Lilis Energy (LLEX) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 10, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	LILIS ENERGY, INC.
Entity Central Index Key	1,437,557
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	LLEX
Entity Common Stock, Shares Outstanding		50,419,551

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 20,416	$ 11,738
Accounts receivables, net of allowance of $78 and $106, respectively	5,917	2,247
Prepaid expenses and other current assets	1,520	767
Total current assets	27,853	14,752
Oil and gas properties, full cost method of accounting
Unproved	27,176	24,461
Proved	27,280	69,809
Less: accumulated depreciation, depletion, amortization and impairment	(6,575)	(55,771)
Total oil and gas properties, net	47,881	38,499
Other assets:
Other property and equipment, net	55	52
Other assets	325	216
Total other assets	380	268
Total assets	76,114	53,519
Current liabilities:
Accounts payable	4,390	5,166
Accrued liabilities	7,005	2,706
Dividends payable	948	808
Asset retirement obligations	331	338
Current portion of long-term debt	17	17
Total current liabilities	12,691	9,035
Long term liabilities:
Asset retirement obligations	938	919
Long-term debt, net of current portion	36,137	30,226
Long-term derivative liabilities	683	1,400
Total liabilities	50,449	41,580
Commitments and contingencies (Note 12)
Conditionally redeemable 6% preferred stock, $0.0001 par value, 7,000 shares authorized, 2,000 shares issued and outstanding with a liquidation preference of $2,270 and $2,240 at March 31, 2017 and December 31, 2016, respectively	1,915	1,874
Stockholders’ Equity:
Common stock, $0.0001 par value; 100,000,000 shares authorized, 30,233,397 and 20,918,901 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively.	3	2
Additional paid-in capital	244,969	219,837
Accumulated deficit	(232,205)	(223,206)
Total stockholders’ equity	23,750	10,065
Total liabilities, redeemable preferred stock and stockholders’ equity	76,114	53,519
Series B Preferred Stock [Member]
Stockholders’ Equity:
Preferred stock value	$ 10,983	$ 13,432

Consolidated Balance Sheets _Pa

Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Allowance related to accounts receivable	$ 78	$ 106
Redeemable 6% preferred stock, par value	$ 0.0001	$ 0.0001
Redeemable 6% preferred stock, shares authorized	7,000	7,000
Redeemable 6% preferred stock, shares issued	2,000	2,000
Redeemable 6% preferred stock, shares outstanding	2,000	2,000
Redeemable 6% preferred stock, liquidation preferences	$ 2,270	$ 2,240
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	30,233,397	20,918,901
Common Stock, Shares, Outstanding	30,233,397	20,918,901
Series B Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock Value Stated Rate	$ 1,000	$ 1,000
Preferred Stock, Shares Authorized	20,000	20,000
Preferred Stock, Shares Issued	14,379	16,882
Preferred Stock, Shares Outstanding	14,379	16,828
Preferred Stock, liquidation preference	$ 20,686	$ 20,627

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Oil, natural gas and natural gas liquid sales	$ 3,233	$ 42
Costs and expenses:
Production costs	929	37
Production taxes	142	2
General and administrative	9,311	1,664
Depreciation, depletion and amortization	1,124	20
Accretion of asset retirement obligations	22	3
Total operating expenses	11,528	1,726
Loss from operations	(8,295)	(1,684)
Other income (expense):
Other income	8	(1)
Gain (loss) in fair value of derivative instruments	346	(68)
Loss in fair value of conditionally redeemable 6% preferred stock	(41)	(324)
Interest expense	(774)	(1,334)
Total other income (expense)	(461)	(1,727)
Net loss before income tax	(8,756)	(3,411)
Income tax expense	0	0
Net loss	(8,756)	(3,411)
Dividends on redeemable preferred stock	(30)	(30)
Dividend on Series B Convertible Preferred stock	(213)	(150)
Net loss attributable to common stockholders	$ (8,999)	$ (3,591)
Net loss per common share basic and diluted	$ (0.32)	$ (0.12)
Weighted average common shares outstanding:
Basic and diluted	27,847,651	29,152,369

