Permian Basin-based exploration and development company Lilis Energy Inc. has entered into a trade of approximately 1,500 net acres in Winkler and Loving counties in Texas.
The deal hikes the company's total working interest in its Delaware Basin asset up to 35% and further solidifies its acreage in the Permian Basin, according to a June 11 news release.
"[T]he production and working interests added from this transaction and additional wells in completion moves us closer to our year-end target of 7,500 net [barrels of oil equivalent per day], which we expect to exceed well before year end. We will continue to actively seek to core up acreage and strategically increase our average working interest in the basin," Lilis chairman and CEO Ronald Ormand said in the news release.
The traded acreage was in non-operated sections with lower working interests. The transaction is expected to close in the next 45 days.
The swap deal will give Lilis a significant increase in proved developed and non-developed reserves, along with a net gain of approximately 500 boe/d to 1,000 boe/d of current and future production.
The company's operatorship in five key drilling units will increase up to 90%. In addition, the deal will add approximately 100 net operated locations targeting the Wolfcamp A, B and XY, Bone Springs and additional benches.