Printer Friendly

Lilis Energy to Upsize Wattenberg Acreage Acquisition.

M2 EQUITYBITES-June 11, 2015-Lilis Energy to Upsize Wattenberg Acreage Acquisition

(C)2015 M2 COMMUNICATIONS http://www.m2.com

11 June 2015 - US-based oil and gas exploration and production company Lilis Energy, Inc. (NASDAQ: LLEX) has amended a 5 May agreement with a private party seller and agreed to acquire an additional 375 net acres from previously granted right of first refusal acreage, bringing the total undeveloped acreage being acquired to 1,015 net acres in the core area of the Wattenberg Field targeting the Niobrara and Codell formations, the company said.

The additional acreage includes 11 authorisation for expenditures in place with an average working interest of 4.48% and a total drilling commitment of USD 3.2m.

Lilis said that the other terms of the agreement remain the same. Lilis will acquire non-operated leasehold working interests including interests in 53 producing wells and a 640 net acre block of undeveloped leasehold for a purchase price of USD 5.5m.

To accommodate the updated terms, the closing of the acquisition has been extended and is anticipated to occur on or prior to 19 June 2015, subject to final due diligence and satisfaction of customary closing conditions.

If the transaction is consummated, the company's acquisition would add a pre-tax present value of estimated future net revenues discounted at 10% (PV 10%) of approximately USD 3.7 m of proved developed producing reserves and approximately USD 52.1m total proved reserves in the Wattenberg Field, calculated using strip prices as of 31 May, for a total purchase price of USD 5.76m.

Additionally, Lilis has agreed to give the sellers an 8% carried working interest on future drilling on the south half of the original acquisition acreage.

It is anticipated that the company would pay an aggregate of approximately USD 4.8m for its proportionate share of future drilling and completion costs, currently in varying stages of development pursuant to the outstanding AFE's which includes the USD 3.2m mentioned above.

Lilis Energy, Inc. is a Denver-based independent oil and gas exploration and production company that operates in the Denver-Julesburg Basin, where it holds approximately 37,000 gross, 31,000 net acres.

((Comments on this story may be sent to info@m2.com))

COPYRIGHT 2015 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2015 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 EquityBites (EQB)
Date:Jun 11, 2015
Words:371
Previous Article:Naples Hotel Group Acquires Management Contract for Florida Property.
Next Article:KBR to Sell Building Group to Pernix for USD 22m.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters