Commodities
Battalion Oil Buys New Texas Assets Amid Crude Price Volatility
Battalion Oil has acquired new oil and gas assets in Texas through an all-stock deal. The company will issue 485,000 shares of its common stock to complete the purchase of 7,090 net acres from RoadRunner Resource. This acquisition adjoins Battalion's existing Monument Draw position, expanding its overall footprint in the region.
The newly acquired area is expected to add about 30 new drilling locations targeting the Wolfcamp A, Wolfcamp B, and 3rd Bone Spring formations.
Oil prices fell on Tuesday after U.S. President Donald Trump commented that the Middle East conflict could end soon, hinting at measures to stabilize global oil supply.
Battalion Oil Corp.'s (BATL) shares were down 5% as a result of the decline in oil prices, despite having gained nearly 250% since the beginning of the Middle East war. The stock has been volatile due to its strong connection to crude prices.