Battalion Oil Corporation announced that it has entered into purchase agreements with returning investors Luminus Management, LLC, Oaktree Capital Management, LP, and LSP Investment Advisors, LLC, to issue 38,000 Series A-1 Redeemable Convertible Preferred Stock at an issue price of $975 for the gross proceeds of $37,050,000 on September 6, 2023. The issuance of Series A-1 Preferred Shares was approved by our board of directors. The private placement of the Series A-1 Preferred Stock pursuant to the Purchase Agreement was undertaken in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof.

The Conversion Price shall initially be $7.63, which may be adjusted from time to time as set forth herein.