Lilis Energy Inc. (NYSE: LLEX), an exploration and development company operating in the Permian Basin of West Texas, said Aug. 14 it has entered into a long-term gas gathering, processing and purchase agreement with an affiliate of Lucid Energy Group to support Lilis's active drilling program in the 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 in Texas. The agreement secures sufficient term and capacity for Lilis during its development and exploitation life cycle of the production areas, as promised in 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’ CEO 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’ CFO 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."
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