Battalion Oil plans to start drilling two Monument Draw wells in January 2027

Battalion Oil Corp (NYSE:BATL) says it plans to begin drilling two wells at its Monument Draw asset in January 2027. The statement comes from the company's annual report filed on 2026-03-23: "We currently plan to commence drilling two wells in January 2027." The timing is given only as a month, so no specific start date has been set.

Why it matters

Monument Draw is the one asset in the valuation inputs with a stated estimate. In a figure dated 2025-05-14, the company put its oil prospective resource at 1 million barrels on a P50 basis. P50 means the estimate is set at the midpoint of the range of outcomes, so there is a roughly even chance the true volume is higher or lower. "Prospective" means the oil has not yet been found by drilling.

If the wells succeed, they would test whether that estimate holds up. If they do not, the estimate could be revised. The source gives no expected well results, costs or production rates.

What is uncertain

• Company interest: Battalion has not disclosed its share of Monument Draw. Without it, the 1 million barrel figure cannot be translated into volumes belonging to the company.
• Timing: The plan is stated as a current intention, and the filing warns that actual results may differ from forward-looking statements. The filing lists drilling rig and service availability and costs among the risks.
• Estimate age: The 1 million barrel figure is from May 2025, ahead of the drilling.

Recent company context

On 2026-08-07 Battalion repurchased Gen IV Investment Opportunities' Series A and Series A-1 preferred shares for $19.0 million in cash. Gen IV converted its remaining preferred stock into about 3.49 million common shares and now holds no preferred stock. Gen IV also agreed to a 12-month voting-support and lock-up commitment. The company describes the deal as simplifying its capital structure.

For the quarter ended 2026-06-30, Battalion reported revenue of $48.1 million and net income of $15.5 million. The inputs do not say how the January 2027 drilling would be funded, so the link between those results and the wells is not established here.

In mid-July 2026, several executives, including the chief executive, received equity awards or had related share transactions.