8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 5, 2019

LILIS ENERGY, INC.

(Exact name of registrant as specified in its charter)

Nevada	001-35330	74-3231613
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

1800 Bering Drive, Suite #510
Houston, TX	77057
(Address of Principal Executive Offices)	(Zip Code)

(817) 585-9001

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Item 2.02    Results of Operations and Financial Condition.

As described under Item 7.01 below, on March 5, 2019, Lilis Energy, Inc. (the “Company”) posted to its website a presentation related to the recapitalization referred to in Item 7.01 below. Among other matters, the presentation provides a summary of the Company’s cash and capitalization as of December 31, 2018, on an actual basis and on a pro forma basis giving effect to the recapitalization. A copy of the presentation is furnished as Exhibit 99.2 hereto.

Item 7.01    Regulation FD Disclosure.

On March 5, 2019, the Company issued a press release announcing that it entered into definitive agreements for a recapitalization involving (i) the exchange of the Company’s second lien term loan for a combination of preferred and common stock and (ii) an increase in the borrowing base under the Company’s revolving credit facility. The press release also announced that the Company’s management will host a conference call on Friday, March 8, 2019, at

11:00 AM Eastern Time, to review financial results and provide an update on the Company’s corporate developments.

Also, on March 5, 2019, the Company posted to its website a presentation related to the recapitalization.

Copies of the press release and the presentation are furnished as Exhibits 99.1 and 99.2 hereto.

The information furnished under Item 2.02 and Item 7.01, including the accompanying Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall such information be deemed to be incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as specifically stated in such filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release dated March 5, 2019.
99.2	Recapitalization Summary Presentation dated March 5, 2019.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 5, 2019	LILIS ENERGY, INC.
	By:	/s/ Joseph C. Daches
		President, Chief Financial Officer and Treasurer

 _____________________________________________________________________________________________

EX-99.1

LLEX:NYSE American LILIS ENERGY ANNOUNCES SIGNIFICANT BALANCE SHEET RECAPITALIZATION SIGNIFICANTLY REDUCES LEVERAGE AND IMPROVES LIQUIDITY POSITION INCREASES BORROWING BASE TO $125MM REDUCES FULLY DILUTED SHARE COUNT BY APPROXIMATELY 12MM Management to Review Financial Results, Provide an Operations Update and 2019 Outlook and Guidance on Conference Call Webcast at 11:00 a.m. ET on Friday, March 8, 2019 HOUSTON, TEXAS – March xx, 2019 – Lilis Energy, Inc. (NYSE American: LLEX), an exploration and development company operating in the Permian Basin of West Texas and Southeastern New Mexico, announced that the Company has entered into definitive agreements for a transformational recapitalization of its balance sheet. In the transaction, which is expected to close later today, the Company will exchange its outstanding Second Lien Term Loan for a combination of preferred and common stock. Concurrent with the exchange and the regularly scheduled spring redetermination, Lilis increased the borrowing base under its revolving credit facility to $125MM. The Company has provided a presentation detailing the transaction on its website. Ronald D. Ormand, Chairman and Chief Executive Officer, commented, “This transformative transaction, extinguishing the remainder of our Second Lien Term Loan, significantly reduces our leverage profile, simplifies our capital structure, and, in conjunction with our borrowing base increase, improves the liquidity of the Company. The transaction also removes all conversion features associated with the Second Lien, the Series C and Series D preferred stock and reduces the fully diluted share count by approximately 12MM shares. This transaction importantly removes any concerns over leverage and near-term debt maturities and allows both investors and the Company to focus on the continued, efficient development of our high-quality assets. The Company will have greater operational and financial flexibility to allow us to manage our return on capital and better match our capex program with cash flows and commodity prices. As a result, we will continue to move towards cash flow neutrality in the second half of 2019.” Transaction Highlights: Significantly Reduces Leverage and Common Stock Dilution • The exchange of Second Lien Term Loan for preferred and common stock dramatically reduces leverage • Leverage reduced to ~2x – proforma 2019 • Decreases fully diluted share count by approximately 12MM shares

