Lilis Energy Closes Previously Announced Undeveloped Acreage Sale And Receives Further Extension On The Take-Private Offer Fr...
February 28 2020 - 4:05PM
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.
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
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