Lilis Energy presents at EnerCom’s The Oil & Gas Conference®
Lilis Energy Inc. (ticker: LLEX) is a Houston-based independent oil and gas exploration and production company that operates in the Permian’s Delaware Basin. Lilis Energy’s primary business objective is to increase its Delaware Basin leasehold position, reserves, production and cash flows at high rates of return on invested capital.
Q2 highlights
- Production increased by 53% quarter-over-quarter and 210% year-over-year and current production exceeding 7,300 Boepd, excluding pending acreage swaps.
- Secured infrastructure solutions including a flow assurance agreement that provides firm crude transportation with Gulf Coast pricing, new water gathering and disposal agreements, and natural gas and crude oil gathering agreements.
- Increased liquidity by $55 million, without dilution, through executing crude gathering and water gathering and disposal contracts. Additional liquidity and Balance Sheet enhancements are underway.
- Began delineation of the Company’s position in the Delaware Basin and delivered strong results from the Company’s Wolfcamp A, B and XY and 3rd Bone Spring wells.
- The drilling program in the second half of 2018 targets almost exclusively 1.5-mile laterals.
- The Company increased its 2018 target exit rate to 8,000 Boepd as result of increasing production from successful development program and longer lateral development.
- Executed acreage swaps in the Delaware Basin in Texas and New Mexico, increasing the Company’s Working Interest and Net Revenue Interest, as well as PDP and PUD reserves. Working Interest increased to 94% across acreage involved in the swaps, including increasing working interest in New Mexico acreage to 100%.
- Acreage swaps are expected to add incremental Boepd of 500-600 during the second half of 2018.
- Owned and committed acreage exceeds 22,000 acres.
Breakout session at the EnerCom conference
During Lilis Energy breakout session at the 2018 EnerCom conference, management was asked the following questions:
- Can you talk about mid-stream Salt Creek oil gathering system? Does Salt Creek address just gathering or long-haul solutions? What are the terms of your agreement?
- If you increase your output will it be the same terms?
- Can you elaborate more on that transaction like who the purchaser is, what the cost you are paying for long-haul?
- You mentioned Salt Creek incremental barrels. Epic has plenty of incremental capacity still on. If you take more barrels you take it on Salt Creek or Epic. Any reason why you’ll do it on Salt Creek versus Epic?
- If last year was acreage and this year is delineation. Is it fair to think that 2019 is fully core development and when do you think you’ll start formulating plans and targets as you think about 2019 as you are moving into that?
You can listen to Lilis Energy’s presentation here.
