BATL News & Events

The WAT AGI Facility ceased operations on or about August 11, 2025 and remains out of service. Due to the cessation of operations, Battalion has exercised its contractual rights to terminate the GTA with WAT. Subsequent to this termination, the company has entered into an agreement with a publicly traded large-cap midstream provider to process Battalion's gas at an alternate processing facility. Battalion has been utilizing this midstream partner since the AGI Facility went offline. Due to a significant facility expansion completed in the fourth quarter of 2025, this provider is now able to process substantially all of the company's gas volumes from its Monument Draw Field. In conjunction with this facility expansion, Battalion has continued to ramp production into this alternate processing facility throughout late December and January. Most recently, the facility has been processing more than 30 MMcf/d of Battalion's gas production, compared to a December average of approximately 17.4 MMcf/d. This increase in processing capability has allowed the company to benefit from additional flow assurance and operational reliability, resulting in an increase in Battalion's average oil production of approximately 1,200 net barrels of oil per day month-to-date in January as compared to the company's December average.

Battalion Oil announced that it received notice from the NYSE confirming acceptance of the company's plan to regain compliance with its continued listing standards, including granting a plan period through November 30 for the company to execute its compliance strategy.

The Company kicked off its latest drilling campaign in the fourth quarter and the first two-well pad in Monument Draw is currently ahead of plan from both cycle-time and budget perspectives. Also in the fourth quarter, the two previously announced Vermejo wells came online and are producing above the Company's type curve expectations with initial 30-day production of 1,211 barrels of oil equivalent per day while capital costs remain below $950/ft. To date, the acid gas injection facility has treated over 5.1 billion cubic feet of sour gas and daily volumes have exceeded 30 million cubic feet per day. Battalion and its JV partner continue to ramp toward full inlet capacity in the current AGI facility and the Company is evaluating potential next steps for its second AGI well that is already permitted, drilled and completed in the target injection zone.

Battalion Oil has terminated the previously disclosed Agreement and Plan of Merger with Fury Resources. As of this morning, Fury was not able meet the obligations and close the transaction contemplated by the Merger Agreement. Over the past year, in order to facilitate the transaction, the Company and Fury entered into numerous amendments to the terms of the Merger Agreement. In support of the transaction, the holders of all of the outstanding shares of the preferred equity of the Company, Luminus Management, Gen IV Investment Opportunities, and funds and accounts managed by Oaktree Capital Management, or their respective affiliates, had agreed to contribute to Buyer 100% of their preferred equity of the Company in exchange for new preferred shares of Buyer. Despite these commitments and amendments, Fury was unable to provide evidence of additional equity financing or to timely close the transaction as required by the Merger Agreement. In connection with the termination of the Merger Agreement, the Company has cancelled the special meeting of stockholders, scheduled for December 27, 2024.