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (8,756)	$ (3,411)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity instruments issued for services and compensation	2,779	369
Amortization of deferred financing cost	127	27
Accretion of debt discount	115	794
Loss in fair value of derivative instruments	(346)	68
Depreciation, depletion, amortization	1,124	20
Loss in fair value of conditionally redeemable 6% preferred stock	41	324
Accretion of asset retirement obligation	22	3
Changes in operating assets and liabilities:
Accounts receivable	(3,671)	(34)
Prepaid and other assets	(216)	(312)
Accounts payable, accrued expenses and other liabilities	3,527	1,370
Net cash used in operating activities	(5,254)	(782)
Cash flows from investing activities:
Cash advance to Brushy Resources, Inc.	0	(608)
Proceeds from sale of DJ Basin properties	1,082	0
Restricted cash	(645)	9
Capital expenditures	(11,360)	0
Net cash used in investing activities	(10,923)	(599)
Cash flows from financing activities:
Proceeds from term loan, net of financing costs	6,706	0
Proceeds from issuance of convertible notes	0	1,300
Proceeds from warrant exercise	71	0
Proceeds from exercise of stock options	228	0
Proceeds from private placement, net of financing costs and subscription receivable	17,854	0
Repayment of notes payable	(4)	0
Net cash provided by financing activities	24,855	1,300
Increase (decrease) in cash	8,678	(81)
Cash at beginning of period	11,738	110
Cash at end of period	20,416	29
Supplemental disclosure:
Cash paid for interest	$ 926	$ 87

ORGANIZATION

ORGANIZATION	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	NOTE 1 - ORGANIZATION Lilis Energy, Inc. (“Lilis”, “Lilis Energy” and the “Company”) is an independent oil and gas exploration and production company focused on the Delaware Basin in Reeves, Winkler and Loving Counties, Texas and Lea County, New Mexico. On June 23, 2016, the Company completed a merger transaction with Brushy Resources, Inc. (“Brushy”) and effected a 1-for-10 reverse stock split All references to production, sales volumes and reserves quantities are net to the Company’s interest unless otherwise indicated.

MANAGEMENT PLANS AND LIQUIDITY

MANAGEMENT PLANS AND LIQUIDITY	3 Months Ended
	Mar. 31, 2017
MANAGEMENT PLANS AND LIQUIDITY [Abstract]
MANAGEMENT PLANS AND LIQUIDITY	NOTE 2 - MANAGEMENT PLANS AND LIQUIDITY The Company has reported net operating losses during the three months ended March 31, 2017 and for the past five years. As a result, in 2016 and 2017 the Company funded its operations and the merger with Brushy through additional debt and equity financing. On September 29, 2016, the Company entered into a First Lien Credit Agreement (defined below) that provides for a three-year, senior, secured term loan with initial aggregate principal commitments of $ 31.0 50 31.0 38.1 15.2 20.4 15 125 80 45 56.6 38.3

