Battalion Oil Acquires 7,090 Texas Acres for 485,000-Share Stock Transaction
Battalion Oil will issue 485,000 shares to acquire 7,090 net acres in Ward County, Texas adjoining its Monument Draw position. The deal adds 30 high-quality net drilling locations targeting Wolfcamp A, Wolfcamp B and 3rd Bone Spring and includes an existing well valued at about $700,000 NPV10.
1. Purchase and Sale Agreement
Battalion Oil entered a PSA to acquire 7,090 net acres in Ward County, Texas from Sundown Resource in an all-stock transaction. Under the agreement, Battalion will issue 485,000 common shares with an effective date of March 1, 2026, subject to customary closing adjustments, registration rights and regulatory approvals.
2. Enhanced Drilling Inventory
The acquisition expands Battalion’s Monument Draw position with 30 high-quality net drilling locations targeting the prolific Wolfcamp A, Wolfcamp B and 3rd Bone Spring formations, enabling optimized long-lateral development and operational efficiencies across a contiguous footprint.
3. Immediate Production and Infrastructure
Included in the deal is Sundown’s interest in an existing Battalion-operated well within the acquired acreage, contributing approximately $700,000 on a 10% discounted net present value basis. Development will leverage Battalion’s recent sour gas treatment agreement with Targa Resources to ensure capital-efficient infrastructure support.
4. Next Steps and Approvals
The transaction remains subject to closing conditions including regulatory approvals and customary adjustments. Upon completion, Battalion will consolidate the contiguous acreage into its Monument Draw position and proceed with detailed development planning.