Thanks to new takeaway capacity, company looks at additional growth in 2018
Permian E&P Lilis Energy, Inc. (ticker: LLEX) said its third-party operated midstream system has commenced operations. The company also said that its current production is exceeding 5,000 BOEPD (75% liquids) and continues to grow as the midstream system reaches maximum efficiency. Additional wells are currently in flowback.
“Completing the implementation of our new midstream system operations and reaching our 5,000 net BOEPD target are key milestones for the company… The implementation of our new midstream solution provides full takeaway capabilities to meet our current and future natural gas transportation needs across our properties, while eliminating recent production curtailment constraints. In addition, we expect production to continue increasing in the near term once our midstream system reaches full operational efficiency and with the addition of new production from wells currently flowing back and undergoing completions,” said Executive Chairman Ron Ormand.
“The company remains focused in 2018 on delineation and de-risking of our acreage both geologically and geographically. We are currently in the process of flowing back and completing seven wells, including two Wolfcamp B wells in the eastern portion of our acreage, one Wolfcamp A and one Wolfcamp XY in our New Mexico acreage, a Wolfcamp XY well in Texas and two Wolfcamp B wells in the western portion of our Texas acreage. We expect to begin completing a well in the Bone Springs and an additional Wolfcamp B well in the western portion of Texas acreage by the end of the month. These wells will add to our production volumes and cash flow as well as provide important delineation benchmarks for the company. Based on our operational capabilities, increasing production and backlog of drilling and completion activities, we are very confident in our ability to reach our targeted 7,500 net BOEPD exit rate for 2018,” Ormand concluded.