Substantially Improves Liquidity and Cash Flow • Increases borrowing base by approximately 16% to $125MM with room for future growth • All preferred securities have PIK options, eliminating any near-term cash service • Cash-flow neutral development program for 2019 should enhance liquidity and maintain lower leverage ratios Eliminates 2021 Maturity and Impact of Future Conversions • Transaction eliminates the 2021 Second Lien maturity and extends RBL maturity to 2023 • No scheduled principal repayments required until 2023 • Eliminates conversion features associated with Second Lien, Series C and Series D preferred stock and reduces Series C redemption premium • Simplifies the capital structure Transaction Summary Second Lien claim balance of approximately $133.6MM exchanged for: • $60.0MM Series E Convertible Perpetual Preferred Stock ─ 8.25% PIK interest; toggles to cash pay or increased PIK rate (9.25%) in 2021 at the option of the Company ─ $2.50/share Conversion Price ─ Optional redemption . Ability to redeem when common stock trades at or above 150% of conversion price ($3.75) . Optional redemption premium: Yr1 - 10%, Yr2 – 5%, 0% thereafter . No redemption premium for a redemption in connection with a Change of Control • $55.0MM Series F Non-Convertible Perpetual Preferred Stock ─ 9.0% PIK interest; toggles to cash pay or increased PIK rate (10.00%) in 2021 at the option of the Company ─ Optional redemption premium of 15% at anytime • Approximately $18.6MM balance paid in common stock at closing (approximately 9.9MM shares) Extinguishment of Series C and D preferred conversion features and voting rights: • Extinguishment of all conversion features linked to Second Lien, Series C, and Series D preferred stock offset by issuance of new common shares and Series E dilutives ─ Fully diluted share count decreases by 9%, approximately 12MM • 7.75MM new common shares issued in exchange for the extinguishment of convertible features (and associated voting rights) of the existing Series C and D Preferred Stock • Series C redemption premium capped at 25%, resulting in potential savings up to $8MM

Increased Borrowing Base to $125MM: • Concurrent with the exchange and the regularly scheduled spring redetermination, Lilis increased its borrowing base to $125MM The credit facility is led by BMO Capital Markets Corp. and SunTrust Robinson Humphrey, Inc. as Joint Lead Arrangers; BMO Harris Bank, N.A. as Administrative Agent; SunTrust Bank as Syndication Agent; Capital One, N.A. as Documentation Agent, and Credit Suisse AG Conference Call: Management will host a conference call on Friday, March 8, 2019 at 11:00 AM Eastern Time to review financial results and provide an update on corporate developments. Following management’s formal remarks, there will be a question and answer session. Participants are asked to preregister for the call through the following link: http://dpregister.com/10129253. Please note that registered participants will receive their dial in number upon registration and will dial directly into the call without delay. Those without internet access or who are unable to pre-register may dial in by calling: 1-866-777-2509 (domestic), 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Lilis Energy Inc. call. The conference call will also be available through a live webcast, which can be accessed via the following link: https://services.choruscall.com/links/llex190308.html, which is also available through the company’s website at: http://investors.lilisenergy.com/events-presentations. A webcast replay of the call will be available approximately one hour after the end of the call through June 8, 2019. The replay can be accessed through the above links. About Lilis Energy, Inc. Lilis Energy, Inc. is a Houston-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’ current total net acreage in the Permian Basin is over 20,000 acres. Lilis Energy's near-term focus is to grow current reserves and production and pursue strategic acquisitions in its core areas. For more information, please visit www.lilisenergy.com. Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These risks include, but are not limited to, our ability to replicate the results described in this release for future wells; the ability to finance our continued exploration, drilling operations and working capital needs; all the other uncertainties, costs and risks involved in exploration and development activities; and the other risks identified in the Company’s Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ

materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date hereof, and the Company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Forward-looking statements regarding expected production levels are based upon our estimates of the successful completion of drilled wells on schedule. Actual sales production rates from our wells can vary considerably from tested initial production (IP) rates and are subject to natural decline rates over the life of the well. Contact: Wobbe Ploegsma V.P. Capital Markets & Investor Relations 210-999-5400, ext. 31

