Corporate News Blog Lilis Energy to Buy Over 4,000 Net Contiguo - Erie News Now | WICU & WSEE in Erie, PA

Corporate News Blog Lilis Energy to Buy Over 4,000 Net Contiguous/Overlapping Acres from Private Seller

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LONDON, UK / ACCESSWIRE / October 6, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Lilis Energy, Inc. (NYSE: LLEX), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=LLEX The Company announced on October 04, 2017 that it has signed an agreement to acquire over 4,000 net contiguous/overlapping acres from a private seller for approximately $45.6 million cash. The transaction is subject to customary closing adjustments and is expected to be completed in November 2017. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on LLEX. Go directly to your stock of interest and access today’s free coverage at:

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Acquisition Benefits

The acquisition will increase Lilis Energy’s acreage position in the Delaware Basin to over 15,000 net acres, exceeding the Company’s year-end 2017 acreage goal.

It will result in adding over 4,000 net contiguous/overlapping acres located in the core of the Delaware Basin.

The transaction is also likely to add over 150 net potential locations to inventory.

Acquisition Likely to Increase Lilis Energy’s Overall Working Interest and Operatorship

Ron Ormand, Executive Chairman of Lilis Energy, expressed that the Company is extremely pleased with this acreage acquisition transaction. This acquisition is not only contiguous and overlapping to the Company’s existing core properties but also increases its overall working interest and operatorship.

Acquisition Financing

The Company will fund the acquisition in cash through the drawdown of $45 million remaining under its second lien term loan with Varde Partners.

It anticipates that its forecasted liquidity and future cash flows will be sufficient to fund the acquisition along with planned development through 2018, and does not the need to access the capital markets to fund expansion in the foreseeable future.

Lilis Energy believes that its additional sources of liquidity including projected earnings before interest, taxes, depreciation, depletion, amortization, and exploration expenses (EBITDAX), cash, debt financings, warrant proceeds, and potential asset sales are sufficient to fund its currently anticipated CapEx budget.

It has also entered into hedging arrangements with various third parties and wants to commence a hedging program in the near future.

Acquired Acreage is Highly Accretive

Joe Daches, CFO of Lilis Energy, stated that the acquired acreage is highly accretive and contiguous/overlapping the Company’s existing Delaware properties. With existing liquidity and cash flow sufficient to fund this acquisition, the Company remains well capitalized to continue executing on its stated growth and development plans. John added that Varde Partners has been incredibly supportive and Lilis Energy is appreciative of the partnership it continues to develop with them.

About Lilis Energy, Inc.

Founded in 2007, Lilis Energy, Inc. is a San Antonio-based independent oil and gas exploration and production company, operating in the Permian’s Delaware Basin. The Company is considered amongst the leading resource plays in North America. Lilis Energy’s primary business objective is to increase its Delaware Basin leasehold position, reserves, production, and cash flows at attractive rates of return on invested capital in order to enhance shareholder value.

Last Close Stock Review

On Thursday, October 05, 2017, the stock closed the trading session at $5.00, rising 4.60% from its previous closing price of $4.78. A total volume of 405.70 thousand shares have exchanged hands, which was higher than the 3-month average volume of 265.29 thousand shares. Lilis Energy’s stock price skyrocketed 20.19% in the last one month, 42.05% in the past six months, and 64.47% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 61.29%. The stock currently has a market cap of $261.20 million.

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