Battalion Oil Closes Acquisition of Sundown Assets, Expands Monument Draw Position

Core Viewpoint - Battalion Oil Corporation has successfully completed an all-stock acquisition of 7,090 net acres in Ward County, Texas, from RoadRunner Resource Holding LLC, enhancing its operational footprint in the region [1][2]. Transaction Highlights & Strategic Rationale - The acquisition expands Battalion's existing Monument Draw position from 20,007 acres to a total of 27,097 acres, allowing for optimized long-lateral development and operational efficiencies [2][5]. - The deal is expected to add 30 high-quality net drilling locations targeting the Wolfcamp A, Wolfcamp B, and 3rd Bone Spring formations, significantly improving the company's drilling inventory [5]. - The acquisition includes an existing Battalion-operated well, contributing an approximate value of $700,000 based on a 10% discounted net present value [5]. - Development will benefit from a recent acid gas treating agreement with Targa Resources, ensuring sufficient sour gas treatment capacity for future operations [5]. Management Commentary - The CEO of Battalion expressed confidence in the subsurface characteristics and future potential of the acquired acreage, citing previous operational experience in the area [5][6].