Current Report Filing (8-k)
03 June 2016 - 8:05PM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): June 3, 2016
LILIS
ENERGY, INC.
(Exact
name of registrant as specified in its charter)
Nevada
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001-35330
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74-3231613
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(State
or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification Number)
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216
16th Street, Suite #1350
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Denver,
CO
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80202
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(303)
951-7920
(Registrant’s
telephone number, including area code)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
☐
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 8.01 Other Events.
During the year ended December 31, 2015,
Lilis Energy, Inc. (the “Company”) entered into eight joint operating agreements to participate as a non-operator in
the drilling of eight horizontal wells in the Wattenberg Field. The Company’s average working interest in each well is 3.41%.
The Company did not pay its respective portion of the drilling and completion costs pursuant to these agreements and the Company
was placed in non-consent status.
However, in May 2016, the Company came
to a new agreement with the Operator and restored its right to participate in these wells. The drilling and completion costs for
the eight wells is approximately $1.54 million. The Company paid $300,000 towards these costs and will also receive a credit in
the amount of approximately $254,000 for the net revenue less operating expenses collected by the Operator on the Company’s
behalf from inception through February 2016 production. The Company must pay the balance, less any applicable offsetting revenue
upon the closing of the pending merger with Brushy Resources, Inc., or no later than June 30, 2016, subject to mutual extension.
The Company expects to raise additional funds to pay for the remaining outstanding balance. If full payment is remitted, the Company
will regain compliance under each of the joint operating agreements and all of the Company’s rights will be reinstated. If
the Company fails to make the payments when due, it will forfeit its rights with respect to the wells.
The eight wells have produced approximately
15,650 BOE (barrels of oil equivalent) from inception through February 2016 production. February production, net to the Company’s
interest, averaged 186 BOEPD (barrels of oil equivalent per day). The Company approximates June production from these wells, net
to the Company’s interest, to be 120 BOE per day.
Forward-Looking Statements
Statements
in this Current Report on Form 8-K relating to the Company’s expectations and beliefs are forward-looking, within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company’s current beliefs and
expectations and are subject to significant risks and uncertainties. The forward-looking statements provide current expectations
of future events and determinations and are not guarantees of future events and determinations, nor should they be relied upon
as representing the Company’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties
and actual future events and determinations may differ materially from those presented, either expressed or implied, in this Form
8-K. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking
statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which has been
filed with the Securities and Exchange Commission and is available on the Company’s website (www.lilisenergy.com) and on
the Securities and Exchange Commission’s website (www.sec.gov). The Company does not undertake to update the forward-looking
statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date: June
3, 2016
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LILIS
ENERGY, INC.
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By:
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/s/
Kevin Nanke
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Executive
Vice President and Chief Financial Officer
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3
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