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. As of March 31, 2017, the Company’s wholly owned subsidiaries include Brushy Resources, Inc (“Brushy”), ImPetro Operating, LLC (“ImPetro Operating”), ImPetro Resources, LLC (“Resources”), and Lilis Operating Company, LLC (“Lilis Operating”). All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The Company’s accounting policies are described in the Notes to Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2016, and updated, as necessary, in this Quarterly Report on Form 10-Q. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. Although actual results may differ from these estimates under different assumptions or conditions, the Company believes that its estimates are reasonable. The most significant financial estimates are associated with the Company’s estimated volumes of proved oil and natural gas reserves, asset retirement obligations, assessments of impairment on oil and gas properties, fair value of financial instruments, including derivative liabilities and conditionally redeemable preferred stock, depreciation and accretion, income taxes and contingencies. Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications have no effect on the Company’s previously reported results of operations. For the three months ended March 31, 2016, change in fair value on executive bonus of approximately $ 222,000 The Company follows the full cost method of accounting for oil and gas operations whereby all costs related to the exploration, non-production related development and acquisition of oil and natural gas reserves are capitalized. Such costs include land acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling, developing and completing productive wells and/or plugging and abandoning non-productive wells, and any other costs directly related to acquisition and exploration activities. Proceeds from property sales are generally applied as a credit against capitalized exploration and development costs, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more Depletion of exploration and development costs and depreciation of wells and tangible production assets is computed using the units-of-production method based upon estimated proved oil and gas reserves. Costs included in the depletion base to be amortized include (a) all proved capitalized costs including capitalized asset retirement costs net of estimated salvage values, less accumulated depletion, (b) estimated future development costs to be incurred in developing proved reserves; and (c) estimated decommissioning and abandonment/restoration costs, net of estimated salvage values, that are not otherwise included in capitalized costs. The costs of undeveloped acreage are withheld from the depletion base until it is determined whether or not proved reserves can be assigned to the properties. When proved reserves are assigned to such properties or one or more specific properties are deemed to be impaired, the cost of such properties or the amount of the impairment is added to the full cost pool which is subject to depletion calculations. Under the full cost method of accounting, capitalized oil and gas property costs less accumulated depletion and net of deferred income taxes may not exceed an amount equal to the sum of the present value, discounted at 10 The present value of estimated future net cash flows was computed by applying a flat oil price to forecast revenues from estimated future production of proved oil and gas reserves as of period-end, less estimated future expenditures to be incurred in developing and producing the proved reserves (assuming the continuation of existing economic conditions), less any applicable future taxes. The flat oil price is the first-day-of-the-month price as defined by the SEC in Rule 4-10 of Regulation S-X which includes the 12-month average of first-day-of-the-month prices from various indices. The flat oil price is adjusted to match up with accounting data through the use of a differential. Accrued Liabilities As of March 31, 2017 and December 31, 2016, the Company’s accrued liabilities consisted of the following: March 31, December 31, 2017 2016 Accrued bonus $ 894 $ - Accrued financing costs 659 - Accrued drilling costs 1,763 1,331 Accrued revenue 2,433 1,313 Accrued costs related to divestiture of DJ Basin properties 584 - Accrued payroll tax withholding 237 - Other accrued liabilities 435 62 $ 7,005 $ 2,706 The Company incurs retirement obligations for certain assets at the time they are placed in service. The fair values of these obligations are recorded as liabilities on a discounted basis. The costs associated with these liabilities are capitalized as part of the related assets and depreciated. Over time, the liabilities are accreted for the change in their present value. For purposes of depletion calculations, the Company includes estimated dismantlement and abandonment cost, net of salvage values, associated with future development activities that have not yet been capitalized as asset retirement obligations. Asset retirement obligations incurred are classified as Level 3 (unobservable inputs) fair value measurements. The asset retirement liability is allocated to operating expense using a systematic and rational method. The Company has accreted approximately $ 22,000 3,000 The Company recognizes revenue when it is realized or realizable and earned. Revenues are considered realized or realizable and earned when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the seller's price to the buyer is fixed or determinable and (iv) collectability is reasonably assured. The Company uses the entitlements method of accounting for oil, natural gas and natural gas liquid (NGL) revenues. Should sales proceeds be in excess of the Company's entitlement, these amounts will be included in accrued liabilities and the Company's share of sales taken by others will be included in other assets in the accompanying consolidated balance sheets. The Company had no material oil, natural gas or NGL entitlement assets or liabilities as of March 31, 2017 and December 31, 2016. All revenue proceeds relating to third-party royalty owners not remitted by the end of a reporting period are accounted for in accrued revenue. As of March 31, 2017 and December 31, 2016, the Company had approximately $ 2.4 1.3 Three Months Ended March 31, 2017 2016 Texican Natural Gas Company 77 % - % Energy Transfer Partners, L.P. 16 % - % Shell Trading (US) Company 2 % 32 % Peterson Energy Operating - % 30 % PDC Energy, Inc. - % 38 % Others below 10% 5 % - % 100 % 100 % Impairment of Long-lived Assets The Company accounts for long-lived assets (other than oil and gas properties) at cost. Other long-lived assets consist principally of property and equipment and identifiable intangible assets with finite useful lives (subject to amortization, depletion, and depreciation). The Company may impair these assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. Recoverability is measured by comparing the carrying amount of an asset to the expected undiscounted future net cash flows generated by the asset. If it is determined that the asset may not be recoverable, and if the carrying amount of an asset exceeds its estimated fair value, an impairment charge is recognized to the extent of the difference. Loss Per Share Basic loss per share was calculated by dividing loss applicable to common shares by the weighted average number of common shares outstanding during the periods presented. The weighted average common shares outstanding include issued and outstanding shares of common stock and shares issuable for little or no consideration. The Company has included 3,738,639 3,522,735 March 31, December 31, 2017 2016 Stock Options 6,318,500 5,956,833 Restricted Stock Units 9,999 149,584 Restricted Stock 1,116,669 1,068,305 Series B Preferred Stock 13,071,818 15,454,545 Stock Purchase Warrants, excluding warrants exercisable for $0.01 per share 12,946,986 12,392,776 33,463,972 35,022,043 The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”). The ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on its consolidated financial position and/or results of operations. On February 22, 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-05, “ Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”, In January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business”, The FASB issued ASU 2016-18, “Restricted Cash (Topic 230),” In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” The FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In March 2016, the FASB issued ASU No. 2016-06, “ Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments” On August 26, 2016, the FASB issued ASU No. 2016-15, “ Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)”,

