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Battalion Oil Corporation has executed a long-term contract to expand its sour gas compression capacity at the Monument Draw project by 50%. This expansion will bring total capacity to over 50 MMcfd, effectively debottlenecking the company's midstream infrastructure. The new facilities are scheduled to come online in early Q3 2026, providing critical support for both current and future production capabilities in Ward and Winkler Counties. Management highlighted that current well economics are robust, delivering an internal rate of return (IRR) exceeding 80% at recently hedged commodity prices. This strategic move aims to facilitate maximum production and enhance the value of the company's drilling inventory. The project underscores Battalion Oil's focus on infrastructure optimization to drive long-term growth in the energy sector.
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