Lilis Energy (ticker: LLEX) is a pure play Permian operator with over 16,200 net acres in the Delaware Basin, and over 900 net identified future drilling locations. Lilis Energy is headquartered in San Antonio, Texas.
In the first quarter of 2018 Lilis Energy plans to complete one well and commence drilling another well on its eastern acreage. The targeted formations include but are not limited to: Wolfcamp A, Wolfcamp XY, and the 2nd Bone Springs.
Highlights from Q3 2017
- Completed first round of recently announced acquisitions totaling ~4,100 net acres, bringing total net acreage to ~15,400, an increase of over 50% from the second quarter of 2017
- The Wildhog #1H recorded an IP30 day rate of 839 BOE/D (83% Liquids)
- The Prizehog BWZ State Com #1H and Tiger #1H are on flow back producing hydrocarbons
- Lucid Energy Delaware, LLC. long-term gas gathering, processing, and purchase agreement is expected to tie in New Mexico production November 15, 2017 with Texas commencing in early December 2017, resolving transitory production curtailment issues completely in 2018
- Production guidance of 5,000 – 5,300 BOE/D expected January 2018
- Liquidity enhancements announced – funding of the Company through 2018
Lilis Energy continued its active leasing program in the third quarter by expanding its footprint through bolt-on acquisitions and organic leasing programs. The most significant acquisition, announced on October 10, 2017, includes roughly 4,000 net acres and about 92% of this acreage overlaps our current gross acreage position. Lilis Energy completed its initial purchase of 3,200 acres in this acquisition on November 9, 2017. Based on Lilis Energy’s current pipeline, management expects to add an additional 1,000 – 1,500 net acre in the near future.
Production Update
For the third quarter of 2017, Lilis Energy’s average daily-realized sales were 1,675 net BOEPD. Based on wellhead producing potential, they have estimated the producing potential from the field is ~2,750 net BOEPD. This production data reflects downtime experienced while tying new producing wells in South east New Mexico with their midstream gatherer. The transitory issue is expected to be completely resolved once the Lucid system is fully operational. Upon full installation, the Lucid system will provide a permanent solution to Lilis’s transitory curtailment issues.
Source: Lilis Energy
EnerCom Dallas conference presenter
Lilis Energy will be presenting at the EnerCom Dallas investment conference, Feb. 21-22 at the Tower Club in downtown Dallas. Institutional investors, portfolio managers, financial analysts, CIOs and other investment community professionals who invest in the energy space should register now.
