Page 12 - NorthAmOil Week 15

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
Ring Energy enters
into purchase and sale
agreement on Its Delaware
Basin acreage
Ring Energy announced today that it has entered into a purchase and sale agreement to sell its Delaware Basin asset located in Culberson and Reeves Counties, Texas.
The property consists of approximately 20,000 net acres. The current net
daily production from the property is approximately 575 bpd (barrels of oil per day) and 2,000 mcf per day (thousand cubic feet of natural gas per day), equalling approximately 908 boepd (barrels of oil equivalent per
day). Year-end 2019 PDP (proved developed producing) reserve estimates, as determined by outside independent engineering firm Cawley, Gillespie and Associates, are an estimated 3.48mn barrels of oil and 10,055 mmcf (million cubic feet) of natural gas, equalling approximately 5,156mn boe with a PV-10 value of approximately $43mn. The report was completed using average pricing of $52.41 per barrel of oil and $1.47 per mcf of gas.
The sales price is $31.5mn. The company has received a $500,000 non-refundable deposit and expects to close the transaction in approximately 60 days.
Mr. Kelly Hoffman, CEO of Ring stated: “Since formally announcing the marketing
of our Delaware property in early November 2019, we have worked very hard to bring about a fair and equitable transaction. As we have stated in the past, the proceeds from this transaction will be used to reduce the current balance on the Company’s senior credit facility. The current environment mandates
a cautious, conservative approach going forward, and strengthening our balance sheet is a step in the right direction.”
RING ENERGY, April 14, 2020
Lilis Energy announces
actions in response to
current market conditions
and director resignations
Lilis Energy, an exploration and production company operating in the Permian Basin of West Texas and southeastern New Mexico, announced today that the company is taking measures to reduce costs given current market conditions.
In response to unprecedented challenges faced across the industry, the company has reduced G&A expense by approximately 50%, G&A headcount by approximately 44% and operating costs by approximately 50%. The company has implemented salary reductions, a reduction in board size and compensation, furloughs and layoffs to achieve these reductions. Additionally, the company has elected to shut-in 12 of its 39 producing wells as each of these shut-in wells are deemed uneconomic in the current environment. The
company has no immediate plans to drill or complete any new wells while these conditions persist, and capital expenditures will be limited to minor projects that will reflect a meaningful and permanent reduction in lease operating expenses. Most of the company’s lands are currently held by production,
which also minimizes the need to drill and complete additional wells in the near-term. The company has also worked closely with its essential vendors to reduce costs associated with goods and services.
Joseph Daches, chief executive officer
and president, commented: “We have made some very difficult decisions recently to release several of our employees in both
our corporate office and field operations. However, these decisions, along with other recent cost-savings measures, have shown that we can adjust quickly to this rapidly changing market. We now feel better positioned to move forward during these uncertain times, and we will continue to evaluate additional cost-cutting initiatives across the Company while also maintaining the health, safety and well-being of our employees.”
In addition, Mark Christensen, R.
Glenn Dawson, and Ronald D. Ormand
have resigned as members of the board of directors of the company. None of their resignations were the result of a disagreement with the company, its directors or any of its stockholders. Effective with their resignations, the board was reduced from eight to five members.
LILIS ENERGY, April 15, 2020
Noble Energy takes
proactive steps focused on
liquidity and balance sheet
strength
Noble Energy today provided an update
on actions it is taking in response to the COVID-19 pandemic and significant decline in oil and gas demand and prices.
“Recent events have had an unprecedented and unpredictable impact on the global economy and the oil and gas industry,” said David L. Stover, Noble Energy’s Chairman and CEO. “We are acting quickly and aggressively to confront today’s economic challenges with a focus on Noble Energy’s financial strength and to position the Company to improve shareholder value. Noble Energy benefits from a high-quality, low-decline portfolio, strong capital discipline, and an ability to flex spending as appropriate. The actions taken
to date are expected to generate more than
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Week 15 16•April•2020