LILIS ENERGY, INC. (OTCMKTS:LLEX) Files An 8-K Changes in Registrant’s Certifying Accountant

Item 4.01

(a) Dismissal of Independent Registered Public Accounting Firm

On April 13, 2017, Lilis Energy, Inc. (the Company) notified
Marcum LLP (Marcum) of its dismissal as the Companys independent
registered public accounting firm, effective immediately. The
dismissal of Marcum was approved by the Audit Committee of the
Board of Directors of the Company (the Audit Committee).

The audit reports of Marcum on the Companys financial statements
for each of the fiscal years ended December31, 2016 and 2015 did
not contain an adverse opinion or a disclaimer of opinion and
were not qualified or modified as to uncertainty, audit scope or
accounting principles, except that the report for fiscal year
ended December 31, 2015 contained an explanatory paragraph
stating that there was substantial doubt about the Companys
ability to continue as a going concern.

During the fiscal years ended December31, 2016 and 2015, and the
subsequent interim period through April 13, 2017, there were no
disagreements (as such term is used in Item304(a)(1)(iv) of
Regulation S-K and the related instructions to that Item) with
Marcum on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure,
which disagreements, if not resolved to the satisfaction of
Marcum, would have caused Marcum to make reference to the subject
matter of the disagreement in its reports.

During the fiscal years ended December31, 2016 and 2015, and the
subsequent interim period through April 13, 2017, there was no
reportable event (as that term is defined in 304(a)(1)(v) of
Regulation S-K), except as follows.

As described in more detail in Item 9A in the Companys Annual
Report on Form 10-K for fiscal year ended December 31, 2015 filed
with the Securities and Exchange Commission (the Commission) on
April 14, 2016, management concluded that the Company did not
design and maintain effective internal controls over financial
reporting. Specifically, the Company determined that (1) while it
has implemented written policies and procedures for accounting
and financial reporting with respect to the requirements and
application of GAAP and SEC disclosure requirements, due to
limited resources, it has not conducted a formal assessment of
whether its policies that have been implemented address the
specific risks of misstatement and (2) it does not have a fully
effective mechanism for monitoring the system of internal
controls. This control deficiency did not result in any
adjustments to the Companys financial statements. As reported in
Item 9A in the Companys Annual Report on Form 10-K for fiscal
year ended December 31, 2016 filed with the Commission on March
3, 2017, management concluded that the Companys internal control
over financial reporting was effective and the control deficiency
mentioned above had been fully remediated. The Company provided
Marcum with a copy of this Current Report on Form 8-K prior to
its filing with the Commission and requested Marcum to furnish
the Company with a letter addressed to the Commission stating
whether Marcum agrees with the statements contained herein and,
if not, stating the respects in which it does not agree. A copy
of Marcums letter dated April 14, 2017 is attached as Exhibit
16.1 to this Current Report on Form 8-K.

(b) Engagement of Independent Registered Public Accounting Firm

On April 13, 2017, the Audit Committee engaged BDO USA, LLP (BDO)
as the Companys independent registered public accounting firm for
the fiscal year ending December31, 2017, effective immediately.
The engagement of BDO has been approved by the Audit Committee
and ratified by the Board of Directors.

During the fiscal years ended December31, 2016 and 2015, and the
subsequent interim period through April 13, 2017, neither the
Company nor anyone on its behalf consulted BDO regarding (i)the
application of accounting principles to a specified transaction,
either completed or proposed, (ii) the type of audit opinion that
might be rendered on the Companys financial statements, and
neither a written report nor oral advice was provided to the
Company that BDO concluded was an important factor considered by
the Company in reaching a decision as to any accounting,
auditing, or financial reporting issue, (ii) any matter that was
either the subject of a disagreement as such term is defined in
Item 304(a)(1)(iv) of Regulation S-K or a reportable event as
such term is defined in Item 304(a)(1)(v) of Regulation S-K
(there being none).

On April 14, 2017, the Company issued a press release announcing
the appointment of BDO USA, LLP as its new independent registered
public accountant, replacing Marcum LLP. A copy of that press
release is attached hereto as Exhibit 99.1.

The information in this Item 7.01 is being furnished and shall
not be deemed filed for any purpose, including for the purposes
of Section 18 of the Securities Exchange Act of 1934, as amended
(the Exchange Act), or otherwise subject to the liabilities of
such section. The information in this Item 7.01, shall not be
deemed incorporated by reference into any filing under the
Securities Act of 1933, as amended, or the Exchange Act
regardless of any general incorporation language in such filing,
except as shall be expressly set forth by specific reference in
such a filing.

About LILIS ENERGY, INC. (OTCMKTS:LLEX)

Lilis Energy, Inc. is an upstream independent oil and gas company. The Company is engaged in the acquisition, drilling and production of oil and natural gas properties and prospects. The Company drills for, operates and produces oil and natural gas wells through its land holdings located in Wyoming, Colorado, and Nebraska. Its total net acreage in the Denver-Julesburg (DJ) Basin is approximately 7,200 acres. The Company’s primary targets within the DJ Basin are the conventional Dakota and Muddy J formations. In addition to its DJ Basin holdings, it focuses on the Permian’s Delaware Basin in Winkler and Loving Counties, Texas and Lea County, New Mexico. The Company’s net acreage in the Delaware Basin is approximately 4,433 net acres. The vertical well produces approximately 690 net million cubic feet (mcf) per day. The well holds the lease to all depths, from surface down to approximately 22,000 feet, including the Wolfcamp, Bone Springs, and Avalon formations.

LILIS ENERGY, INC. (OTCMKTS:LLEX) Recent Trading Information

LILIS ENERGY, INC. (OTCMKTS:LLEX) closed its last trading session up +0.03 at 3.70 with 53,804 shares trading hands.