SAN ANTONIO, Feb. 21, 2018 /PRNewswire/ -- 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 its has executed an amendment with its Senior Lender, Second Lien Lenders and Preferred Equity Holder authorizing the repurchase of up to $10 million of the Company's common stock in the open market. The commencement of any buyback would occur upon the filing of the Company's 10-K, compliance with applicable law, Board approval at said time and as market conditions warrant. Lilis currently has approximately 54 million shares outstanding.
The Company believes that the current market price for Lilis stock offers the Company the ability to acquire its common stock at indicated valuation levels below those currently represented in the acreage acquisition market or by comparable publicly traded companies. With the closing of the Company's recently announced expansion of the its first lien credit facility and the recent issuance of $100 million in convertible perpetual preferred stock, the Company has the liquidity to pursue a buyback program, at the approved level, and fund the Company's announced capital budget while maintaining its financial strength.
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 is expected to be 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.
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.
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SOURCE Lilis Energy, Inc.
Wobbe Ploegsma, V.P. Finance & Capital Markets, 210-999-5400, ext. 31