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.
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