Houston, Texas, May 05, 2026 (GLOBE NEWSWIRE) --  Battalion Oil Corporation (NYSE American: BATL, “Battalion” or the “Company”) today announced the execution of a letter of intent (“LOI”) with an unaffiliated industry partner outlining the key terms of a Joint Development Agreement (“JDA”). Key Highlights Executed a LOI with an unaffiliated industry partner contemplating a JDA for an up to eight-well Monument Draw program (located in Ward County, Texas) that would provide shared capital and an accretive carry to Battalion while accelerating development of core inventory Battalion would continue to operate the wells and retain a majority working interest in the program Development targets the 3rd Bone Spring, Wolfcamp A, and Wolfcamp B formations in Monument Draw, building on the Company's recently announced expansion of sour gas compression capacity in Monument Draw This drilling program is expected to deliver very attractive returns and prove out extensive additional drilling locations Development transitions Battalion's operations to cube development across its primary benches, mirroring the successful co-development approach demonstrated by offset operators in the area and designed to maximize recovery and capital efficiency across the stacked-pay column This is a key step in our progress toward a multi-year drilling program to generate significant shareholder value Separately, the Company is also negotiating an accretive refinance of long-term debt and an oil transport and marketing partnership to further enhance the corporate benefit of this JDA Management Comments Battalion has executed an LOI with an unaffiliated industry partner contemplating a JDA to jointly fund the development of an up to eight-well program in Monument Draw, located in Ward County, Texas.