Published: April 5, 2018 |

[Click image to enlarge]

Lilis Energy, an exploration and development company operating in the Permian Basin of West Texas and Southeastern New Mexico, has acquired approximately 2,798 net acres in southeastern New Mexico in the Delaware Basin.

Aggregate consideration for the Acquisition is ~$65 million, consisting of $40 million in cash and ~$25.3 million (1) consisting of ~ 6.9 million shares of common stock.

“We are pleased to announce the closing of this transaction.  This strategic transaction enhances our overall position in the Northern Delaware Basin, provides the Company substantial critical mass in a contiguous area surrounding our existing New Mexico properties and increases our net acreage position closer to our 2018 goal of 20,000 net acres.  The acquisition also provides the Company with multiple locations and benches for drilling, including a substantial number of longer laterals.  We intend to drill four wells in New Mexico under our current 2018 budget, targeting the Wolfcamp A and XY, including two longer lateral wells.  We are also reviewing expanding that activity with additional longer lateral length wells in 2018 and 2019,” said Ron Ormand, Lilis’ executive chairman.

“The overall plan for 2018 is to focus on delineation and de-risking of our acreage position through the development of our eastern acreage in Texas.  In addition, we intend to continue drilling out and proving up additional benches throughout our acreage, including the Wolfcamp A, B, and XY and the 2nd and 3rd Bone Springs.  We have enhanced our growth prospects for 2018 and beyond with the addition of this acreage and our delineation program should further demonstrate the value of our acreage,” Mr. Ormand concluded.

ACQUISITION HIGHLIGHTS

Approximately 2,798 overlapping (84 percent operated) and contiguous net acres in Lea County, New Mexico;

Largely contiguous acreage block adds more than 150 net locations (2)

Potential targets in the Wolfcamp A, Wolfcamp XY, Wolfcamp B and 2nd and 3rd Bone Spring zones, along with further upside from additional benches;

Adds ~72 gross locations suitable for longer lateral developments of 1½ mile plus laterals

~1,200 net locations across the combined acreage position

Over ~70 percent of the acreage being HBP, providing the ability to control timing of development

Average adjusted per acre cost of ~$17,274 (3) with net production of 425 Boepd for the year ended December 31, 2017

Source: Energy Business Review

To stop by Lilis’ website, CLICK HERE

Be in-the-know when you’re on-the-go!