BATL - Battalion Oil Corporation Announces Operations and Financial Update | Benzinga
Houston, Texas, Jan. 29, 2024 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL, "Battalion" or the "Company") today announced certain financial and operating updates.
Key Highlights
- Acid gas injection ("AGI") well is projected to be injecting by end of the first quarter 2024
- Recent two well pad was drilled and completed under budget and the wells have IP'd above type curve at 1,964 BOEPD and 1,711 BOEPD respectively (71% oil) with production still inclining
- Approximately $61MM cash on hand to fund operations
- Additional equity commitment of $20MM uncalled at current time
- Recently announced merger with Fury anticipated to close as outlined in the Merger Agreement
Operations Update
The Company continues its drilling and completions operations in Monument Draw while preparing additional locations in Ward, Winkler, Reeves and Pecos counties. Recent drilling and completions on the Company's two well "Glacier" pad finished ahead of plan from both a capital and time perspective. The Glacier pad wells averaged $11.5 million for 10,000' laterals and are currently producing above type curve with high pressure supporting sustained increasing rates. The Company is currently drilling an additional two well pad in Monument Draw and expects production from those wells to be online before the end of Q2.
The previously announced workover operation on the Company's AGI is substantially complete. The Company is currently waiting for delivery of a specialty packer to finalize the installation and return the well to injection. It is expected to be online in the first quarter as previously discussed by management.
Matt Steele, Chief Executive Officer, commented "We continue to see great results from our drilling and completions operations and have once again shown well performance in Monument Draw stacks up against some of the best in the Delaware Basin."
Liquidity and Balance Sheet
Currently, the Company has $200.2 million of indebtedness outstanding and $0.3 million of letters of credit outstanding. In November 2023, the Company obtained a commitment letter from its existing equity shareholders to purchase additional preferred equity securities in an amount up to $55 million and still has over $20 million undrawn under this commitment. Additionally, the Company has cash on hand of approximately $61 million providing ample liquidity based on the Company's current operating budget.
Fury Resources Inc. Merger Transaction
The Company has filed a preliminary proxy statement and Schedule 13e-3 with the Securities and Exchange Commission ("SEC") for the proposed merger and is awaiting comments. The Company continues to work with Fury to close the transaction in the first quarter of 2024.
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