LILIS ENERGY, INC. (OTCMKTS:LLEX) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Item 5.02

Chief Operating Officer

On January 27, 2017, the Company appointed Brennan Short as Chief
Operating Officer of Company, effective immediately. In
connection with his appointment, Mr. Short entered into an
employment agreement with the Company. The initial term of the
agreement is scheduled to end on December 31, 2017, and the
agreement will renew automatically for additional one-year
periods beginning on December 31, 2017, unless either party gives
notice of non-renewal at least 180 days before the end of the
then-current term.

Mr. Shorts base salary will be $300,000. This base salary will be
reviewed periodically for increase by the Companys Board of
Directors (the Board). Mr. Short will be eligible to receive an
additional cash bonus equal to a percentage of his base salary
(ranging from 0% to 400%) depending on the level of achievement
of certain BOE per day, EBITDAX and cash on hand performance
measures during the first year of his agreement. Mr. Short will
also be eligible to receive awards of equity and non-equity
compensation and to participate in the Companys annual and
long-term incentive plans, in each case as determined by the
Board in its discretion. On January 27, 2017, Mr. Short received
a grant of stock options under the Companys 2016 Omnibus
Incentive Plan to purchase 250,000 shares of common stock with an
exercise price of $4.35. Mr. Short also received a grant of
restricted stock under the Companys 2016 Omnibus Incentive Plan
in the amount of 75,000 restricted shares. Both the options and
the restricted stock are scheduled to vest over two years, with
34% vesting on the date of the grant, 33% vesting on the first
anniversary of the date of the grant and 33% vesting on the
second anniversary of the date of the grant, subject to continued
service through each vesting date

Under his employment agreement, Mr. Short will be entitled to a
lump sum severance payment equal to 12 months of base salary plus
COBRA premiums upon a termination by the Company without cause or
a termination by him for good reason (or 24 months if the
termination occurs within 12 months following a change in
control). If his employment agreement is terminated due to death
or disability, he will be entitled to a lump sum severance
payment equal to six months of COBRA premiums. All severance
payments under Mr. Shorts employment agreement are subject to his
execution and non-revocation of a release of claims against the
Company. The severance payments are also subject to reduction in
order to avoid any excise tax associated with Section 280G of the
Internal Revenue Code, but only if that reduction would result in
Mr. Short receiving a greater net after tax benefit as a result
of the reduction. All payments to Mr. Short under his employment
agreement will be subject to clawback to the extent required by
applicable law. Further, Mr. Short is subject to non-competition,
non-solicitation, anti-raiding, and confidentiality provisions
under his employment agreement.

The foregoing description of the Companys employment agreement
with Mr. Short is not complete and is subject in its entirety by
reference to the terms of such employment agreement, a copy of
which is attached as Exhibit 10.1 hereto.

Prior to his appointment as Chief Operating Officer of the
Company, the Company engaged Mr. Short in a consulting capacity
beginning in November, 2016. Prior to joining the Company, Mr.
Short, age 42, most recently held the position of President at
MMZ Consulting Inc. from May 2012 to January 2017, where he
provided full cycle drilling completions engineering and
operational support to multiple clients. Mr. Short has over 20
years of proven expertise in domestic oil gas exploration and
production operations, field supervision, management and
petroleum engineering consulting. Prior to forming MMZ Consulting
Inc., Mr. Short held the position of Drilling Engineering
Specialist at EOG Resources, Inc. from March 2010 to May 2012,
where he was a drilling engineer in the infancy of the Eagleford
Shale Play in South Texas. Previous to his role EOG Resources,
Inc., Mr. Short was a Drilling Engineer at SM Energy from
November 2007 to March 2010 and a Drilling Engineer at Samson
Investment Company from March 2005 to November 2007. Mr. Short
earned his Bachelors degree in Petroleum Engineering from Texas
AM University.

On January 31, 2017, the Company issued a press release
announcing the appointment of Mr. Short. A copy of that press
release is attached hereto as Exhibit 99.1.

Also on January 31, 2017, the Company posted an updated investor
presentation on its website, http://www.lilisenergy.com. A copy
of the presentation materials is furnished hereto as Exhibit 99.2
to this Current Report on Form 8-K and can be reviewed in the
Investors section of the Companys website.

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.

(d) Exhibits

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 down -0.27 at 4.08 with 198,983 shares trading hands.