Lilis Energy in Delaware basin acquisition

DENVER, Colorado -- Lilis Energy has acquired certain oil and gas properties in Winkler County, Texas, for a purchase price of $3 million. The company purchased the properties through a sale process under Section 363 of the Bankruptcy Code. The properties represent a 12% increase in its net Delaware basin leashold. The company's net acreage in the Delaware basin is now approximately 4,433 net acres, which represents a 28% increase since June 2016.

The properties, which offset the company's existing acreage position in the basin, consist of 500 net acres and includes a 78% working interest in a producing vertical well. The well holds the lease to all depths, from surface down to 22,000 ft, including the Wolfcamp, Bone Springs, and Avalon formations. The vertical well produces approximately 690 Mcfd (net) and has estimated PV-10 PDP value of approximately $3.5 million, using current commodity prices. The company has not yet estimated reserve potential for any further horizontal development.

"Essentially, we acquired a well at a discount to its PV-10 PDP value, and as a bonus, secured 500 net acres in the Delaware basin that are held by production. We will continue to utilize our strong cash position in a prudent manner, through a mix of further leasehold acquisition and drilling activity," said Avi Mirman, CEO of Lilis Energy.