Battalion Oil Corporation has terminated its merger agreement with Fury Resources, Inc., citing Fury’s inability to meet financial obligations necessary to close the deal.
The merger, initially announced in December 2023, faced multiple delays and amendments over the past year. Despite support from Battalion’s preferred equity holders, including Luminus Management, LLC, Gen IV Investment Opportunities, LLC, and Oaktree Capital Management, L.P., who had agreed to exchange their holdings for new preferred shares in Fury, the transaction could not be finalized.
In light of the termination, Battalion has canceled the special stockholders meeting that was scheduled for December 27, 2024.
Operationally, Battalion reports progress in its latest drilling campaign in the Monument Draw area, with the first two-well pad ahead of schedule and under budget. Additionally, two Vermejo wells have commenced production, exceeding type curve expectations with initial 30-day production averaging 1,211 barrels of oil equivalent per day at 84% oil, while maintaining capital costs below $950 per foot.
The company’s acid gas injection facility has treated over 5.1 billion cubic feet of sour gas, with daily volumes surpassing 30 million cubic feet per day. Battalion and its joint venture partner are working towards full capacity utilization of the current facility and are evaluating the next steps for a second permitted and drilled injection well.
