Item 7.01 Regulation FD Disclosure

On May 16, 2022, Battalion Oil Corporation (the "Company") issued a press release announcing entry into the GTA (as defined below in Item 8.01) by certain of its wholly-owned subsidiaries. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Exhibit 99.1 shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.




Item 8.01 Other Events

Certain wholly-owned subsidiaries of the Company have entered into a Gas Treating Agreement ("GTA") dated effective as of March 1, 2022, which was finalized upon the satisfaction of all conditions precedent on May 11, 2022, with Brazos Amine Treater, LLC ("BAT") for the removal of hydrogen sulfide (H2S) and carbon dioxide (CO2) from gas produced from the Company's Monument Draw area. BAT is a joint venture with Caracara Services, LLC ("Caracara") that will develop an acid gas treatment facility in Winkler County, Texas (the "Facility"). Caracara will provide all necessary capital for the construction of the Facility. The Company's affiliates contributed a wellbore with an approved permit for the injection of acid gas and surface land for the Facility. The Company retains a 5% equity interest in BAT in exchange for its contribution. The Facility is required to come online on or before twelve months from the effective date of the GTA, is expected to have an initial capacity of approximately 30 MMcf per day, and will be designed to treat up to 10% combined concentrations for H2S and CO2. Additionally, the Company will workover the acid gas injection well prior to Facility in-service. Under the GTA, the Company will pay a treating rate that varies based on volumes delivered to the Facility for a term that will last 20 years from the in-service date of the Facility. Also under the GTA, the Company has a minimum volume commitment of 20 MMcf per day, with certain rollover rights and start-up flexibility, for an initial term of five years from the in service date of the Facility, which can be extended up to seven years under certain conditions.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

The following exhibits are furnished as part of this Current Report on Form 8-K:



Exhibit No.                                 Description

99.1             Press release issued by Battalion Oil Corporation dated May 16,
               2022.
104            Cover Page Interactive Data File (embedded within the Inline XBRL
               document).


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