FORT WORTH, Texas, Feb. 28, 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, announced today that it has closed the previously announced sale of approximately 1,146 undeveloped net acres in the Company’s northernmost acreage in Lea County, New Mexico. The net cash proceeds of approximately $24.1 million will be used to fund the first two borrowing base deficiency installment payments under the amended revolving credit agreement aggregating $17.25 million, with the balance to be used for general corporate purposes. Two subsequent installment payments of $1.5 million and $6.25 million remain due on March 16, 2020 and April 14, 2020, respectively.
The Company continues to consider additional transactions to fund required repayments of the borrowing base deficiency on a timely basis. There is no assurance, however, that additional transactions will be completed or that the bank group will agree to further deficiency payment extensions. If the Company is unable to repay the remaining borrowing base deficiency as and when required under the revolving credit agreement, an event of default would occur under the revolving credit agreement.
In addition, the Company announced that Värde Partners, Inc., on behalf of certain of its affiliated private funds and investment vehicles (collectively, “Värde”), has extended the expiration date for its previously announced non-binding offer proposing to acquire all of the outstanding shares of common stock of the Company not owned by Värde for $0.25 per common share from February 27, 2020 to March 18, 2020. The special committee of the board of directors of the Company continues to evaluate the Värde offer as the special committee continues its process of evaluating other potential strategic alternatives with the assistance of its financial advisor, Barclays Capital Inc.
The special committee of the board of directors also cautions the Company’s shareholders and others trading in its securities that Värde’s offer is a preliminary proposal that does not constitute a binding commitment. There is no assurance that a definitive agreement will be executed or that the transaction contemplated in the Värde offer or any other transaction will be consummated. The Company does not anticipate making further public statements about this matter or the activities of the special committee unless it determines to enter into a definitive agreement for a transaction or the board of directors determines that no such transaction will be effected.
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 over 18,000 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
210-999-5400, ext. 31
Source: Lilis Energy Inc.