Battalion Oil Corp. has terminated a previously disclosed plan to merge with privately held Fury Resources Inc.
The Delaware basin operator, in a release Dec. 20, said Fury Resources has been unable to meet the obligations and close the deal contemplated by the agreement, despite both parties entering into numerous amendments to the terms.
The deal, valued at $450 in the December 2023 announcement, had initially been set to close in this year’s first quarter (OGJ Online, Dec. 15, 2023).
Battalion Delaware basin operations update
In the same release, Battalion offered an operations update, noting progress on its fourth-quarter drilling campaign. The first 2-well pad in Monument Draw is ahead of plan from both cycle-time and budget perspectives, the company said.
Also in the quarter, Battalion brought online two Vermejo wells which are “producing above the company’s type curve expectations with initial 30-day production of 1,211 boe/d (84% oil) while capital costs remain below $950/ft.”
As of Dec. 20, the acid gas injection (AGI) plant has treated over 5.1 bcf of sour gas and daily volumes have exceeded 30 MMcfd, the company said. The company will continue to ramp toward full inlet capacity in the current AGI plant and is evaluating potential next steps for its second AGI well that is permitted, drilled, and completed in the target injection zone.