ExpansionApr 29, 2026, 06:47 AM
BATL secures 50% additional compression, boosting flow to 50+ MMcfd
AI Summary
Battalion Oil Corporation announced a significant increase in compression capacity, securing an additional 50% capacity in Monument Draw through a long-term contract. This expansion will boost flow capacity from 35 MMcfd to over 50 MMcfd, with facilities expected online in early Q3 2026. The deal requires no capital from Battalion and reduces typical lead times for sour gas compressors from 18-36 months to approximately two months, positioning the company for increased production and future development.
Key Highlights
- Secured 50% additional sour gas compression capacity in Monument Draw.
- Increased flow capacity from 35 MMcfd to over 50 MMcfd.
- New facilities expected to be online in early Q3 2026.
- Transaction requires no capital use from Battalion Oil.
- Reduced compressor lead time to approximately two months from 18-36 months.
- Current well economics return 80%+ IRR at recently hedged commodity prices.
- Positions the company for increased production and future development.