Lilis Energy Inc. (NasdaqGS: LLEX) closed $7.5 million in a private equity placement, the company said Jan. 22. The restricted units in the private placement consist of one common share and one common stock purchase warrant. At $2 per unit, 3,750,000 of these units were sold, Lilis Energy added.
Purchase warrants are exercisable for three years, at $2.50 per share, beginning six months from the issuance date, the company said.
"The confidence and commitment exemplified by our shareholders, directors and management, who are participating in this financing is especially gratifying," said company president Avi Mirman.
He added, "this financing provides Lilis Energy with the capital required to complete the initial development phases on both of its key Wattenberg prospects that will target the horizontal development of the Niobrara and Codell formations."
More than $1 million of the offering, subject to shareholder approval, will include the company’s board of directors and officers, the company said. Proceeds will also fund its working capital and corporate purposes, the company said.
"Our immediate plans include the drilling of five horizontal wells in our North and South Wattenberg Prospects. Full development of both of these prospects will require the drilling and development of up to 18 horizontal wells," Mirman continued.
T.R. Winston & Company LLC was the placement agent, the company said.
Lilis Energy is a Denver-based independent oil and natural gas E&P company operating in the Denver-Julesburg Basin where it holds about 110,000 net acres.
Recommended Reading
Permian Gas Finds Another Way to Asia
2024-04-30 - A crop of Mexican LNG facilities in development will connect U.S. producers to high-demand markets while avoiding the Panama Canal.
What's Affecting Oil Prices This Week? (April 29, 2024)
2024-04-29 - Stratas Advisors says even with the reported drawdown in U.S. crude inventories, the price of Brent crude oil remains below the upward channel that had been in place since January of this year.
Hedge Funds Retreat from Oil as War Risk Fades: Kemp
2024-04-29 - Hedge funds and other money managers sold the equivalent of 95 MMbbl in the six most important petroleum futures and options contracts over the seven days ending on April 23.
Exxon’s Guyana Gas Project a “Win-Win,” Set for Hook-up by Year-end ‘24
2024-04-26 - Exxon Mobil Corp. CEO Darren Woods said the company’s gas-to-power project in Guyana is a “win-win proposition particularly for the people of Guyana” when completed and hooked-up by year-end 2024.
Segrist: The LNG Pause and a Big, Dumb Question
2024-04-25 - In trying to understand the White House’s decision to pause LNG export permits and wondering if it’s just a red herring, one big, dumb question must be asked.