SAN ANTONIO, March 15, 2017 /PRNewswire/ -- Lilis
Energy, Inc. (NASDAQ: LLEX) ("Lilis" or "Company") announces the
following highlights:
- The Company's first two operated horizontal wells,
the Bison #1H and the Grizzly #1H, are producing industry leading
flow rates with each over 340 boepd per 1,000' lateral
feet
- The Company's current Delaware Basin leasehold exceeds 7,000 net
acres, an increase of over 100% since initially entering the
Delaware Basin
- Sets preliminary 2017 drilling and completion budget of
approximately $45 million to drill 10
gross 8 net wells
- Bison and Grizzly well results exceed type curve
estimates
- Recently uplisted and began trading on the NASDAQ on
March 14, 2017
Industry Leading Well Results and Operational
Highlights:
Lilis recently drilled and completed its first two operated
horizontal Wolfcamp B wells with IP rates significantly exceeding
the expected type curve. The Company recently spudded a third
operated horizontal well. The highlights of Lilis's recent
well results are as follows:
Currently on Production:
- The Bison #1H was turned to sales on January 19, 2017 and had a recent 24-hr rate of
2,128 Boepd (2,375 Boepd on a three-stream basis) (75% liquids) or
344 Boepd per 1,000' lateral feet. The well has been online for 55
days and is currently producing on a restricted choke with more
than 1,800 lbs of flowing tubing pressure. The Bison's 6,897-foot
lateral was completed with 35 stages (200-foot plug to plug
spacing) with approximately 2,200 lbs of sand per foot. The Bison
#1H is currently performing above the 923 Mboe corporate type curve
for a mile and a half lateral and has not yet reached a peak 30-day
initial production rate.
- The Grizzly #1H well was turned to
sales on February 9, 2017 and had a
recent 24-hr rate of 1,392 Boepd (1,666 Boepd on a three-stream
basis) Boepd (65% liquids) or 406 Boepd per 1,000' lateral feet.
The well has been online for 34 days and is currently producing on
a restricted choke with more than 1,850 lbs of flowing tubing
pressure. The Grizzly's 4,103-foot lateral was completed with 20
stages (200-foot plug to plug spacing) with approximately 2,200 lbs
of sand per foot. The Grizzly #1H is currently performing above the
738 Mboe corporate type curve for a one mile lateral and has not
yet reached a peak 30-day initial production rate.
Currently Drilling:
- The Hippo #1H well is currently at a total depth
of 16,580 feet measured depth ("MD") and is scheduled for hydraulic
fracturing next week. The well is anticipated to have a 4,000-foot
treatable lateral completed with 20 stages (200-foot plug to plug
spacing) with 2,200 lbs of sand per foot.
Planned Drilling:
- The Lion #1H well is scheduling to begin drilling
March 21, 2017. The well is
anticipated to have a 4,000-foot treatable lateral completed with
20 stages.
Lease Acquisition Update
Lilis continues to aggressively seek opportunities to enhance
its position in the Delaware
Basin, and has increased its leasehold position from the initial
acquisition footprint of approximately 3,500 net acres to over
7,000 net acres, an increase of over 100%. Lilis expects to
continue to build on its position throughout the Delaware Basin to effectively meet its
development goals.
2017 Full Year Preliminary Drilling & Completion Capital
Budget ("CAPEX")
The Company also announced today a preliminary 2017 drilling and
completion capital budget of approximately $45 million to drill 10 gross (8 net) wells,
primarily targeting the Wolfcamp B. Based on recent offset operator
activity that continues to derisk and delineate multiple benches
prospective across its acreage position Lilis may elect to drill
additional zones in the second half of 2017. The Company plans to
continue upgrading its existing infrastructure which could include
the drilling of additional water wells and salt water disposal
wells in support of the Company's ongoing expansion and development
of its horizontal drilling program.
Funding for the drilling and completion budget through
December 2017 is expected to come
from cash on hand, cash flow from operations and availability under
the Company's $50 million term
facility.
The 2017 capital program is subject to changes based upon market
conditions, commodity prices, rig availability, drilling results,
possible acquisition opportunities and general operational results.
The Company continues to look for acquisition opportunities but has
not included a provision for those opportunities in its preliminary
capital budget.
Lilis' Chief Executive Officer, Mr. Avi
Mirman, remarked, "It has been an active last nine months
for Lilis, including completing the acquisition of Brushy Resources
in a tumultuous commodity environment back in June 2016; closing on two above-market equity
financings and a term loan facility; hiring a high-performing and
motivated team across key departments; over 100% increase in our
contiguous net acreage position; listing on the NASDAQ; and now
production results that exceed our expectations. To drill two
successful Wolfcamp B wells on our first operated efforts is a real
testament to the technical talents possessed by our operational
team, led by our Chief Operating Officer, Brennan Short, and Senior Geologist,
Mary Hughes. The initial results
from both the Bison #1H and the Grizzly #1H demonstrate performance
well ahead of our internal type curves. We expect 30-day peak rates
will be achieved over the next several weeks. Onward"
About Lilis Energy, Inc.
Lilis Energy, Inc. is a San
Antonio-based independent oil and gas exploration and
production company that operates in the Permian's Delaware Basin and in the Denver-Julesburg (DJ) Basin, considered amongst the
leading resource plays in North
America. Lilis Energy's primary business objective is to
increase its Delaware Basin
leasehold position, reserves, production and cash flows at
attractive rates of return on invested capital in order to enhance
shareholder value. For more information, please contact CORE IR:
(516) 222-2560 or visit www.lilisenergy.com.
Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of the federal securities laws. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company. These risks
include, but are not limited to our ability to replicate the
results described in this release for future wells; the ability to
finance our continued exploration, drilling operations and working
capital needs, all the other uncertainties, costs and risks
involved in exploration and development activities; and the other
risks identified in the Company's Annual Report on Form 10-K and
its other filings with the Securities and Exchange Commission (the
"SEC"). Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or
developments may differ materially from those projected in the
forward-looking statements. The forward-looking statements in this
press release are made as of the date hereof, and the Company does
not undertake any obligation to update the forward-looking
statements as a result of new information, future events or
otherwise.
The SEC permits oil and gas companies, in their filings with the
SEC, to disclose only proved, probable and possible reserves that
meet the SEC's definitions for such terms, and price and cost
sensitivities for such reserves, and prohibits disclosure of
resources that do not constitute such reserves. This press release
contains certain terms, such as recoverable resource, risk and
unrisked locations and other similar terms. These estimates are by
their nature more speculative than estimates of proved, probable
and possible reserves and accordingly are subject to substantially
greater risk of being actually realized. Investors are urged to
consider closely the disclosure in our Annual Report on Form 10-K
and other SEC filings.
Readers are cautioned that initial production rates are subject
to decline over time and should not be regarded as reflective of
sustained production levels. In particular, production from
horizontal drilling in shale oil and natural gas resource plays and
tight natural gas plays that are stimulated with extensive pressure
fracturing are typically characterized by significant early
declines in production rates.
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SOURCE Lilis Energy, Inc.