Lilis Energy Completes Fall Borrowing Base Redetermination
January 21 2020 - 6:00AM
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 its
lenders have completed the scheduled redetermination of the
Company’s borrowing base under the revolving credit agreement. As a
result of the redetermination, the borrowing base has been set at
$90 million.
As previously disclosed, the Company is
currently fully drawn against the prior $115 million borrowing base
under the revolving credit facility, and as a result of the
scheduled redetermination, a borrowing base deficiency in the
amount of $25 million exists. The Company will be required to repay
the amount of the borrowing base deficiency in four equal monthly
installments, with the first payment of $6.25 million scheduled to
occur on January 24, 2020.
The Company is engaged in active discussions
with its banks’ lenders and is currently considering various
transactions and methods to fund the borrowing base deficiency
payments on a timely basis. There is no assurance, however, that
such transactions will be completed or that the bank group will
agree to deficiency payment extensions. If the Company is unable to
repay the amount of the borrowing base deficiency within the time
period required under the revolving credit agreement, an event of
default would occur.
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 approximately 20,000 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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