Privately held Fury Resources Inc. agreed to acquire Delaware basin-operator Battalion Oil Corp., Houston, for $9.80/share, a deal valued at $450 million.
Preferred stock of Luminus Management and funds and accounts managed by Oaktree Capital Management will be exchanged for cash or preferred stock in Fury Resources. Several major shareholders have agreed to reinvest sale proceeds into the business, Battalion said in a release Dec. 15.
The acquisition of Battalion represents a return to the Delaware basin for Fury Resources, commented Avi Mirman, executive chairman of the board of Fury Resources.
As part of its third-quarter 2023 report, Battalion Oil noted its plans to continue exploring strategic alternatives for the company as it worked to raise money to support incremental activity plans.
Average daily net production and total operating revenue during third-quarter 2023 were 12,717 boe/d (46% oil) and $54.1 million, respectively, compared with production and revenue of 16,228 boe/d (50% oil) and $99.1 million, respectively, during third-quarter 2022. During the quarter, the company began drilling operations on a two-well pad in Monument Draw.
The company had a net loss available to common stockholders of $57.7 million for the quarter and an adjusted net loss available to common stockholders of $12 million.
The deal is expected to close in first-quarter 2024 subject to various closing conditions, including approval of Battalion’s stockholders.