Battalion Oil Corporation (NYSE:BATL, "Battalion" or the "Company"))) today announced the execution of a letter of intent ("LOI") with an unaffiliated industry partner outlining the key terms of a Joint Development Agreement ("JDA").

Key Highlights

• Executed a LOI with an unaffiliated industry partner contemplating a JDA for an up to eight-well Monument Draw program (located in Ward County, Texas) that would provide shared capital and an accretive carry to Battalion while accelerating development of core inventory
• Battalion would continue to operate the wells and retain a majority working interest in the program
• Development targets the 3rd Bone Spring, Wolfcamp A, and Wolfcamp B formations in Monument Draw, building on the Company's recently announced expansion of sour gas compression capacity in Monument Draw
• This drilling program is expected to deliver very attractive returns and prove out extensive additional drilling locations
• Development transitions Battalion's operations to cube development across its primary benches, mirroring the successful co-development approach demonstrated by offset operators in the area and designed to maximize recovery and capital efficiency across the stacked-pay column
• This is a key step in our progress toward a multi-year drilling program to generate significant shareholder value
• Separately, the Company is also negotiating an accretive refinance of long-term debt and an oil transport and marketing partnership to further enhance the corporate benefit of this JDA

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