Deals - Acquisition, Mergers, Divestitures

Battalion Oil to sell West Quito Draw assets to MCM Delaware Resources for $62.6MM

Email    |    Print    |    Bookmark

You Need to login first

   |    Sunday,December 28,2025

Battalion Oil has agreed to sell its West Quito Draw assets in the Southern Delaware Basin to MCM Delaware Resources, LLC for approximately $62.6 million, according to a recent company filing.

The divestiture includes substantially all of Battalion’s oil and gas properties and related assets in the West Quito Draw area of Ward County, Texas. The transaction is effective Dec. 1, 2025 and is expected to close in 1Q 2026, subject to customary closing conditions and purchase price adjustments.

Battalion said it intends to use the net proceeds primarily to repay borrowings under its senior secured credit facility, with remaining proceeds available for general corporate purposes, including potential acquisitions and planned drilling expenditures.

The West Quito Draw package includes approximately 6,207 net acres and ~8 MMBoe of proved reserves, representing about 12.4% of Battalion’s year-end 2024 proved reserves. As part of the agreement, the buyer has deposited approximately $6.26 million into escrow, which will be credited toward the purchase price at closing.

The purchase agreement contains customary termination protections, including a provision allowing either party to terminate if total purchase price adjustments exceed 20% of the purchase price (approximately $12.5 million) or if the transaction has not closed by March 26, 2026. Battalion was advised on the transaction by TenOaks Energy Advisors.

Recent Deals/Transactions

---

Date Annouced	Category	Headline	Buyer(s)	Seller(s)	Value ($mm)
02/26/2026	E&P	Diversified Energy Extends East Texs Footprint in $245MM Sheridan Deal
02/18/2026	E&P	SM Energy Sells Eagle Ford Asset for $950 Million
02/17/2026	E&P	Ovintiv Sells Anadarko Assets for $3 Billion
02/02/2026	E&P	Vista Energy Acquires Equinor Non-Working Interest In Vaca Muera
02/02/2026	E&P	Devon Acquires Coterra Energy; Bulk Up on Permian, Adds Gas Bank
01/16/2026	E&P	Mitsubishi’s Strategic Entry into U.S. Shale with Aethon’s Haynesville Platforms
12/22/2025	E&P	Harbour Energy Enters GOM; Buys LLOG
12/18/2025	E&P	JAPEX Secures First U.S. Operated Position in $1.26B DJ Basin Acquisition of Verdad Resources
12/08/2025	E&P	Antero Resources Acquires HG Energy II for $3.9B
12/08/2025	E&P	Infinity Natural and Northern Oil & Gas Acquire Antero's Ohio Utica for $1.2B
				Total