- Exchange approximately 1,500 net acres on an acre for acre basis
- Significantly increases Working Interest and Net Revenue Interest in core Texas Delaware acreage
- Concentrates acreage in core operational area and adds over 100 net operated locations
- Immediate increase in production and PDP and PUD reserves at closing
HOUSTON, June 11, 2018 (GLOBE NEWSWIRE) — Lilis Energy, Inc. (NYSE American:LLEX), an exploration and development company operating in the Permian Basin of West Texas and Southeastern New Mexico, announced today that it has entered into an acre-for-acre trade of approximately 1,500 net acres in Winkler and Loving counties, Texas. The transaction increases Lilis’ Gross Working Interest (GWI) in its Texas Delaware Basin asset up to 35% and further concentrates the Company’s acreage in the Company’s main areas of operational activity. All of the acreage that was traded was in non-operated sections with lower working interests. The transaction is subject to customary adjustments and is expected to close in the next 45 days.
“This transaction is significant in achieving one of our key strategic objectives of 2018, to increase concentration and working interest in core areas. This trade increases our working interests in our core operated blocks within our Delaware acreage in Texas, delivers an increase in current net production and is structured as an acre for acre trade. In addition, the production and working interests added from this transaction and additional wells in completion moves us closer to our year-end target of 7,500 net Boepd, which we expect to exceed well before year end. We will continue to actively seek to core up acreage and strategically increase our average working interest in the basin,” said Ronald D. Ormand, Chairman and CEO.
Upon closing, the acreage trade provides Lilis a significant increase in PDP and PUD reserves, along with a net gain of approximately 500 – 1,000 Boepd. The complementary acreage is concentrated in two sections of the Company’s main operational area, in which Lilis is currently operating and completing wells. The Company’s operatorship in five key drilling units will increase up to 90% GWI, resulting in increases in working interest in multiple upcoming 2018-2019 wells. In addition, the transaction adds approximately 100 net operated locations targeting the Wolfcamp A, B and XY, Bone Springs, and additional benches. Upon closing, Lilis will provide updates to the increase in reserves and production.
About Lilis Energy, Inc.
Lilis Energy, Inc. is a Houston-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. Lilis’ current total net acreage in the Permian Basin is over 19,000 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.