Lilis Energy to dedicate private placement proceeds to Wattenberg drilling

Lilis Energy Inc.

Denver-based Lilis Energy Inc. (Nasdaq:LLEX), an independent oil and gas exploration and production company focused on development in the Wattenberg filed and surrounding Denver-Julesburg (DJ) Basin, has closed on a $7.5 million financing in the form of a private placement of restricted units, with each unit consisting of one share of its common stock and one common stock purchase warrant.

The company sold 3,750,000 units at a price of $2.00 per unit. Each warrant has an exercise price of $2.50 per share and is exercisable beginning six months from the issuance date, for a period of three years. The units have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

Subject to shareholder approval, $1.425 million of the Offering will include members of the company's officers and board of directors. The company intends to use the proceeds from this financing to fund its Wattenberg drilling program, and for working capital and general corporate purposes.

"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," said Avi Mirman, the company’s president, in a statement.

Mirman added: "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."

T.R. Winston & Company LLC acted as the exclusive placement agent for the offering.

Lilis Energy Inc., formerly Recovery Energy Inc., changed its corporate name to Lilis Energy Inc. in December 2013 after refocusing E&P efforts to unconventional development of its primary de-risked Wattenberg prospects in the DJ Basin, noted Mirman in November.

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