ADDED
Our working interests in 39,968 net acres in the Delaware Basin as of December 31, 2025 are in Pecos, Reeves, Ward and Winkler Counties, Texas.
As of December 31, 2025, we had 82 operated wells producing in this area in addition to minor working interests in 22 non-operated wells.
Our average daily net production for the year ended December 31, 2025 was 12,096 Boe/d.
At December 31, 2025, our estimated total proved oil and natural gas reserves were approximately 59.7 MMBoe, consisting of 31.8 MMBbls of oil, 11.6 MMBbls of NGLs and 97.5 Bcf of natural gas, as prepared by our independent reserve engineering firm, Netherland, Sewell Associates, Inc.
Approximately 60% of our estimated proved reserves were classified as proved developed and we maintain operational control of 99.8% of our estimated proved reserves as of December 31, 2025.
On December 18, 2025, we entered into an agreement of sale and purchase with MCM Delaware Resources, LLC ( MCM ) to sell substantially all of our oil and natural gas properties and related assets in the West Quito Draw area located in the Southern Delaware Basin in Ward County, Texas (the West Quito Assets ) for a total sales price of approximately $62.6 million, subject to adjustment for accounting between the effective date of December 1, 2025 and the closing date and other customary adjustments (the West Quito Divestiture ).
The West Quito Divestiture closed on February 24, 2026 for an adjusted sales price of $60.1 million.
The West Quito Assets include approximately 6,100 net acres in Ward County, Texas which contributed approximately 15% of our annual production for the year ended December 31, 2025 and accounted for approximately 6.0 MMboe, or approximately 10%, of our proved reserves at December 31, 2025.
We currently plan to commence drilling two wells in January 2027.
We believe our internally-generated cash flows from operations, cash on hand, proceeds from the West Quito Divestiture and the private placement equity offering, and existing preferred equity commitments under support letters from our largest investors will provide us with sufficient liquidity to execute our capital and operating program over the next twelve months, address near-term debt maturities of $22.5 million in 2026, and maintain compliance with our debt covenants.
REMOVED
On January 21, 2020, we filed a Certificate of Amendment to our Amended and Restated Certificate of Incorporation with the Delaware Secretary of State to effect a change of our corporate name from Halc n Resources Corporation to Battalion Oil Corporation.
Our working interests in 40,476 net acres in the Delaware Basin as of December 31, 2024 are in Pecos, Reeves, Ward and Winkler Counties, Texas.
As of December 31, 2024, we had 91 operated wells producing in this area in addition to minor working interests in 13 non-operated wells.
Our average daily net production for the year ended December 31, 2024 was 12,667 Boe/d.
At December 31, 2024, our estimated total proved oil and natural gas reserves were approximately 64.9 MMBoe, consisting of 34.8 MMBbls of oil, 12.6 MMBbls of NGLs and 105.4 Bcf of natural gas, as prepared by our independent reserve engineering firm, Netherland, Sewell Associates, Inc.
Approximately 56% of our estimated proved reserves were classified as proved developed and we maintain operational control of 99.9% of our estimated proved reserves as of December 31, 2024.
In December 2024, we entered into a drilling contract and have begun a six-well campaign scheduled to conclude before the end of the second quarter 2025 that will bring new production online across our assets.
Enhance Returns Through Continued Improvements in Operational and Cost Efficiencies.
We believe our internally-generated cash flows from operations, cash on hand, and preferred equity funding and commitments during 2024 as further described below will provide us with sufficient liquidity to execute our capital and operating program over the next twelve months, address near-term debt maturities of approximately $16.9 million in 2025, and maintain compliance with our debt covenants.
On December 26, 2024, we and our wholly-owned subsidiary Halc n Holdings, LLC (the Borrower ) entered into the Second Amended and Restated Senior Secured Credit Agreement (the 2024 Term Loan Agreement ) with Fortress Credit Corp., as administrative agent, and certain other financial institutions party thereto, as lenders.