BATL - Battalion Oil joins JV to develop acid gas treatment facility

Battalion Oil (NYSE:BATL) said Monday it entered into a joint venture agreement with Caracara Services to develop a strategic acid gas treatment and carbon sequestration facility in west Texas' Delaware Basin; financial terms are not disclosed. The Brazos Amine Treater joint venture also entered into a gas treating agreement with some Battalion Oil (BATL) subsidiaries for gas production from the company's Monument Draw area. The company said the facility would have an initial capacity of ~30M cf/day as part of Phase 1 and designed to treat natural gas for carbon dioxide and hydrogen sulfide with combined concentrations up to 10%; after treating, the facility would deliver sweet gas back to Battalion (BATL), who would redeliver to dedicated third-party midstream providers. Caracara will provide all remaining capital for the construction of the facility and associated infrastructure, while Battalion (BATL) contributes a wellbore with an approved permit for the injection of acid

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Battalion Oil joins JV to develop acid gas treatment facility