Major shareholder makes offer to acquire Permian E&P

By Lilis Energy | January 14, 2020

Lilis Energy Inc., an exploration and production company operating in the Permian Basin of West Texas and Southeastern New Mexico, has received a non-binding offer from Värde Partners Inc., on behalf of various entities affiliated with Värde Partners, proposing to acquire all of the outstanding shares of common stock of the company not owned by Värde in a cash merger transaction for $0.25 per common share.

Lilis Energy, Inc. is a Fort Worth based independent oil and gas exploration and production company that operates in the Permian’s Delaware Basin, considered among the leading resource plays in North America. Lilis’ current total net acreage in the Permian Basin is approximately 20,000 acres. Lilis Energy's near-term E&P focus is to grow current reserves and production and pursue strategic acquisitions in its core areas.

The Värde offer is subject to obtaining customary financing, the recommendation of the company’s special committee, approval by the company’s board of directors and Värde's investment committee and entering into a definitive merger agreement with the company. Any proposed merger transaction would also be subject to requisite approval by the company’s shareholders. The offer letter indicated the Värde offer would expire on February 17, 2020 and may be withdrawn at any time.

The special committee of the board of directors of the company, which was formed last November, will evaluate the recent Värde offer as it continues its process of evaluating the potential for other strategic alternatives with the assistance of its financial advisor, Barclays Capital Inc.

Värde holds approximately 23.6 million of the 91.7 million outstanding shares of the company’s common stock and all of the outstanding preferred stock of the company, including all of its Series E convertible participating preferred stock. The Series E participating preferred stock currently votes as a single class with the common stock on an as-converted basis as approximately 25.7 million converted shares.

Lilis Energy, Inc. is a Fort Worth based independent oil and gas exploration and production company that operates in the Permian’s Delaware Basin, considered among the leading resource plays in North America. Lilis’ current total net acreage in the Permian Basin is approximately 20,000 acres. Lilis Energy's near-term E&P focus is to grow current reserves and production and pursue strategic acquisitions in its core areas.