FORT WORTH, Texas, Jan. 21, 2020 (GLOBE NEWSWIRE) -- Lilis Energy, Inc. (NYSE American: LLEX) (the “Company”), an exploration and production company operating in the Permian Basin of West Texas and Southeastern New Mexico, today announced that its lenders have completed the scheduled redetermination of the Company’s borrowing base under the revolving credit agreement. As a result of the redetermination, the borrowing base has been set at $90 million.
As previously disclosed, the Company is currently fully drawn against the prior $115 million borrowing base under the revolving credit facility, and as a result of the scheduled redetermination, a borrowing base deficiency in the amount of $25 million exists. The Company will be required to repay the amount of the borrowing base deficiency in four equal monthly installments, with the first payment of $6.25 million scheduled to occur on January 24, 2020.
The Company is engaged in active discussions with its banks’ lenders and is currently considering various transactions and methods to fund the borrowing base deficiency payments on a timely basis. There is no assurance, however, that such transactions will be completed or that the bank group will agree to deficiency payment extensions. If the Company is unable to repay the amount of the borrowing base deficiency within the time period required under the revolving credit agreement, an event of default would occur.
About Lilis Energy, Inc.
Lilis Energy, Inc. is a Fort Worth based independent oil and gas exploration and production company that operates in the Permian’s Delaware Basin, considered among the leading resource plays in North America. Lilis’ current total net acreage in the Permian Basin is approximately 20,000 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 make the required repayments of the Borrowing Base Deficiency; the ability to finance our continued exploration, drilling operations and working capital needs; 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. Investors 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 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. Capital Markets & Investor Relations
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Source: Lilis Energy Inc.