Fury Resources to Acquire Battalion Oil for $450 Million
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Battalion Oil Corporation has entered into an agreement and plan of merger with Fury Resources, Inc. Fury Resources will acquire all of the outstanding shares of common stock of Battalion for $9.80 per share in cash, which represents a total transaction value of approximately $450 million.
The transaction is expected to close in the first quarter of 2024, subject to various closing conditions. Such conditions include customary closing conditions, such as the approval of Battalion’s stockholders.
In connection with the transaction, the rollover stockholders, who collectively own 61.61 percent of the common stock of Battalion, entered into a voting agreement with Fury Resources to which they have agreed, among other things, to vote 6,254,652 of their shares of common stock, which in the aggregate represents 38 percent of the total voting power of the shares of capital stock of the company, in favor of adopting the merger agreement.
“We are excited to announce this transaction with Battalion and believe we are well positioned to drive value growth for our investors as we return the asset to active development. It has been a pleasure working with the Battalion team on this transaction, and we look forward to continuing that work as we move toward a successful close,” said Avi Mirman, executive chairman of the board of Fury Resources.
“The acquisition of Battalion represents a return to the Delaware Basin for our team, which now includes Battalion’s former CEO Richard Little. Our team has a strong understanding of the subsurface as well as the capital constraints that have previously hampered the company’s ability to exploit this asset. With the benefit of a newly revived balance sheet, we believe we can leverage our deep knowledge of the basin and combined operational excellence to fully unlock the asset’s potential,” added Mirman.
Additionally, we are excited to explore the opportunities provided to the company through its joint venture with Caracara. By offering the ability to drill locations with higher H2S volumes, this joint venture will allow the company to exploit additional drilling and acquisition opportunities which may not be available to others in the region,” said Mirman.
“As part of this transaction, several of Battalion’s major shareholders have agreed to reinvest proceeds from this sale into the ongoing business. We view this as a vote of confidence in our ability to develop this asset and drive profitable growth. This acquisition represents a compelling value proposition for our investors and we are eager to get to work,” concluded Mirman.
“It has been a pleasure working with Avi Mirman and his team to get the transaction to this point. Avi has a plan to become a premier player in the Delaware Basin. With the additional investment capital provided by the transaction, the company will finally be in a position to fully develop the Battalion asset base and position the company, its investors, and its employees for success,” said Matt Steele, Battalion CEO.
Fury Resources is a privately held exploration and production company focused on value creation through the acquisition and exploitation of assets in the Permian Basin. The team is comprised of core individuals who are long-term oil and gas veterans, and have in the past successfully grown Lilis Energy, a struggling $3 million market cap exploration and production company, to well over $550 million, by the acquisition, organic growth, and development of Permian Basin properties. With expertise and talent in the team, Fury Resources is positioned and capitalized to grow in the area organically and through future acquisitions.
Battalion Oil Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
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