Battalion Oil Corp. Divestiture of West Quito Draw Properties

Battalion Oil Corporation has entered into an Agreement of Sale and Purchase with MCM Delaware Resources, LLC for the divestiture of substantially all of its oil and natural gas properties and related assets in the West Quito Draw area, located in Ward County, Texas. The sale price is approximately $62.59 million, with an effective date of December 1, 2025, and an expected closing in the first quarter of 2026. The divested properties comprise approximately 6,207 net acres and accounted for about 12.4% of the Company's 2024 year-end proved reserves. Proceeds from the sale are intended to repay outstanding amounts under the Company's Senior Secured Credit Agreement and for general corporate purposes, including potential acquisitions and drilling expenditures. The purchase price is subject to customary adjustments. MCM has placed a deposit of approximately $6.26 million into escrow. The agreement includes customary representations, warranties, and covenants, with closing conditions that must be met by March 26, 2026. TenOaks Energy Advisors is serving as the financial advisor to Battalion Oil Corporation. There is no assurance the transaction will be completed on the terms or timing described, or at all.