OIL AND GAS PROPERTIES & OIL AN

OIL AND GAS PROPERTIES & OIL AND GAS PROPERTY ACQUISITIONS AND DIVESTITURES	3 Months Ended
	Mar. 31, 2017
Extractive Industries [Abstract]
OIL AND GAS PROPERTIES & OIL AND GAS PROPERTY ACQUISITIONS AND DIVESTITURES	NOTE 4 - OIL AND GAS PROPERTIES & OIL AND GAS PROPERTY ACQUISITIONS AND DIVESTITURES Divestiture of DJ Basin Properties On March 31, 2017, the Company completed the divestiture of all of our oil and gas properties located in the Denver-Julesburg Basin (the “DJ Basin”) for a consideration of $ 2 Related Party Transactions. 1.08 0.7 0.22 The following table sets forth a summary of oil and gas property costs (net of divestitures) not being amortized at March 31, 2017 and December 31, 2016: March 31, December 31, 2017 2016 (In thousands) Unproved unevaluated acreage: Beginning Balance $ 24,461 $ - Lease purchases 2,715 546 Assets acquired - 23,915 Total unproved acreage $ 27,176 $ 24,461 Wells in progress: Beginning Balance $ 7,453 $ - Additions 2,834 7,453 Reclassification to evaluated properties (7,410) - Total wells in progress and not subject to DD&A $ 2,877 $ 7,453 During the three months ended March 31, 2017 and 2016, no impairment was recorded on the Company’s oil and gas properties. Depreciation, depletion and amortization expense related to proved properties was approximately $ 1.0 0.02

