Battalion Oil Corporation Announces \$15 Million Capital Raise and Improved Production Performance

Key Highlights

• Definitive Agreement for Capital Raise: Battalion Oil Corporation (NYSE American: BATL) has entered into a definitive agreement to raise approximately \$15 million through a private placement.
• Offering Terms: The capital will be raised at a price of \$5.50 per share of common stock and/or common stock equivalents, which include prefunded warrants. The investment is backed by a new, significant institutional investor.
• Net Proceeds: After deducting placement agent fees and estimated offering expenses, Battalion expects to receive net proceeds of about \$14.1 million.
• Use of Proceeds: The company intends to use the net proceeds for working capital and general corporate purposes.
• Role of Placement Agent: Roth Capital Partners served as the sole placement agent for the offering.
• Closing Date: The offering is expected to close on March 4, 2026, subject to customary closing conditions.
• Resale Registration: Battalion has committed to file a resale registration statement on Form S-3 with the SEC within 20 days of closing, allowing for the resale of the shares and warrants issued in the private placement.
• Production Update: The company reported a notable operational improvement, with average oil production increasing by approximately 1,200 net barrels of oil per day in January compared to the December average, due to enhanced processing capability and greater operational reliability.

Key Details for Shareholders

• Potential Share Price Impact:
  • The capital raise introduces potential dilution, as new shares and warrants will be issued, which may impact the share price.
  • The participation of a new fundamental institutional investor may be viewed positively, indicating confidence in the company’s future prospects.
• Liquidity and Growth:
  • The additional funds will strengthen Battalion’s balance sheet and provide greater financial flexibility for ongoing operations and potential growth opportunities.
• Regulatory and Legal Considerations:
  • The securities offered have not been registered under the Securities Act of 1933 and cannot be resold in the U.S. unless a registration statement is declared effective or an exemption applies. Battalion’s commitment to register the resale of these securities may facilitate future liquidity for investors.
• Operational Performance:
  • The increase in average oil production suggests improved operational efficiency, which could lead to higher revenues and profitability if sustained.
• Forward-Looking Statements and Risks:
  • The offering’s completion is subject to market and other conditions, and there is no assurance it will be finalized or that the final terms will match those announced.
  • The company has highlighted risks related to market conditions, cash requirements, and other uncertainties that may affect actual outcomes.

Company Overview

Battalion Oil Corporation is an independent energy company focused on the acquisition, production, exploration, and development of onshore oil and natural gas properties in the United States.

Contact Information

• Chief Executive Officer: Matthew B. Steele
• Phone: 832-538-0300
• Website: www.battalionoil.com

Disclaimer

This article contains forward-looking statements subject to various risks and uncertainties. Actual results may differ materially from those anticipated. This is not an offer to sell or the solicitation of an offer to buy any securities. Investors should review Battalion Oil Corporation’s filings with the Securities and Exchange Commission and consult their financial advisors before making investment decisions.

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