EX-99.2

Recapitalization Summary March 5, 2019 NYSE American | LLEX

Disclaimer This presentation contains forward-looking statements. The use of words such as “believes”, “expects”, “anticipates”, “intends”, “plans”, “estimates”, “should”, “likely” or similar expressions, indicates a forward-looking statement. These statements and all the projections in this presentation are subject to risks and uncertainties and are based on the beliefs and assumptions of management, and information currently available to management. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. The identification in this presentation of factors that may affect Lilis’ future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive. These forward-looking statements are given only as of the date of this presentation. Except as required by law, we do not intend to, and undertake no obligation to, update any forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. These forward-looking statements include, among other things, statements about Lilis’ expectations, beliefs, intentions or business strategies for the future, statements concerning Lilis’ outlook with regard to the timing and amount of future production of oil, natural gas liquids and natural gas, price realizations, the nature and timing of capital expenditures for exploration and development, plans for funding operations and drilling program capital expenditures, the timing and success of specific projects, operating costs and other expenses, proved oil and natural gas reserves, Lilis’ future results of operations, financial position, liquidity and capital resources, outcomes and effects of litigation, claims and disputes and derivative activities. Factors that could cause Lilis’ actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the success of Lilis’ exploration and development efforts; the price of oil, gas and other produced gases and liquids; the worldwide economic situation; changes in interest rates or inflation; the ability of Lilis to transport gas, oil and other products; the ability of Lilis to raise additional capital, as it may be affected by current conditions in the stock market and competition in the oil and gas industry for risk capital; Lilis’ capital costs, which may be affected by delays or cost overruns; cost of production; environmental and other laws and regulations, as the same presently exist or may later be enacted, adopted or changed; Lilis’ ability to identify, finance and integrate any future acquisitions; and the volatility of Lilis’ stock price. See the risks discussed in Lilis’ Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. RESERVE/RESOURCE DISCLOSURE The Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions of such terms. Reserve estimates that are intended to meet SEC guidelines are included in our periodic reports filed with the SEC. In this presentation, Lilis sometimes refers to broader, less precise terms when characterizing reserve estimates, such as “resource potential” and “estimated ultimate recovery”, or “EUR”, which the SEC does not permit to be disclosed in SEC filings and are not intended to conform to SEC filing requirements. These estimates are by their nature more speculative than those disclosed in Lilis’ SEC filings and thus are subject to substantially greater uncertainty of being realized. They are based on internal estimates, are not reviewed or reported upon by any independent third party and are subject to ongoing review. Actual quantities recovered will likely differ substantially from these estimates. Factors affecting ultimate recovery of reserves include the scope of Lilis’ actual drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices (including prevailing oil and gas prices), availability of drilling services and equipment, lease expirations, transportation constraints, regulatory approvals, field spacing rules, actual recoveries of oil and natural gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates, and other factors. These estimates may change significantly as the development of properties provides additional data. Investors are urged to consider closely the oil and gas disclosures in Lilis’ most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings. No Liability. Recipients are urged to consult with their own independent legal and financial advisors with respect to any investment. This presentation should be independently verified. Neither Lilis nor any of its officers, directors, members, employees or consultants, accept any liability whatsoever for any direct or consequential loss arising from any use of information contain in this presentation. Investing in securities can be speculative and can carry a high degree of risk. 2

Transformative Recapitalization / RBL Increase – Transaction Highlights • Transformative recapitalization transaction that results in a simplified, RBL-only Reduced debt structure Leverage • Projected leverage of approximately 2.0x by year-end 2019 Increased • Increased First Lien RBL Borrowing Base to $125MM (~16% increase) Liquidity • Additional liquidity of $17MM Decreased • Pro forma capital structure features a ~12MM share net reduction in the Common Equity Company’s fully diluted share count Dilution • Creates ~5-year runway free and clear of near-term debt maturities with the RBL Improved Debt maturity date of October 2023 Maturity Profile • Enhances our ability to appropriately manage asset development • Cash flow neutrality remains a strategic objective in 2019 Neutral Impact to Cash Flow • Dividends on new series of preferred equity may be paid-in-kind (PIK) at the option of the Company 3

Transformative Recapitalization / RBL Increase – Transaction Overview Transaction Overview (1) • Lilis is exchanging its Second Lien Term Loan for a combination of new preferred and common equity, eliminating the conversion features on existing Series C and D Preferred Stock, and capping the redemption price of the Series C • Significantly reduces the complexity of the Company’s capital structure to equity investors and improves its leverage profile • In connection with the recapitalization, Lilis has also secured an increased RBL Borrowing Base of $125MM (+$17MM), with a maturity of October 2023 2nd Lien Term Loan Exchanged for New Preferred Extinguishment of Series C and D Preferred Equity and Common Shares Conversion Features/Voting Rights 2nd lien TL value of ~$134MM exchanged for: • Fully diluted share count decreased by 9% or • $60MM Series E Conv. Perpetual Preferred Stock approximately 12MM shares ─ 8.25% per annum PIK dividends ─ 7.8MM common shares issued to extinguish ─ $2.50/share Conversion Price convertible features & voting rights on Series C and D Preferred Stock ─ No premium for redemption in a Change of Control; Optional redemption premium of 10% ─ Existing Series C Preferred Stock redemption in year 1, 5% in year 2, and none thereafter premium capped at 25% (formerly 30%) • $55MM Series F Non-Conv. Perpetual Pref. Stock ─ 9% per annum PIK dividends ─ Optional redemption premium of 15% • $19MM Common Stock 1) See Appendix for summary terms of new Preferred Equity 4

