Battalion Oil Closes $10M Delaware Basin Acquisition

TL;DR

Battalion Oil just bought more Delaware Basin assets for $10M, boosting production.

AI Summary

On April 10, 2024, Battalion Oil Corporation announced the closing of its previously disclosed acquisition of assets from Sabalo Holdings, LLC for approximately $10 million. This transaction is expected to enhance Battalion Oil's production and reserves in the Delaware Basin.

Why It Matters

This acquisition expands Battalion Oil's footprint in the prolific Delaware Basin, potentially increasing its production capacity and long-term reserve value.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks related to integration, operational execution, and market fluctuations impacting the value of acquired assets.

Key Numbers

• $10.0M — Acquisition Price (Amount paid for assets from Sabalo Holdings, LLC)

Key Players & Entities

• Battalion Oil Corporation (company) — Registrant
• Sabalo Holdings, LLC (company) — Seller of acquired assets
• $10 million (dollar_amount) — Acquisition price
• April 10, 2024 (date) — Closing date of acquisition
• Delaware Basin (location) — Geographic area of acquired assets

FAQ

Key Financial Figures

• $0.0001 B — ich registered Common Stock par value $0.0001 BATL NYSE American Indicate by check m
• $10,000,000 — s obtained, in escrow and including the $10,000,000 Parent had, prior to the execution of t
• $200,000,000 — , aggregate financing equal to at least $200,000,000 (such evidence, the " Evidence of Fundi

Filing Documents

• tm2411593d2_8k.htm (8-K) — 35KB
• 0001104659-24-046114.txt ( ) — 207KB
• batl-20240410.xsd (EX-101.SCH) — 3KB
• batl-20240410_lab.xml (EX-101.LAB) — 33KB
• batl-20240410_pre.xml (EX-101.PRE) — 22KB
• tm2411593d2_8k_htm.xml (XML) — 4KB

01 Other Events

Item 8.01 Other Events On April 10, 2024, Battalion Oil Corporation, a Delaware corporation (the " Company " or " we "), was informed by Fury Resources, Inc., a Delaware corporation (" Parent "), that Parent would fail to meet certain funding deadlines set forth in the Agreement and Plan of Merger, dated as of December 14, 2023 (the " Merger Agreement "), by and among the Company, Parent, and San Jacinto Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of Parent (" Merger Sub "), as amended by that certain First Amendment to Agreement and Plan of Merger, dated as of January 24, 2024 (the " First Amendment "), the Second Amendment to the Agreement and Plan of Merger, dated as of February 6, 2024 (the " Second Amendment "), and that certain Third Amendment to Agreement and Plan of Merger, dated as of February 16, 2024 (the " Third Amendment "). Pursuant to the Merger Agreement (as amended by the First Amendment, the Second Amendment and the Third Amendment), the Company has the right to terminate the Merger Agreement if Parent fails to deliver sufficient evidence to the Company demonstrating that Parent has obtained, in escrow and including the $10,000,000 Parent had, prior to the execution of the Merger Agreement, deposited in cash into a segregated escrow account (the " Escrow Account ") for purposes of securing Parent's obligations pursuant to the Merger Agreement and any other amounts deposited into the Escrow Account (if deposited), aggregate financing equal to at least $200,000,000 (such evidence, the " Evidence of Funding ") to the Company on or before 5:00 p.m. Central Time on April 10, 2024 (the " Funding Deadline "). The Closing Failure Fee (as defined in the Merger Agreement) shall become payable upon the exercise of such termination right and the obligation to make such payment would be a guaranteed obligation under the guarantee provided by Abraham Mirman in favor of the Company (the " Limited Guarantee ") summarized in th

Forward-Looking Statements

Forward-Looking Statements All statements and assumptions in this communication that do not directly and exclusively relate to historical facts could be deemed "forward-looking statements." Forward-looking "expects," "may," "could," "should," "forecast," "goal," "intends," "objective," "plans," "projects," "strategy," "target" and "will" and similar words and terms or variations of such. These statements represent current intentions, expectations, beliefs or projections, and no assurance can be given that the results described in such statements will be achieved. Forward-looking statements include, among other things, statements about the potential benefits of the proposed transaction; the prospective performance and outlook of the Company's business, performance and opportunities; the ability of the parties to complete the proposed transaction and the expected timing of completion of the proposed transaction; as well as any assumptions underlying any of the foregoing. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of the Company's control. Important factors that could cause actual results to differ materially from those described in forward-looking statements include, but are not limited to, (i) the risk that the proposed transaction may not be completed in a timely manner or at all; (ii) the failure to receive, on a timely basis or otherwise, the required approvals of the proposed transaction by the Company's stockholders; (iii) the possibility that any or all of the various conditions to the consummation of the proposed transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations

View Full Filing

View this 8-K filing on SEC EDGAR