- The newly acquired area adjoins the company’s existing Monument Draw position.
- The deal is expected to add about 30 new drilling locations targeting the Wolfcamp A, Wolfcamp B, and 3rd Bone Spring formations.
- Oil prices fell on Tuesday after U.S. President Donald Trump said that the Middle East conflict could end soon.
Battalion Oil Corp. (BATL), on Tuesday, announced the acquisition of 7,090 net acres of oil and gas assets in Ward County, Texas, from RoadRunner Resource in an all-stock deal.
Battalion will issue 485,000 shares of its common stock to complete the acquisition. The two companies had previously partnered on the acreage under a joint venture agreement.
The newly acquired area adjoins the company’s existing Monument Draw position, expanding its overall footprint in the region. The deal is expected to add about 30 new drilling locations targeting the Wolfcamp A, Wolfcamp B, and 3rd Bone Spring formations.
BATL shares were down 5%, tracking the broader oil market, having gained nearly 250% since the Middle East war began at the end of last month.
Oil Prices Fall After Trump’s Comments
Contracts for West Texas Intermediate (WTI) crude, expiring in May 2026, were down over 10% at $82 per barrel at the time of writing.
Oil prices fell on Tuesday after hitting a near four-year high in the previous session. The decline followed comments from U.S. President Donald Trump, who said the Middle East conflict could end soon and hinted at measures to stabilize global oil supply.
He also said the U.S. may waive some oil sanctions and deploy naval escorts for tankers passing through the Strait of Hormuz, a key shipping lane that accounts for nearly 20% of the global oil transportation.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits changed to ‘bullish’ from ‘extremely bullish’ a day earlier, amid ‘extremely high’ message volumes.
Retail was not convinced by Tuesday’s decline in oil prices, with one user stating that “nothing has changed” and that oil will return to $110 per barrel.
Another user spoke about the stock’s dilution.
Year-to-date, the stock has gained around 1,500%.
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