Battalion Oil Corporation Ends Merger with Fury Resources
Deal News | Dec 20, 2024 | Globenewswire
In a recent announcement, Battalion Oil Corporation has terminated its merger agreement with Fury Resources, Inc., originally disclosed in a previously stated Agreement and Plan of Merger. Despite several amendments to the merger agreement and commitments from preferred equity holders including Luminus Management, Gen IV Investment Opportunities, and Oaktree Capital Management, Fury Resources failed to secure necessary equity financing to close the deal. Consequently, Battalion Oil Corporation also canceled the scheduled special stockholders' meeting for December 27, 2024. In an operational update, Battalion has made notable progress with its latest drilling campaign in Monument Draw and the Vermejo wells, achieving production above projections and managing costs efficiently. Furthermore, the company's acid gas injection facility has treated significant volumes of sour gas, indicating progress towards full capacity. Battalion Oil remains dedicated to onshore oil and natural gas exploration and development in the U.S.
Sectors
- Energy and Natural Resources
- Mergers and Acquisitions
Geography
- United States – Battalion Oil Corporation operates within the United States, and the article discusses its activities and operations in the U.S.
- Texas – Houston, Texas is specifically mentioned as the headquarters of Battalion Oil Corporation, highlighting its operations and news announcements.
Industry
- Energy and Natural Resources – The article discusses Battalion Oil Corporation, which engages in the acquisition, production, exploration, and development of onshore oil and natural gas properties.
- Mergers and Acquisitions – The main focus of the article involves the termination of a merger agreement between Battalion Oil Corporation and Fury Resources, Inc.
Financials
- 1,211 Boe/d – Initial 30-day production from the Vermejo wells above company expectations.
- $950/ft – Capital costs for the Vermejo wells.
- 5.1 bcf – Total volume of sour gas treated at the acid gas injection facility.
- 30 MMcf/d – Daily volume of sour gas treated in the acid gas injection facility.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Battalion Oil Corporation | The Target Company | Company | An independent energy company focused on onshore oil and natural gas in the U.S. |
| Fury Resources, Inc. | The Bidding Companybuyer | Company | A company involved in a failed merger agreement with Battalion Oil Corporation. |
| Luminus Management, LLC | Equity Holder | Company | A company that holds preferred equity in Battalion Oil Corporation and was part of the merger agreement. |
| Gen IV Investment Opportunities, LLC | Equity Holder | Company | A company holding preferred equity in Battalion Oil Corporation, supporting the merger agreement. |
| Oaktree Capital Management, L.P. | Equity Holder | Company | A company managing funds and accounts that hold preferred equity in Battalion Oil Corporation. |