MERGER WITH BRUSHY RESOURCES, I

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
MERGERS, ACQUISITIONS AND DISPOSITIONS DISCLOSURES	NOTE 5 - MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS On June 23, 2016, the Company completed the merger transaction contemplated by the Agreement and Plan of Merger dated as of December 29, 2015, as amended to date (the “Merger Agreement”) by and among the Company, Brushy and Lilis Merger Sub, Inc., a Delaware corporation, a wholly-owned subsidiary of the Company (“Merger Sub”). Pursuant to the terms of the Merger Agreement, at the effective time (the “Effective Time”), Merger Sub merged with and into Brushy (the “Merger”), with Brushy continuing as the surviving corporation and becoming a wholly-owned subsidiary of Brushy. The Merger resulted in the acquisition of Brushy’s properties in the Delaware Basin as well as the majority of its current operating activity. The results of Brushy, since the closing date of the Merger are included in the Company’s consolidated statement of operations. The Merger was effected through the issuance of approximately 5.785 0.4550916 11.4 6.2 6.0 500,000 1 200,000 In connection with the Merger, Lilis incurred costs of approximately $ 3.22 3.05 170,000 Allocation of Purchase Price - The Merger was accounted for as a business combination, using the acquisition method. The following table represents the allocation of the total purchase price of Brushy to the assets and liabilities assumed based on the fair value on the closing date of the Merger. The following table sets forth the Company’s purchase price allocation (in thousands, except share data and stock price): Shares of Lilis Common Stock issued to Brushy shareholders 5,785,119 Lilis Common Stock closing price on June 23, 2016 $ 1.20 Fair value of Common Stock issued $ 6,942 Cash consideration paid to SOS 500 SOS Note 1,000 Fair value of SOS warrant 170 Warrant liability - repricing derivative 164 Advance to Brushy pre-merger 2,508 Total purchase price 11,284 Plus: liabilities assumed by Lilis Current Liabilities Account payable and accrued expenses $ 5,447 Term loan - Independent Bank 11,379 16,826 Long-Term Debt 19 Asset Retirement Obligation 777 Amount attributable to liabilities assumed 17,622 $ 28,906 Fair Value of Brushy Assets Current Assets: Cash $ 706 Other current assets 624 $ 1,330 Oil and Gas Properties: Proved properties 7,512 Unproved properties 19,662 27,174 Other assets Other Property Plant & Equipment 42 Other assets 360 402 Total Asset Value $ 28,906 Pro forma Financial Information - The following pro forma combined financial information was derived from the historical financial statements of Lilis and Brushy and gives effect to the Merger as if it had occurred on January 1, 2016 for the three months ended March 31, 2016. Below information reflects pro forma adjustments based on available information and certain assumptions that the Company believes are reasonable, including (i) Lilis’ Common Stock issued to convert Brushy’s outstanding shares of common stock as of the closing date of the Merger, (ii) adjustments to conform Brushy’s historical policy of accounting for its oil and natural gas properties from the successful efforts method to the full cost method of accounting, (iii) depletion of Brushy's fair-valued proved oil and gas properties, and (iv) the estimated tax impacts of the pro forma adjustments. The pro forma results of operations do not include any cost savings or other synergies that may result from the Merger or any estimated costs that have been or will be incurred by Lilis to integrate the Brushy assets. The pro forma combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Merger taken place on January 1, 2016; furthermore, the financial information is not intended to be a projection of future results March 31, 2016 (In thousands, except share data) Revenue $ 822 Net loss $ (5,479) Net loss attributable to common stockholders $ (5,479) Net loss per common share basic and diluted $ (0.18) Weighted average shares outstanding: Basic and diluted 30,606,552

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures fair value of its financial assets on a three-tier value hierarchy, which prioritizes the inputs, used in the valuation methodologies in measuring fair value: · Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 - Other inputs that are directly or indirectly observable in the marketplace. · Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s interest rate Term Loan and Debentures are measured using Level 3 inputs. (in thousands) March 31, 2017 Level 1 Level 2 Level 3 Total Recurring fair value measurements: Warrant liabilities - - (683) (683) Total recurring fair value measurements $ - $ - $ (683) $ (683) December 31, 2016 Level 1 Level 2 Level 3 Total Recurring fair value measurements: Warrant liabilities - - (1,400) (1,400) Total recurring fair value measurements $ - $ - $ (1,400) $ (1,400) (in thousands) : Bristol/ Heartland/SOS warrant liability Total Balance at January 1, 2017 $ (1,400) $ (1,400) Cashless exercise of warrant (1) 371 371 Change in fair value of liability 346 346 Balance at March 31, 2017 $ (683) $ (683) (1) On March 14, 2017, the Company issued 77,131 0.8 0.4 0.4 Convertible Debenture Bristol/ derivative Heartland/SOS Incentive liability warrant liability bonus Total Balance at January 1, 2016 $ (6) $ (56) $ (223) $ (285) Reversal of accrued bonus - - 223 223 Change in fair value of liability (49) (19) - (68) Balance at March 31, 2016 $ (55) $ (75) $ - $ (130) Assets and liabilities measured at fair value on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances. These assets and liabilities can include proved and unproved oil and gas properties and other long-lived assets that are written down to fair value when they are impaired or held for sale. The Company did not have any transfers of assets or liabilities between Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the three months ended March 31, 2017 and 2016.

