• Hippo #2H is the highest recorded IP per 1,000 ft. Wolfcamp B Lilis has drilled to date and the highest recorded among offset producers in the basin.

The Hippo #2H reached an IP 24 rate of 2,149 Boepd (77% liquids), on a three-stream basis, equivalent to 478 Boepd per 1,000 ft. The Hippo #2H was completed as a 4,497 ft. lateral with 21 stages using 220 ft. plug-to-plug spacing and approximately 1,837 lbs. of sand per ft.

• AG Hill #1H is the furthest east Wolfcamp B drilled on the Lilis property, as we are continuing to demonstrate the viability of our eastern acreage.

The AG Hill #1H reached an IP 24 rate of 1,000 Boepd (87% liquids), on a three-stream basis, equivalent to 223 Boepd / 194 Bopd per 1,000 ft., a higher Bopd rate than the basin average, which is consistent in IP rates and high liquids achieved in the Wildhog and Prizehog wells in New Mexico which are geologically on strike with the AG Hill#1H. The AG Hill #1H was completed as a 4,487 ft. lateral with 21 stages using 220 ft. plug-to-plug spacing and approximately 1,767 lbs. of sand per ft.

• Meerkat #1H is the first successful Wolfcamp XY drilled by Lilis, validating additional productive zones across the property.

The Meerkat #1H reached an IP 24 rate of 1,823 Boepd (56% liquids), on a three-stream basis, equivalent to 393 Boepd per 1,000 ft. The Meerkat #1H was completed as a 4,637 ft. lateral with 23 stages using 200 ft. plug-to-plug spacing and approximately 1,495 lbs. of sand per ft.

Lilis’ 2018 drilling program is focused on the delineation of the Company’s acreage. Lilis will continue to further de-risk our eastern acreage and multiple benches with well results from the 3^rd Bone Spring, Wolfcamp A and Wolfcamp XY in the near future. The Company is also finalizing log interpretations in conjunction with third party providers from our pilot well test in the Howell #1H. These logs will provide updated data on our eastern acreage and are expected in the next 30 days.

Drilling:

• AG Hill #2H: 3^rd Bone Spring – Eastern well
• Axis #1H: Wolfcamp B – 1 ½ mile lateral

Completing:

• Antelope #1H: 3^rd Bone Spring
• Moose #1H: Wolfcamp A – 1 ½ mile lateral
• Prizehog #2H: Wolfcamp A – New Mexico

Flowback:

• Wildhog #2H: Wolfcamp XY – New Mexico
• Howell #1H: Wolfcamp XY – Eastern well