Battalion Oil Corporation Announces Termination of Merger Agreement with Fury Resources, Inc. and Provides Operations Update
Battalion Oil (NYSE American: BATL) has terminated its merger agreement with Fury Resources, Inc. due to Fury's inability to meet obligations and close the transaction. Despite multiple amendments and support from preferred equity holders who agreed to contribute 100% of their preferred equity, Fury failed to provide evidence of additional equity financing. The scheduled special stockholders meeting for December 27, 2024, has been cancelled.
In operational updates, Battalion reports its latest drilling campaign is ahead of schedule and budget in Monument Draw. Two new Vermejo wells are performing above expectations, producing 1,211 barrels of oil equivalent per day (84% oil) with capital costs below $950/ft. The acid gas injection facility has processed over 5.1 billion cubic feet of sour gas, with daily volumes exceeding 30 million cubic feet per day.
Battalion Oil (NYSE American: BATL) ha annullato l'accordo di fusione con Fury Resources, Inc. a causa dell'incapacità di Fury di soddisfare gli impegni e chiudere la transazione. Nonostante molteplici emendamenti e il sostegno da parte dei possessori di azioni privilegiate che hanno accettato di contribuire con il 100% del loro capitale privilegiato, Fury non è riuscita a fornire prove di ulteriore finanziamento azionario. La riunione speciale degli azionisti programmata per il 27 dicembre 2024 è stata cancellata.
Negli aggiornamenti operativi, Battalion riporta che la sua ultima campagna di trivellazione è avanti rispetto al programma e al budget a Monument Draw. Due nuovi pozzi Vermejo stanno producendo risultati superiori alle aspettative, con una produzione di 1.211 barili di equivalente petrolio al giorno (84% di petrolio) e costi di capitale inferiori a $950/ft. L'impianto di iniezione di gas acido ha trattato oltre 5,1 miliardi di piedi cubi di gas acido, con volumi giornalieri che superano 30 milioni di piedi cubi al giorno.
Battalion Oil (NYSE American: BATL) ha rescindido su acuerdo de fusión con Fury Resources, Inc. debido a la incapacidad de Fury para cumplir con sus obligaciones y cerrar la transacción. A pesar de múltiples enmiendas y el apoyo de los tenedores de acciones preferentes que acordaron contribuir con el 100% de su capital preferente, Fury no pudo proporcionar evidencia de financiamiento de capital adicional. La reunión especial programada para los accionistas para el 27 de diciembre de 2024 ha sido cancelada.
En las actualizaciones operativas, Battalion informa que su última campaña de perforación está por delante del horario y el presupuesto en Monument Draw. Dos nuevos pozos Vermejo están funcionando por encima de las expectativas, produciendo 1,211 barriles de equivalente de petróleo por día (84% petróleo) con costos de capital por debajo de $950/pie. La instalación de inyección de gas ácido ha procesado más de 5.1 mil millones de pies cúbicos de gas ácido, con volúmenes diarios que superan 30 millones de pies cúbicos por día.
батта리он 오일 (NYSE American: BATL)이 Fury Resources, Inc.와의 합병 계약을 종료했습니다. Fury가 의무를 이행하지 못하고 거래를 완료할 수 없었기 때문입니다. 여러 차례의 수정안과 함께 100%의 우선주를 기여하기로 동의한 우선주 주주들의 지원에도 불구하고, Fury는 추가 자본 조달의 증거를 제공하지 못했습니다. 2024년 12월 27일로 예정되었던 특별 주주 총회는 취소되었습니다.
운영 업데이트에 따르면, Battalion은 Monument Draw에서 최신 시추 캠페인이 일정과 예산을 초과하여 진행되고 있다고 보고했습니다. 두 개의 새로운 Vermejo 유정은 기대치를 초과하여 하루에 1,211배럴의 석유 등가물을 생산하고 있으며 (84% 석유), 자본 비용은 $950/ft 이하입니다. 산성 가스 주입 시설은 51억 입방 피트 이상의 신 가스를 처리했으며, 일일량은 3000만 입방 피트를 초과하고 있습니다.
Battalion Oil (NYSE American: BATL) a résilié son accord de fusion avec Fury Resources, Inc. en raison de l'incapacité de Fury à respecter ses obligations et à conclure la transaction. Malgré de multiples amendements et le soutien des porteurs d'actions privilégiées qui ont accepté de contribuer à 100 % de leurs actions privilégiées, Fury n'a pas réussi à fournir des preuves d'un financement par actions supplémentaire. La réunion spéciale des actionnaires prévue pour le 27 décembre 2024 a été annulée.
