[Context: On August 14, Varde Partners-backed Lilis Energy and EnCap Flatrock-backed Lucid Energy Group announced a midstream gathering, processing and purchasing agreement in the Permian. Further details and related links are below.]
Lilis Energy And Lucid Energy Group Enter Into A Long-Term Gas Gathering, Processing And Purchase Agreement In The Permian Basin
SAN ANTONIO, Aug. 14, 2017 /PRNewswire/ — Lilis Energy, Inc. (NYSE American: LLEX) (“Lilis”or “the Company”), an exploration and development company operating in the Permian Basin of West Texas, today announced it has entered into a long-term gas gathering, processing and purchase agreement with an affiliate of Lucid Energy Group (“Lucid”) (www.lucid-energy.com) to support Lilis’s active drilling program in the Permian’s Delaware Basin. Lucid will receive, gather and process Lilis’s gas production from certain production areas located in Lea County, New Mexico and in Loving and Winkler counties, Texas. The agreement secures sufficient term and capacity for Lilis during its development and exploitation life cycle of the production areas committed to the new agreement.
“We are pleased to enter into this important, long-term agreement with Lucid in the Permian Basin where our wells are consistently delivering strong operational results. The new agreement positions Lilis with sufficient gathering and processing capacity as we execute our long-term development plans,” said Lilis Chief Executive Officer Jim Linville. “Lucid will be a great partner. They have an outstanding reputation for developing solutions unique to individual company needs and for relationship-focused customer service. We look forward to a successful, long-term partnership.”
Lilis Chief Financial Officer Joe Daches added, “Our continued growth and well performance in the Delaware Basin is the primary reason we were able to gain very favorable gathering rates. This agreement will result in improved gathering rates and improved differentials for the Company.”
Republic Development Partners, LLC, based in Houston, Texas consulted the Company.
About Lilis Energy, Inc.
Lilis Energy, Inc. is a San Antonio-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’s total net acreage in the Permian Basin is approximately 10,500 acres. Lilis Energy’s near-term E&P focus is to grow current reserves and production and pursue strategic acquisitions in its core areas.
About Republic Development Partners
Republic Development Partners, LLC (“Republic”) is a Houston-based midstream company that identifies and executes midstream infrastructure opportunities predominantly in conjunction with crude oil, natural gas, natural gas liquids and water projects. Republic’s wholly owned subsidiary, RDP Producer Services, LLC provides midstream services in cooperation with exploration and production companies.