SAN ANTONIO, Jan. 13, 2016 (GLOBE NEWSWIRE) -- Brushy Resources, Inc. (“Brushy”) announced today the results from recent work completed on the Wolfe #3H well located in the Company’s Crittendon field in Winkler County, Texas. The Wolfe #3H well was drilled into the Brushy Canyon formation via a re-entry of an existing vertical well bore, with a 3,800 foot horizontal leg drilled in a west-east direction. The well encountered 50 feet of pay and was completed with a 9 stage Frack with 3.4MM # sand and 65,000 BBLS water. Brushy had been waiting on the install of a jet pump necessary to recover the Frack load and establish a steady production rate.
The jet pump was installed on the Wolfe #3H and initial fluid production was 1,000 barrels per day. Over the past several days the response has been in line with expectations with total fluid extraction increasing to 1,500 barrels per day and oil production increasing from 10 to 160 barrels of oil per day. Management believes that this trend should continue with production increasing until it reaches the production levels typical of other Horizontal Brushy Canyon wells drilled in the area
Brushy initiated the work on the Wolfe #3H as part of its recently announced merger with Lilis Energy (NASDAQ: LLEX ) on December 29, 2015.
The enhancement of this well confirms management’s approach to cost savings by re-entering old wellbores. The Company has a further 12 vertical well bores in its acreage position that it could re-enter and convert into horizontal producers. The cost savings on a per well basis over creating new wellbores could range from between $1.5 - $3.0 million using this approach, increasing the economic profile of the wells.
Forward Looking Statements
In addition to historical information contained herein, this news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, subject to various risks and uncertainties that could cause the company's actual results to differ materially from those in the “forward-looking” statements. While the company believes its forward looking statements are based upon reasonable assumptions, there are factors that are difficult to predict and that are influenced by economic and other conditions beyond the company's control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.
This communication does not constitute an offer to sell or a solicitation of an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
The proposed transaction between Lilis Energy, Inc. (“Lilis”) and Brushy Resources, Inc. (“Brushy”) will be submitted to Lilis's and Brushy's stockholders for their consideration. In connection with the transaction, Lilis and Brushy will file relevant materials with the U.S. Securities and Exchange Commission (the “SEC”), including a registration statement on Form S-4 that will include a joint proxy statement of Lilis and Brushy that also constitutes a prospectus of Lilis, and each will mail the definitive joint proxy statement/prospectus to its stockholders. This communication is not a substitute for the registration statement, joint proxy statement/prospectus or any other document that Lilis and/or Brushy may file with the SEC in connection with the proposed transaction.
INVESTORS AND SECURITY HOLDERS OF LILIS AND BRUSHY ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the registration statement containing the joint proxy statement/prospectus and other documents filed with the SEC by Lilis or Brushy (when available) through the web site maintained by the SEC at http://www.sec.gov . Copies of the documents filed with the SEC by Lilis will be available free of charge on Lilis's internet website at http://www.lilisenergy.com or by contacting Lilis's Investor Relations Department at (414) 351-9758.
DESCRIPTION OF BRUSHY RESOURCES
Brushy Resources, Inc. is a San-Antonio based oil and gas company with primary operations in the Permian Basin in West Texas. It is a fully-reporting issuer. Its securities do not have a trading venue.