LONG-TERM DEBTS

LONG-TERM DEBTS	3 Months Ended
	Mar. 31, 2017
Long-term Debt, Unclassified [Abstract]
LONG-TERM DEBT	NOTE 7 - LONG-TERM DEBTS March 31 December 31 2017 2016 (In thousands) Term Loan: 6% Senior Secured Term Loan, due 2019, net of deferred financing costs and debt discount $ 35,131 $ 29,214 6% note payable to SOS Investment, LLC, due 2019 1,000 1,000 Other notes payable 23 29 36,154 30,243 Less: current portion (17) (17) $ 36,137 $ 30,226 First Lien Credit Agreement On September 29, 2016, the Company entered into the First Lien Credit Agreement by and among the Company and its wholly owned subsidiaries, Brushy, Impetro Operating and Resources (the “Initial Guarantors”), and the lenders party thereto (each a “Lender” and together, the “Lenders”) and T.R. Winston & Company, LLC (“TRW”) acting as initial collateral agent (the “First Lien Credit Agreement”). The First Lien Credit Agreement provided for a $ 50 31 25 6 31 38.1 In connection with the Company’s entry into the First Lien Credit Agreement, it incurred commitment fees to each of the Lenders equal to 2.0 1.2 1.2 2,850,000 672,000 2.50 0.01 2.0 two In connection with the exercise of the accordion advance feature for $ 7.1 0.4 738,638 0.01 1.0 0.6 0.1 0.2 1.5 3.5 1.2 0.6 The Existing Term Loans bore interest at a rate of 6.0 6.0 The First Lien Credit Agreement also provides for events of default, including failure to pay any principal or interest when due, failure to perform or observe covenants, cross-default on certain outstanding debt obligations, the failure of a Guarantor to comply with the provisions of its Guaranty, and bankruptcy or insolvency events. The amounts under the First Lien Credit Agreement could be accelerated and become due and payable upon an event of default. SOS Investment LLC Note On June 30, 2016, pursuant to the Merger Agreement and as a condition of the Fourth Amendment, the Company was required to make a cash payment of $ 500,000 1 6 June 30, 2019 200,000 25.00 0.2 Interest Expense Interest expense for the three months ended March 31, 2017 and 2016 was approximately $ 0.8 1.3 0.2 0.8

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 - RELATED PARTY TRANSACTIONS March 31, Related Party Transactions 2017 2016 Directors and Officers: Nuno Brandolini (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 $ - $ 150 Total: $ - $ 150 General Merrill McPeak (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 $ - $ 250 Total: $ - $ 250 R. Glenn Dawson (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 $ - $ 50 Total: $ - $ 50 Ronald D Ormand (Executive Chairman) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 through the Bruin Trust (1) $ - $ 1,150 Total: $ - $ 1,150 Abraham Mirman (Chief Executive Officer and Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 through The Bralina Group, LLC (2) $ - $ 1,000 Total: $ - $ 1,000 Brennan Short (Chief Operating Officer) Consulting fees paid to MMZ Consulting, Inc which is owned by Mr. Short. Mr. Short is the sole member of the corporation. $ 203 $ - Total: $ 203 $ - Kevin Nanke (former Chief Financial Officer) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 $ - $ 100 Purchased the DJ Basin properties from the Company through Nanke Energy, LLC 2,000 - Total: $ 2,000 $ 100 (1) An irrevocable trust managed by Jerry Ormand, Mr. Ormand's brother, as trustee and whose beneficiaries are adult children of Ronald Ormand (2) Mr. Mirman has shared voting and dispositive power over the securities held by The Bralina Group, LLC with Susan Mirman.

