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Delaware Permian E&P Files Bankruptcy, Will Liquidate

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   |    Monday,June 29,2020

Lilis Energy Inc. has filed for bankruptcy.

This comes after several developments including David Wood resigning as Chairman in March 2020 as well as several extensions on borrowing base payments.

The plan is expected to reduce Lilis' debt obligations by more than $34.9 million, and right-size the Company’s bank indebtedness for future operations.  Varde who owns 28% of the RBL, 100% of preferred stock and , 25% of the common stock has the option (not obligation) through the RSA to provide DIP and equity injection.

The Plan is contingent upon the Värde Funds’ election to provide an agreed equity commitment and debtor-in-possession (DIP) financing on or before August 17, 2020. In the interim, the Company has received a commitment from its bank lenders under its Credit Agreement to provide up to $15.0 million in DIP financing.

If the DIP financing is not secured, Lilis will pursue an agreed sales process with respect to its assets.

Lilis' Asset Portfolio

Lilis Production / Well & Rig Activity

Net production was 5,102 Boe/d as of Q4 2019. The company did not release a Q1 2020 report.

Joseph Daches, CEO, said: “Like many companies in the oil and gas industry, we have been impacted by the severe downturn in commodity prices throughout the COVID-19 pandemic. While facing this challenging environment, we have worked diligently to explore a variety of alternatives to cut costs, improve our liquidity and address debt maturities. We are pleased to receive the continued support of our lenders and preferred shareholders and are confident that Lilis Energy can emerge from Chapter 11 better positioned to meet the challenges that have faced us.”

Vinson & Elkins L.L.P. is serving as legal advisor to the Company, Barclays Capital is serving as investment banker for the Company, and Opportune LLP is serving as restructuring advisor to the Company.

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