Lilis Energy Inc. agreed to sell a chunk of its northernmost Permian Basin acreage on Feb. 14 as the company continues to struggle with its debt payments.

In a news release, the Fort Worth-based independent said it had executed a purchase and sale agreement on Feb. 12 for the sale of about 1,185 undeveloped acres in New Mexico’s Lea County. An undisclosed buyer agreed to acquire the assets for net cash proceeds of roughly $24.9 million.

Lilis said it plans to use the proceeds to fund a substantial portion of its borrowing base deficiency, the initial payments of which have been extended for a third time, according to the company’s release on Feb. 14.

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