SAN ANTONIO, Oct. 4, 2017 /PRNewswire/ -- Lilis Energy, Inc. (NYSE American: LLEX), an exploration and development company operating in the Permian Basin of West Texas, today announced that it has entered into an agreement to acquire over 4,000 net contiguous/overlapping acres from a private seller for approximately $45.6MM in cash, subject to customary closing adjustments. The acquisition will increase the Company's acreage position in the Delaware Basin to over 15,000 net acres, exceeding the Company's year end 2017 acreage guidance. The transaction is currently expected to close in November 2017 and the Company has posted an acquisition overview presentation and updated corporate presentation to its website.
Acquisition Highlights:
Combined Permian Acreage Highlights:
Wildhog Highlights:
"We are extremely pleased with this acreage acquisition transaction. This acquisition is not only contiguous and overlapping to our existing core properties but also increases our overall working interest and operatorship. The results from the Wildhog provide further evidence of the significant productivity and potential of our eastern acreage," said Ron Ormand, Executive Chairman of Lilis Energy.
Target |
Median |
Median |
Color |
A |
215 |
329 |
grey |
B(1) |
175 |
107 |
blue |
C |
74 |
65 |
green |
XY |
131 |
100 |
violet |
Wildhog |
219 |
188 |
red star |
# |
Operator |
Well Name |
IP24 (boe) |
IP24/
|
IP24/
|
% Liquid |
Lateral Length |
Zone |
1000' (boe) |
1000' (bo) | |||||||
1 |
EOG |
Hound 30 Federal 704H |
4,528 |
647 |
498 |
77% |
7,000 |
A |
2 |
EOG |
Neptune 10 St. Com 701H |
5,327 |
628 |
465 |
74% |
8,482 |
A |
3 |
Matador |
Totum #211H |
2,247 |
514 |
401 |
78% |
4,371 |
A |
4 |
Lilis |
Hippo #1H |
1,917 |
467 |
346 |
74% |
4,100 |
B |
5 |
Lilis |
Lion #1H |
1,530 |
380 |
262 |
69% |
4,025 |
B |
6 |
EOG |
Beowulf 33 St. Com 601H |
2,765 |
379 |
330 |
87% |
7,289 |
A |
7 |
EOG |
Noah Brunson 1H |
3,124 |
334 |
n.a. |
n.a. |
9,340 |
B |
8 |
Lilis |
Grizzly #1H |
1,323 |
322 |
209 |
65% |
4,100 |
B |
9 |
Felix |
UL 4-21 #1H |
1,302 |
307 |
n.a. |
n.a. |
4,200 |
B |
10 |
Lilis |
Bison #1H |
2,014 |
292 |
219 |
75% |
6,900 |
B |
11 |
Felix |
UL Sunshine Mesa 29-21 #1H |
1,330 |
272 |
n.a. |
n.a. |
4,900 |
B |
12 |
Jagged Peak |
UL 28-27 #1H |
2,272 |
236 |
n.a. |
n.a. |
9,600 |
B |
13 |
Lilis |
Wildhog BWX State Com #1H |
997 |
219 |
188 |
86% |
4,567 |
B |
14 |
Felix |
Falcon State 28-36 #1H |
941 |
215 |
n.a. |
n.a. |
4,400 |
A |
15 |
Jagged Peak |
UL 4344-21 #1H |
1,761 |
176 |
150 |
85% |
10,000 |
B |
16 |
Forge |
UL 21 Pahaska #1H |
748 |
174 |
150 |
86% |
4,300 |
A |
17 |
Jagged Peak |
UL Beldin L J 1211-17 #2HX |
1,978 |
173 |
151 |
87% |
11,400 |
B |
18 |
Forge |
UL 21 Bighorn #1H |
1,621 |
172 |
146 |
85% |
9,400 |
A |
19 |
Endurance |
Talco 9 26 35 Fed 3H |
1,257 |
170 |
146 |
86% |
7,391 |
A |
20 |
Felix |
UL Elk Park 21-21 #1H |
768 |
168 |
n.a. |
n.a. |
4,600 |
B |
21 |
Jagged Peak |
UL 3031A-17 #1H |
1,548 |
162 |
139 |
86% |
9,500 |
B |
22 |
Jagged Peak |
UL 3031B-17 #1H |
1,439 |
143 |
120 |
84% |
10,000 |
B |
23 |
Felix |
UL 20 #1311H |
1,376 |
142 |
n.a. |
n.a. |
9,700 |
A |
24 |
RSP Permian |
Ludeman G #2603H |
890 |
131 |
100 |
76% |
6,813 |
XY |
25 |
Jagged Peak |
UL 2932-17 #1H |
1,175 |
113 |
95 |
84% |
10,400 |
B |
26 |
Mewbourne |
University B20 1 #W201PA |
333 |
74 |
65 |
88% |
4,499 |
C |
Source: Company disclosure, DrillingInfo, Wood Mackenzie, RSP Permian investor presentation Wolfcamp B excludes LLEX. |
Financing and Liquidity:
The Company believes its forecasted liquidity and future cash flows will be sufficient to fund the acquisition along with planned development through 2018. The acquisition will be funded in cash through the draw down of $45 million remaining under the Company's second lien term loan with Varde Partners. The Company does not anticipate the need to access the capital markets to fund expansion in the foreseeable future. The Company believes that its additional sources of liquidity including projected EBITDAX, cash, debt financings, warrant proceeds, and potential asset sales are sufficient to fund its currently anticipated capex budget. In addition, the Company has entered into hedging arrangements with various third parties and intends to commence a hedging program in the near future.
"The acquired acreage is highly accretive and contiguous/overlapping our existing Delaware properties. With existing liquidity and cash flow sufficient to fund this acquisition and our development programs through 2018, the Company remains well capitalized to continue executing on its stated growth and development plans. Varde Partners has been incredibly supportive and we are appreciative of the partnership we continue to develop with them. We are also very excited about the significance of the Wildhog results and the delineation of our eastern acreage position," said Joe Daches, Chief Financial Officer of Lilis Energy.
About Lilis Energy, Inc.
Lilis Energy, Inc. is a San Antonio-based independent oil and gas exploration and production company that operates in the Permian's Delaware Basin, considered amongst the leading resource plays in North America. Upon closing of the acquisition, Lilis's total net acreage in the Permian Basin will be over 15,000 acres. Lilis Energy's near-term E&P focus is to grow current reserves and production and pursue strategic acquisitions in its core areas. For more information, please visit www.lilisenergy.com.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These risks include, but are not limited to our ability to replicate the results described in this release for future wells; the ability to finance our continued exploration, drilling operations and working capital needs; our anticipated future cash flows and ability to access other sources of liquidity; all the other uncertainties, costs and risks involved in exploration and development activities; and the other risks identified in the Company's Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission (the "SEC"). Additionally, initial production rates are subject to decline over time and should not be regarded as reflective of sustained production levels. In particular, production from horizontal drilling in shale oil and natural gas resource plays and tight natural gas plays that are stimulated with extensive pressure fracturing are typically characterized by significant early declines in production rates.
Readers are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date hereof, and the Company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.
SOURCE Lilis Energy, Inc.
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