, natural gas and NGL reserves with assets located in the northeastern part of the oil-rich Midland Basin. Upon completion of the business combination, Pure Acquisition Corp. intends to list its common stock and warrants for trading on the New York Stock Exchange (the “NSYE”) or the Nasdaq Capital Market (the “Nasdaq”) under the symbols “HPK” and “HPKWS.” The closing of the business combination is subject to the requisite approval of stockholders of Pure Acquisition Corp., the expiration of the waiting period (or extension thereof) under the Hart-Scott Rodino Antitrust Improvement Act of 1976, the completion of the offer by Pure Acquisition Corp. to redeem shares of class A common stock issued in its initial public offering for cash, there being at least $275 million of available liquidity, the consummation of the transactions under the Grenadier contribution agreement occurring promptly following the closing of transaction with HPK Energy and the shares of Pure Acquisition Corp. issuable in the transaction having been approved for listing on the NYSE or the Nasdaq.

The transaction was unanimously approved and recommended to the Board of Directors of Pure Acquisition Corp. by a special committee consisting of independent directors of the Board of Pure Acquisition Corp. As of February 7, 2020, Pure Acquisition Corp. will hold a special meeting of shareholders on February 20, 2020 to approve the transaction. The business combination is expected to close in the first quarter of 2020. As of February 6, 2020, the transaction was extended and is now expected to be completed by May 21, 2020. Jefferies LLC acted as financial advisor, G. Michael O'Leary, Thomas W. Ford, Jr., Taylor Landry, Allison D. Mantor, Hal V. Haltom, Jr. of Hunton Andrews Kurth LLP acted as legal advisors to the special committee of the board of directors of Pure Acquisition Corp., Sarah K. Morgan, Jeffery B. Floyd, John Grand, Scott Rubinsky, Shane Tucker, John Lynch and Hill Wellford of Vinson & Elkins L.L.P. acted as legal advisors to HPK Energy. Latham & Watkins LLP acted as legal advisor to Jefferies LLC. Morrow & Co., LLC acted as information agent to Pure Acquisition Corp. Pure Acquisition Corp agreed to pay Morrow & Co., LLC a fee of $32,500 million for its services.