Lilis Energy Inc. said Dec. 6 it had received a deficiency letter for its common stock as the Permian Basin focused independent E&P continues to evaluate strategic alternatives.

The letter, from the NYSE American LLC, said Lilis Energy is below compliance with the stock exchange’s continued listing standards because the company’s common stock has been selling for “a low price per share for a substantial period of time.”

Lilis Energy will have to proceed with a reverse stock split of its common stock unless it can demonstrate sustained price improvement no later than June 3, according to the company press release.

Based in Fort Worth, Texas, Lilis Energy operates in the Permian’s Delaware Basin where its current total net acreage is about 20,000 acres. On Nov. 13, Joseph C. Daches was named as the company’s CEO after serving in an interim basis following the retirement of Ron Ormand in June 2018.

Daches, formerly president and CFO, had joined Lilis Energy in 2016. Throughout his over 25-year career, he has helped guide several oil and gas companies through financial strategy activities, capital raises, and both public and private offerings, a press release said.

Still, Lilis Energy also hired a financial adviser to assist in exploring strategic alternatives, including potentially identifying additional sources of capital, following lackluster third-quarter results announced last month.

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