HOUSTON, Dec. 13, 2018 (GLOBE NEWSWIRE) -- Lilis Energy, Inc. (NYSE American: LLEX), an exploration and development company operating in the Permian Basin of West Texas and Southeastern New Mexico, announced today that the Tiger #3H has reached the 24-hour initial production rate. The Company has also obtained a Borrowing Base increase to $108MM effective December 7, 2018 as a result of its regularly scheduled fall redetermination process.
Tiger #3H – 3rd Bone Spring Highlights:
- IP 24 rate of 1,821 Boepd, including 801 Bopd (63% liquids, 44% oil), on a three-stream basis, equivalent to 239 Boepd per 1,000 ft. The Tiger #3H was completed as a 7,634 ft. lateral with 38 stages using 200 ft. plug-to-plug spacing and approximately 1,847 lbs. of sand per ft.
- Lilis’ second 3rd Bone Spring well highlights another economic zone within Lilis’ core acreage and represents the latest encouraging data point in the Company’s continued strategic delineation program.
- Decreased D&C cost for Bone Spring wells relative to Wolfcamp wells - The Bone Spring is a shallower target and requires one less string of pipe casing, with approximately $1.5-2.0MM in lower AFE costs per well compared to the Wolfcamp and provides attractive IRRs per well.
- The Bone Spring benches have shown continuity and make up approximately 28% of Lilis’ 1,175 existing drilling inventory locations.
Other:
- The Company reaffirms its 2018 year-end exit rate production guidance of 8,000 net Boepd.
- Upcoming results from wells currently in the completion stage will be provided in an operations update in early 2019.
- The Company's executive officers and directors have been net buyers of the Company's stock and hold over 25% of the Company’s outstanding shares.
- The Company’s 2019 budget and guidance are expected to be provided in the first quarter of 2019 - The Company intends to manage its cash flow in order to minimize capital outspend and focus substantially all of its capital on drilling and completing wells in 2019. The Company’s goal remains to be free cash flow positive by the second half of 2019. The recent borrowing base increase enhances Lilis’ existing liquidity and provides additional capital to fund the Company’s 2019 program.
Ronald D. Ormand, Chairman and Chief Executive Officer, commented, “We are pleased to present initial results from the Tiger #3H well, providing another important data point and productive bench in the Northern Delaware Basin. The development of the 3rd Bone Spring bench is especially encouraging due to the lower well costs and the attractive returns it offers.”
About Lilis Energy, Inc.
Lilis Energy, Inc. is a Houston-based independent oil and gas exploration and production company that operates in the Permian’s Delaware Basin, considered amongst the leading resource plays in North America. Lilis’ current total net acreage in the Permian Basin is over 20,000 acres. Lilis Energy's near-term E&P focus is to grow current reserves and production and pursue strategic acquisitions in its core areas. For more information, please 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. 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.
Forward-looking statements regarding expected production levels are based upon our estimates of the successful completion of drilled wells on schedule. Actual sales production rates from our wells can vary considerably from tested initial production (IP) rates and are subject to natural decline rates over the life of the well.
Contact:
Wobbe Ploegsma
V.P. Capital Markets & Investor Relations
210-999-5400, ext. 31