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
SHAREHOLDERS’ EQUITY	NOTE 9 - SHAREHOLDERS’ EQUITY Conditionally Redeemable 6% Preferred Stock In August 2014, the Company designated 2,000 2,000 6 50 270,000 240,000 Series B 6 On June 15, 2016, the Company entered into a purchase agreement for the private placement of 20,000 9,090,926 2.50 20 Each share of Series B Preferred Stock is convertible, at the option of the holder, subject to adjustment under certain circumstances into shares of Common Stock of the Company at a conversion price of $ 1.10 6 The Series B Preferred Stock is classified as equity based on the following criteria: i) the redemption of the instrument at the control of the Company, ii) the instrument is convertible into a fixed amount of shares at a conversion price of $ 1.10 Shares of the Series B Preferred Stock and related warrants were valued using the relative fair value method. The Company determined the transaction created a beneficial conversion feature of $ 7.9 15.2 1.20 2.50 2 238 0.78 11.0 13.4 As of March 31, 2017, approximately 2,449 0.1 2.3 1.10 0.7 Private Placement On February 28, 2017, the Company entered into a Securities Subscription Agreement (the “Subscription Agreement”) with certain institutional and accredited investors in connection with a private placement the (“March 2017 Private Placement”) to sell 5.2 5.2 2.6 0.50 3.85 4.50 6.30 20.0 5,194,821 2,597,420 Warrants The following table provides a summary of warrant activity for the three months ended March 31, 2017: Weighted- Average Warrants Exercise Price Outstanding at January 1, 2017 15,915,511 $ 3.34 Warrants issued in connection with private placement 2,597,420 4.50 Exercised, forfeited, or expired (1,827,309) (0.01) Outstanding at March 31, 2017 16,685,622 $ 3.37

SHARE BASED AND OTHER COMPENSAT

SHARE BASED AND OTHER COMPENSATION	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE BASED AND OTHER COMPENSATION	NOTE 10 - SHARE BASED AND OTHER COMPENSATION Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 Stock Restricted Stock Restricted Options Stock Total Options Stock Total Stock-based compensation expensed $ 1,776 $ 1,003 $ 2,779 $ 192 $ 49 $ 241 Unrecognized stock-based compensation costs $ 5,114 $ 1,120 $ 6,234 $ 1,707 $ 171 $ 1,878 Weighted average amortization period remaining 1.31 1.08 - 2.93 1.08 - Restricted Stock A summary of restricted stock grant activity pursuant to the 2016 Plan for the three months ended March 31, 2017 is presented below: Weighted Number of Average Grant Shares Date Price Outstanding at January 1, 2017 1,068,305 $ 1.55 Granted 223,750 $ 3.76 Vested and issued (174,250) $ (3.90) Forfeited (1,136) $ (2.93) Outstanding at March 31, 2017 1,116,669 $ 2.95 Restricted Stock Units A summary of restricted stock unit grant activity pursuant to the 2012 Plan for the three months ended March 31, 2017 is presented below. Weighted Number of Average Grant Shares Date Price Outstanding at January 1, 2017 149,584 $ 10.56 Vested and issued (139,585) 16.62 Outstanding at March 31, 2017 $ 9,999 $ 16.50 Stock Options A summary of stock option activity for the three months ended March 31, 2017 is presented below: Stock Options Outstanding and Exercisable Weighted Weighted Number Average Average of Options Remaining Number Exercise Vested/ Contractual Life of Options Price Exercisable (Years) Outstanding at January 1, 2017 5,956,833 $ 2.04 2,208,757 9.68 Granted 825,000 3.51 - - Exercised (170,000) 1.34 - - Forfeited or cancelled (293,333) (2.84) - - Outstanding at March 31, 2017 6,318,500 $ 3.05 2,683,808 9.24 During the three months ended March 31, 2017, options to purchase 825,000 shares of the Company’s common stock were granted under the 2016 Plan. The weighted average fair value of these options of $3.51. The fair values were determined using the Black-Scholes-Merton option valuation method assuming no dividends, a risk-free interest rate of 1.27%, a weighted average expected life of 2 years and weighted-average volatility of 112.10% As of March 31, 2017, total unrecognized compensation costs relating to the outstanding options was approximately $5.1 million, which is expected to be recognized over the remaining vesting period of approximately 1.3 years.

