Joint VentureMay 5, 2026, 05:45 PM
Battalion Oil Signs LOI for 8-Well Joint Development Agreement
AI Summary
Battalion Oil Corporation announced the execution of a Letter of Intent (LOI) with an unaffiliated industry partner for a Joint Development Agreement (JDA). This JDA outlines an up to eight-well Monument Draw program in Ward County, Texas, targeting the 3rd Bone Spring, Wolfcamp A, and Wolfcamp B formations. The agreement is designed to provide shared capital and an accretive carry to Battalion, accelerating development while the company retains operatorship and a majority working interest. Separately, Battalion is also negotiating an accretive refinance of long-term debt and an oil transport and marketing partnership.
Key Highlights
- Battalion Oil executed a Letter of Intent (LOI) for a Joint Development Agreement (JDA) with an unaffiliated industry partner.
- The JDA contemplates an up to eight-well Monument Draw program in Ward County, Texas.
- Battalion will operate the wells and retain a majority working interest in the program.
- The program targets the 3rd Bone Spring, Wolfcamp A, and Wolfcamp B formations.
- The JDA provides shared capital and an accretive carry to Battalion, accelerating development.
- This development is expected to deliver very attractive returns and prove additional drilling locations.
- The company is also negotiating an accretive refinance of long-term debt and an oil transport and marketing partnership.
- The proposed transaction is subject to definitive documentation and Board approval.