- Exchanges approximately 750 net acres on an acre-for-acre basis in core New Mexico Delaware acreage
- Increases Working Interest and Net Revenue Interest to 100% in core sections including those containing production from the Wildhog and Prizehog wells
- Concentrates acreage in core operational area and eliminates CAPEX exposure in traded non-operated sections
- Immediate increase in production and PDP and Proved Reserves at closing
HOUSTON, Aug. 02, 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 750 net acres in Lea County, New Mexico. The transaction increases Lilis’ Gross Working Interest (GWI) in its New Mexico Delaware Basin acreage up to 100% in core sections. All the acreage that was traded away was in non-operated sections with lower working interests. The transaction is subject to customary adjustments and is expected to close in the near future.
“This transaction is another key milestone in connection with our strategic 2018 initiative to core up acreage and increase our average working interest in core operating areas. Following last month’s announcement of an accretive acreage exchange on our Texas property, this trade in New Mexico increases our working interests for future drilling plans, as well as in sections with four producing wells including Wildhog 1 and 2 and Prizehog 1 and 2. We recently completed Wolfcamp XY and Wolfcamp A wells, in addition to previously completed Wolfcamp B wells, with excellent results in these sections,” said Ronald D. Ormand, Chairman and CEO.
Upon closing, the acreage trade provides Lilis an increase in PDP and PUD reserves, along with an immediate increase in both current and future production. The complementary acreage is concentrated in four sections of the Company’s main operational area, including 100% working interest in the sections incorporating the Wildhog and Prizehog wells. 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 19,800 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.
V.P. Finance & Capital Markets
210-999-5400, ext. 31
Lilis Energy Inc.