Lilis Energy Announces Delaware Basin Acquisition and Wildhog BWX State Com #1H IP24 Rate

Lilis Energy Announces Delaware Basin Acquisition and Wildhog BWX State Com #1H IP24 Rate

Over 4,000 Net Contiguous & Overlapping Acres in Winkler County
YE 2017 Guidance of 15,000 Net Acres Exceeded
Wildhog BWX State Com #1H Reached 997 Boepd,
86% Liquids on 4,567 Foot Lateral
Provides Significant Deliniation Data Point for Eastern Acreage
Existing Liquidity & Cash Flow Sufficient to Fund Acquisition and Development Program through 2018

SAN ANTONIO, Oct. 4, 2017 /PRNewswire/ — Lilis Energy, Inc. (NYSE American: LLEX), an exploration and development company operating in the Permian Basin of West Texas, today announced that it has entered into an agreement to acquire over 4,000 net contiguous/overlapping acres from a private seller for approximately $45.6MM in cash, subject to customary closing adjustments.  The acquisition will increase the Company’s acreage position in the Delaware Basin to over 15,000 net acres, exceeding the Company’s year end 2017 acreage guidance.  The transaction is currently expected to close in November 2017 and the Company has posted an acquisition overview presentation and updated corporate presentation to its website.

Acquisition Highlights:

  • Adds over 4,000 net contiguous/overlapping acres located in the core of the Delaware Basin
  • Surpasses 15,000 acreage goal for year end 2017
  • Highly contiguous/overlapping acreage position that is conducive for long-lateral development
  • Multiple stacked pay zones
  • Adds over 150 net potential locations to inventory

Combined Permian Acreage Highlights:

  • Approximately 15,250 net Delaware Basin acres
  • Approximately 2,952 Boepd of net current production on a three stream basis, 71% liquids – as of September 23, 2017
  • Over 900 net potential locations
  • One operated rig drilling with plans to add a second rig in October 2017

Wildhog Highlights:

  • Provides substantial delineation data point to de-risking the eastern portion of acreage
  • IP24 hour rate per 1,000′ lateral foot exceeds the average surrounding offset Delaware Basin activity, both on a Boepd and Bopd basis
  • Currently producing at 72% oil and 86% liquids on a three-stream basis and has been online for 47 days
  • Reached a 24-hour initial production rate of 997 Boepd on a three-stream basis, which equates to 219 Boepd per 1,000 ft, and a rate of 188 Bopd per 1,000 ft respectively
  • 4,567-foot treated lateral was completed using 23 stages of 200-foot plug to plug spacing and 1,837 lbs. of sand per foot, consistent with other completion designs the Company uses
  • Fifth successful operated horizontal Wolfcamp B well in the Permian’s Delaware Basin

 “We are extremely pleased with this acreage acquisition transaction.  This acquisition is not only contiguous and overlapping to our existing core properties but also increases our overall working interest and operatorship.   The results from the Wildhog provide further evidence of the significant productivity and potential of our eastern acreage,” said Ron Ormand, Executive Chairman of Lilis Energy.

SOURCE:  http://investors.lilisenergy.com/phoenix.zhtml?c=225413&p=irol-newsArticle&ID=2304535

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