Battalion Oil expects double digit growth in daily oil volumes over its 2021 exit rate, it said in fourth-quarter and full-year 2021 results.
The Delaware basin-focused company started its 2022 capital program in December 2021 with a 3 well-pad at Monument Draw and expects to keep one rig running this year, maintaining flat production while driving double digit growth in daily oil production by yearend.
The company intends to ramp up activity, “driving significant growth in average daily production by year-end 2022 while remaining committed to capital discipline and operational efficiency,” said Richard Little, chief executive officer.
Operations
Average daily production in fourth-quarter 2021 was 17,283 boe/d and 16,241 boe/d for the full year. Proved reserves were 95.9 MMboe, a 51% increase over yearend 2020 reserves.
Full year 2021 production averaged 16,241 boe/d compared to average daily production of 16,858 boe/d for 2020. Average daily production in 2020 includes about 600 boe/d of production associated with properties sold in December 2020. Excluding the impact of the divested properties, average daily production in 2021 is in line with 2020.
Average daily oil and natural gas production was impacted by the temporary shut-in of production amounting to about 300 boe/d and 1,300 boe/d for the year ended Dec. 31, 2021 and 2020, respectively.
In 2021, Battalion drilled and cased 2 gross (2 net) operated wells, completed 6 gross (6 net) operated wells, and put online 6.0 gross (6 net) operated wells.
Total operating revenues for 2021 were about $285.2 million compared to $148.3 million for 2020.
The company reported a net loss to common stockholders for full-year 2021 of $28.3 million. After adjusting for selected items, Battalion reported net income to common stockholders for full-year 2021 of $17.1 million.