Transformative Recapitalization / RBL Increase – Pro Forma Capital Structure (Unaudited) ($MM) 12/31/18 PF Adj. PF 12/31/18 1 Series E Convertible Preferred Stock Cash & Cash Equivalents $ 21.1 $ - $ 21.1 • $60MM Face Value • 8.25% annual PIK dividends Debt $2.50/share Conversion Price Revolving Credit Facility $ 75.0 $ - $ 75.0 • Second Lien Term Loan (Principal + PIK) 111.6 (111.6) - • Optional redemption premium of 10% in year 1, 5% in year 2, and zero Total Debt $ 186.6 $ (111.6) $ 75.0 thereafter (+) Second Lien MW Premium 1 22.0 (22.0) - Total Debt (incl. 2L MW) $ 208.6 $ (133.6) $ 75.0 Equity 2 Series F Non-Conv. Preferred Stock Series C Preferred Stock $ 134.8 $ - $ 134.8 • $55MM Face Value Series D Preferred Stock 40.0 - 40.0 • 9.0% annual PIK dividends Series E Preferred Stock - 1 60.0 60.0 • Optional redemption premium of Series F Preferred Stock - 2 55.0 55.0 15% Common Stock 321.8 3 18.6 340.3 Other Stockholders' Equity (Deficit) (307.7) - (307.7) New Common Equity Total Equity $ 188.8 $ 133.6 $ 322.4 3 • Shares issued upon transaction Total Capitalization $ 375.5 $ 21.9 $ 397.4 closing at market price • 3/4/2019 price of $1.88 per share Liquidity results in issuance of 9.9 million nd Cash & Cash Equivalents $ 21.1 $ - $ 21.1 shares to cover balance of 2 Lien facility (+) RBL Facility Capacity 108.0 4 17.0 125.0 (-) RBL Facility Borrowings (75.0) - (75.0) 4 RBL Facility Increase Total Liquidity $ 54.1 $ 17.0 $ 71.1 • 2nd Lien paydown frees up $17MM in BB capacity 1) 2nd Lien make whole includes accrued interest through 3/4/19 5

Transformative Recapitalization / RBL Increase – Pro Forma Fully Diluted Share Count (1) Common Stock Issuance LLEX Diluted Share Count 1 • 7.8MM shares eliminate Series C&D conversion and voting rights Pro Forma 2L Conversion and 9.9MM shares for 2L claim value Extinguishment of Series C&D • Conversion Features • Represents 24% common dilution Outstanding 2L Conversion Pro Forma • Värde PF common ownership increases from 8.1% to 25.8%, 3/4/19 3/4/19 3/4/19 (2) improving economic alignment Total Common Shares Outstanding 73,682,816 1 17,641,638 91,324,454 between Värde and other shareholders Dilutive Equity (incl. PIK & MW) 2nd Lien Note 17,003,163 2 (17,003,163) - 2 2L, Series C&D Dilutive Elimination Series C Preferred Equity 27,858,631 (27,858,631) - • Elimination of 2L and Series C&D Series D Preferred Equity 8,667,020 (8,667,020) - conversion features removes Series E Preferred Equity - 3 24,000,000 24,000,000 53.5MM dilutive shares Total Dilutives 53,528,814 (29,528,814) 24,000,000 • Total dilutives decrease by 29.5MM net shares or 55% Current Fully Diluted Shares 127,211,630 4 (11,887,176) 115,324,454 3 Series E Preferred Stock Issuance (1) Note: Based on 3/4/19 closing price of $1.88 per share for the issue price of new common stock • $60MM Series E Stated Value / $2.50 per share conversion price • Simplifies dilutive impact to one class of preferred shares 4 Net Change in Fully Diluted Shares • Fully diluted share count decreases 9.3% or 11.9MM shares 6

