Lilis Energy Receives Extension on Initial Borrowing Base Deficiency Payment and Signs Purchase and Sale Agreement to Divest ...
February 14 2020 - 4:30PM
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 the
Company’s bank lending group has agreed to extend the due date for
the first two installment payments on the borrowing base deficiency
under its revolving credit agreement that resulted from the
recently announced borrowing base redetermination. The amendment to
the revolving credit agreement provides for an extension of the
first and second installment payments from February 18, 2020 to
February 28, 2020. The due dates for the two subsequent installment
payments remain March 16, 2020 and April 14, 2020.
In addition, on February 12, 2020, the Company
executed a purchase and sale agreement for the sale of
approximately 1,185 undeveloped net acres, being the Company’s
northernmost acreage in Lea County, New Mexico, for expected net
cash proceeds of approximately $24.9 million. Proceeds will be used
to fund a substantial portion of the borrowing base deficiency with
the balance to be used for general corporate purposes.
The Company will continue to consider additional
transactions to fund 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 borrowing base deficiency as and when required under the
revolving credit agreement, an event of default would occur under
the revolving credit agreement.
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.
Forward-Looking Statements:
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.
Contact:Wobbe PloegsmaV.P.
Capital Markets & Investor Relations210-999-5400, ext. 31
Lilis Energy (AMEX:LLEX)
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