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 Monument Draw in January 2027. The statement appears in the company's annual report, filed on 23 March 2026: "We currently plan to commence drilling two wells in January 2027." The company gave a month rather than a specific date.

What is at stake

Monument Draw is the one asset for which the company has published a volume estimate. It carries a P50 oil prospective estimate of 1 million barrels, stated on 14 May 2025. P50 means the company regards the figure as an even-odds, middle-case outcome. "Prospective" means the oil has not yet been confirmed by drilling, so the wells are the step that would test the estimate.

Battalion has not disclosed its interest in Monument Draw. That matters because the share of any oil that belongs to the company depends on that interest. Without it, the 1 million barrel figure cannot be translated into volumes attributable to Battalion shareholders.

What is uncertain

• Timing: The plan is stated as a current intention, and drilling schedules in the industry can move. The annual report's risk list names the cost and availability of drilling rigs and services, along with drilling and operating risks.
• Results: The estimate is an unproven prospective figure, and actual results could differ materially.
• Funding: The company lists its ability to generate enough cash flow or borrowings to develop its undeveloped acreage as a risk.

Company backdrop

Battalion reported quarterly revenue of $48.1 million and net income of $15.5 million for the period ended 30 June 2026.

On 7 August 2026 the company bought out preferred holder Gen IV Investment Opportunities. It repurchased Gen IV's 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.

In July 2026, several executives received option grants or acquired shares in related equity transactions, including Chief Executive Officer Matthew Steele, who received options over 283,100 shares.

What to watch

Investors will want to see whether the January start holds, whether the company states its Monument Draw interest, and what the wells show about the 1 million barrel estimate. If the wells confirm oil at that scale, it would be a modest but concrete addition to what the company can show for the area. If they do not, the estimate would likely need revisiting.