Battalion Oil Corporation announced its financial and operational results for 2021. The company reported average daily production of 17,283 Boepd in the fourth quarter. For the full-year 2021, it reported 16,241 Boepd.
Moreover, Battalion Oil had a result on proved reserves of 95.9 MMBoe, a 51% increase over year-end 2020 reserves. Additionally, they completed strategic refinancing in November 2021; an enhanced liquidity profile allows for a significant increase in activity.
The company reports that they Kicked off the 2022 capital program in December 2021 with 3 well-pad at Monument Draw; expect to keep one rig running through 2022. Also, they had maintained flat production in 2022 while driving double-digit growth in daily oil production by year-end 2022
Richard Little, CEO of Battalion Oil, commented, that Battalion had an excellent fourth quarter of 2021 from an operational and financial perspective; much of that is due to the operational success they had throughout 2021. “We have talked all year about our team’s efforts to reduce downtime and improve flow assurance through facility upgrades and field optimization. We were quite heavily hedged coming into the fourth quarter, and our ability to outproduce those hedges and capture an increasing price environment is a direct result of our ability to keep the wells flowing consistently.”
In addition, the CEO mentioned that a key highlight of the fourth quarter, and a real pivot point for Battalion; was their strategic refinancing. “We have demonstrated our operational proficiency in the field, and our recent well results speak to the significant upside on our acreage with wells that compete with the best in the basin.”
Furthermore, he stated that this term loan represents a vote of confidence in their assets and their team’s ability to develop them. The company’s intention is to ramp up activity in 2022. Its objective is driving significant growth in average daily production by year-end 2022 while remaining committed to capital discipline and operational efficiency.
Finally, Mr. Little mentioned that “2022 will be an exciting year for Battalion. We are eager to get back to development mode, and we believe our plan will generate substantial value growth for our shareholders in the years to come.”
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About Batallion Oil Corporation
Battalion Oil Corporation is an independent energy company. It is focused on the acquisition, production exploration, and development of liquids-rich assets in the Delaware Basin.