Dans les mises à jour opérationnelles, Battalion rapporte que sa dernière campagne de forage est en avance sur le calendrier et le budget à Monument Draw. Deux nouveaux puits Vermejo fonctionnent au-delà des attentes, produisant 1 211 barils d'équivalent pétrole par jour (84 % de pétrole) avec des coûts d'investissement inférieurs à 950 $/pied. L'installation d'injection de gaz acide a traité plus de 5,1 milliards de pieds cubes de gaz acide, avec des volumes journaliers dépassant 30 millions de pieds cubes par jour.
Battalion Oil (NYSE American: BATL) hat seine Fusion mit Fury Resources, Inc. aufgrund der Unfähigkeit von Fury, Verpflichtungen zu erfüllen und die Transaktion abzuschließen, beendet. Trotz mehrerer Änderungen und Unterstützung von Vorzugsaktionären, die zugestimmt hatten, 100% ihres Vorzugsaktienkapitals beizutragen, konnte Fury keinen Nachweis über zusätzliche Eigenkapitalfinanzierung erbringen. Die für den 27. Dezember 2024 geplante außerordentliche Aktionärsversammlung wurde abgesagt.
In den betrieblichen Aktualisierungen berichtet Battalion, dass die jüngste Bohrkampagne im Monument Draw im Zeit- und Budgetrahmen liegt. Zwei neue Vermejo-Brunnen zeigen Ergebnisse über den Erwartungen und produzieren 1.211 Barrel Öläquivalent pro Tag (84% Öl) zu Kapitalkosten von unter $950/Fuß. Die Anlage zur Injektion von saurem Gas hat über 5,1 Milliarden Kubikfuß von sauerem Gas verarbeitet, mit täglichen Mengen von über 30 Millionen Kubikfuß pro Tag.
- Two new Vermejo wells exceeding type curve expectations with 1,211 Boe/d production
- Capital costs remain below $950/ft for new wells
- AGI facility successfully processing over 5.1 bcf of sour gas
- Daily gas processing volumes exceeding 30 MMcf/d
- Current drilling campaign ahead of schedule and budget
- Termination of merger agreement with Fury Resources
- Failed acquisition due to Fury's inability to secure additional equity financing
Insights
The termination of Battalion Oil's merger agreement with Fury Resources marks a pivotal moment, particularly given Battalion's
The Monument Draw drilling campaign's efficiency and the Vermejo wells' performance exceeding type curve expectations with 1,211 Boe/d (84% oil) demonstrate strong operational execution. The sub-
While the merger's collapse might temporarily impact market sentiment, Battalion's operational improvements and infrastructure investments position it for potential standalone value creation or future strategic alternatives.
The failed merger raises several red flags about Fury Resources' financial capabilities and the broader M&A landscape in the energy sector. Despite having secured agreements from major preferred equity holders Luminus Management, Gen IV Investment Opportunities and Oaktree Capital Management to contribute their stakes, Fury's inability to secure additional equity financing suggests either underlying asset valuation concerns or broader market skepticism about consolidation plays in smaller-cap energy companies.
The termination's timing, just days before the scheduled stockholder meeting, indicates a last-minute breakdown in financing arrangements. This scenario often creates near-term trading volatility but can also attract new potential strategic buyers who may have been waiting on the sidelines. Battalion's improving operational metrics could make it an attractive target for better-capitalized buyers seeking proven assets with existing infrastructure.
Houston, Texas, Dec. 20, 2024 (GLOBE NEWSWIRE) -- Battalion Oil Corporation (NYSE American: BATL) (“Battalion” or the “Company”) announced today that it has terminated the previously disclosed Agreement and Plan of Merger (as amended, the “Merger Agreement”) with Fury Resources, Inc. (“Buyer” or “Fury”).
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, LLC, Gen IV Investment Opportunities, LLC, and funds and accounts managed by Oaktree Capital Management, L.P., or their respective affiliates, had agreed to contribute to Buyer
In connection with the termination of the Merger Agreement, the Company has cancelled the special meeting of stockholders, scheduled for December 27, 2024.
Operations Update
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 (Boe/d) (
To date, the acid gas injection (“AGI”) facility has treated over 5.1 billion cubic feet (bcf) of sour gas and daily volumes have exceeded 30 million cubic feet per day (MMcf/d). 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.
About Battalion
Battalion Oil Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
FAQ
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