Battalion Oil Corporation Announces Termination of Merger Agreement with Fury Resources, Inc. and Provides Operations Update

Core Viewpoint - Battalion Oil Corporation has terminated its merger agreement with Fury Resources due to Fury's inability to meet the obligations required to close the transaction [1][2]. Company Operations - Battalion has initiated a new drilling campaign in the fourth quarter, with the first two-well pad in Monument Draw performing ahead of schedule in terms of cycle time and budget [3]. - The two previously announced Vermejo wells have come online, producing an initial 30-day output of 1,211 barrels of oil equivalent per day (Boe/d), with 84% of this being oil, while capital costs remain below $950 per foot [3]. - The acid gas injection (AGI) facility has treated over 5.1 billion cubic feet (bcf) of sour gas, with daily volumes exceeding 30 million cubic feet per day (MMcf/d) [5]. The company is working towards full inlet capacity and is evaluating next steps for a second AGI well that is already permitted, drilled, and completed [5]. Corporate Actions - In light of the termination of the merger agreement, Battalion has canceled the special meeting of stockholders that was scheduled for December 27, 2024 [4].