Appendix: Preferred Stock and RBL Summary Terms 7

Perpetual Preferred Stock – Summary of Terms Security Class Series C Series D Series E Series F Non-Convert. Participating Preferred Stock Non-Convert. Participating Preferred Stock Convertible Participating Preferred Stock Non-Convert. Participating Preferred Stock Principal Amount $125 million face value $39.3 million face value $60 million face value $55 million face value Dividend Rate • 9.75% PIK option until 4/26/21; • 8.25% PIK option until 4/26/21; • 8.25% PIK option until 4/26/21; • 9.00% PIK option until 4/26/21; (per annum) • 12.00% cash dividends thereafter; or • 11.00% cash dividends thereafter; or • 8.25% cash dividends thereafter; or • 9.00% cash dividends thereafter; or • 15.00% PIK thereafter if not paid in cash • 15.00% PIK thereafter if not paid in cash • 9.25% PIK thereafter if not paid in cash • 10.00% PIK thereafter if not paid in cash Optional Redemption • Redeemable in whole or in part at any • Redeemable in whole or in part at any • Redeemable in whole or in part at the • Redeemable in whole or in part at any (company option) time at the Company’s option at the time at the Company’s option at the Company’s option at the Stated Value time at the Company’s option at the Stated Value multiplied by: Stated Value multiplied by: plus accrued and unpaid dividends (the Stated Value multiplied by: — 125.0% flat redemption premium — 117.5% flat redemption premium “Redemption Price”) subject to the Series — 115.0% flat redemption premium • Plus accrued and unpaid dividends (the • Plus accrued and unpaid dividends (the E Optional Redemption Mechanics • Plus accrued and unpaid dividends (the “Redemption Price”) “Redemption Price”) language below (1) except where the “Redemption Price”) redemption is effected in connection with a Change of Control Optional Conversion • None • None • Convertible in whole or in part at any • None time at the holder’s option Conversion Price • N/A • N/A • $2.50 per share • N/A Conversion Rate • None • None • Convertible into common stock at: the • None Stated Value plus accrued an unpaid dividends divided by the Conversion Price Mandatory • None, except upon a Change of Control Redemption (1) Series E Optional Redemption Mechanics: • The Company may not redeem the Series E Preferred Stock prior to the earlier of (i) 3/6/22 and (ii) the redemption of all of the Series F Preferred Stock • The Company may not redeem the Series E Preferred Stock prior to 3/6/22 unless: (i) the VWAP of the Common Stock equals or exceeds 150.0% of the Conversion Price for at least 20 of the 30 preceding trading days and (ii) all then-outstanding Series E Preferred Stock is redeemed • The Company may not redeem the Series E Preferred Stock unless the funds for the redemption are from the net proceeds of a contemporaneous issuance of Common Stock, • If the Series E Preferred Stock is redeemed on or before March 5, 2021, the Series E Redemption Price will include a premium on the Stated Value equal to: — 10%, if redeemed on or before 3/5/20; and — 5%, if redeemed after 3/5/20 and on or before 3/5/21 8

Revolving Credit Facility – Summary of Terms Borrower: Lilis Energy, Inc. Lead Arranger: BMO Capital Markets Facility: $500 million Senior Secured Revolving Credit Facility governed by a Borrowing Base of $125 million • The Borrowing Base is subject to semi-annual redeterminations scheduled each May 1 and November 1, beginning November 1, 2019 • The next redetermination will be scheduled for July 1, 2019 • Borrower and Required Lenders each have the right to one wildcard redetermination between scheduled redeterminations Guarantors: Each existing and subsequently acquired or organized direct and indirect material domestic subsidiary of the Borrower that is not an unrestricted subsidiary Security: Secured by valid and perfected first priority security interests in and liens on all of the following: • At least 90% of the PV9 of proved oil and gas reserves of the Credit Parties • Substantially all personal property including 100% of the stock of the Guarantors, swap agreements, and all deposit, securities, and commodities accounts, subject to customary exceptions Maturity Date: October 10, 2023 Financial Covenants: • Maximum Total Debt to EBITDAX of 4.0 to 1.00; EBITDAX to be annualized through the quarter ending 6/30/19 • Minimum Current Ratio of 1.00 to 1.00 Affirmative / Usual and customary for a facility of this type Negative Covenants: Pricing: BORROWING BASE USAGE UNUSED COMMITMENT FEE LIBOR RATE SPREAD ≥ 90% 50.0 bps 325.0 bps ≥ 75% < 90% 50.0 bps 300.0 bps ≥ 50% < 75% 50.0 bps 275.0 bps ≥ 25% < 50% 50.0 bps 250.0 bps < 25% 50.0 bps 225.0 bps Note: LC’s priced at applicable LIBOR Rate Spread Voting: • 100% vote on Borrowing Base Increase • 66⅔% vote on Borrowing Base Maintenance/Decrease • 50% vote on Waivers/Amendments other than certain 100% lender vote items 9

Wobbe Ploegsma VP of Finance & Capital Markets ir@lilisenergy.com 210.999.5400 NYSE American | LLEX