Lilis Energy, Inc. has reported operating results for second-quarter 2018.

Second Quarter 2018 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.

Ronald D. Ormand, Chairman and Chief Executive Officer, commented,
"We are very excited about the Company's significant accomplishments in the first half of 2018. During the second quarter, we have substantially increased production and proved reserves while delineating three new benches -the Bone Spring, Wolfcamp A, and Wolfcamp XY.  We also executed multiple agreements that addressed substantially all of our infrastructure needs, including securing a five-year firm crude oil transportation agreement with Gulf Coast pricing and a water infrastructure system and development agreement. These two agreements added $55 million of liquidity (with no dilution) to the Company and we are working on additional improvements to our financial position and capitalization. These developments will also allow us to focus on executing our development program in 2018, which will focus on longer lateral wells, and to further enhance our financial position to become cash flow positive by early 2019. We also significantly upgraded our acreage through swaps in core areas to increase our operated position to approximately 100%."