SUPPLEMENTAL NON-CASH TRANSACTI

SUPPLEMENTAL NON-CASH TRANSACTIONS	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL NON-CASH TRANSACTIONS	NOTE 11 - SUPPLEMENTAL NON-CASH TRANSACTIONS (in thousands) 2017 2016 Non-cash investing and financing activities excluded from the statement of cash flows: Conversion of Series B preferred stock and accrued dividends to common stock $ 2,549 $ - Commitment fees offset by issuance of common stock for private placement 250 - Fair value of repriced warrants as debt discount to term loan 1,031 546 Increase in final settlement on the divestiture of DJ Basin properties in accrued liabilities 584 - Cashless exercise of warrants 371 - Change in capital expenditures for drilling costs in accrued liabilities 812 950

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 - COMMITMENTS AND CONTINGENCIES Environmental and Governmental Regulation At March 31, 2017, there were no known environmental or regulatory matters which are reasonably expected to result in a material liability to the Company. Many aspects of the oil and gas industry are extensively regulated by federal, state, and local governments in all areas in which the Company has operations. Regulations govern such things as drilling permits, environmental protection and air emissions/pollution control, spacing of wells, the unitization and pooling of properties, reports concerning operations, land use, and various other matters including taxation. Oil and gas industry legislation and administrative regulations are periodically changed for a variety of political, economic, and other reasons. As of March 31, 2017, the Company had not been fined or cited for any violations of governmental regulations that would have a material adverse effect on the financial condition of the Company. Legal Proceedings The Company may from time to time be involved in various legal actions arising in the normal course of business. In the opinion of management, the Company’s liability, if any, in these pending actions would not have a material adverse effect on the financial position of the Company. The Company’s general and administrative expenses would include amounts incurred to resolve claims made against the Company. The Company believes there is no litigation pending that could have, individually or in the aggregate, a material adverse effect on its results of operations or financial condition.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 13 - SUBSEQUENT EVENTS First Lien Credit Agreement Amendments On April 24, 2017, and subsequently on April 26, 2017, the Company entered into the first and second amendments (together, the “First Lien Amendments”) to our First Lien Credit Agreement, Pursuant to the First Lien Amendments, among other things, certain lenders identified therein joined the Original Lenders as lenders under the First Lien Credit Agreement in connection with further extensions of credit, in addition to the existing loans under the First Lien Credit Agreement (the “Existing Loans”), in the form of bridge loans in an aggregate principal amount of $ 15.0 On April 26, 2017, in connection with the closing of the Second Lien Credit Agreement, the Company paid off the Existing Loans in full including accrued and unpaid interest thereon. The Bridge Loans are secured by first priority liens on substantially all of the Company’s and Guarantors’ assets, including their oil and gas properties located in the Permian Basin, and all of the obligations thereunder are unconditionally guaranteed by each of the Guarantors. The First Lien Credit Agreement, as amended by the First Lien Amendments, provides that the unpaid principal of the Bridge Loans will bear cash interest at a rate per annum of (i) 6% for the first six months after the execution of the Amendment and (ii) thereafter, so long as any Bridge Loan is outstanding, a rate of 10%. Additionally, the unpaid principal of the Bridge Loans 6%, payable only in-kind by increasing the principal amount of the Bridge Loans by the amount of such interest due on each interest payment date The Bridge Loans may be repaid in whole or part at any time at the option of the Company, subject to the payment of certain specified prepayment premiums. The Bridge Loans are subject to mandatory prepayment with the net proceeds of certain asset sales and casualty events, subject to the right of the Company to reinvest the net proceeds of asset sales and casualty events within 180 days. Redemption of Conditionally Redeemable 6% Preferred Stock Effective as of April 24, 2017, the Company has redeemed, in full, the Company’s Redeemable Preferred (as defined above in Note 9). In accordance therewith, the Company and Hexagon, the only holder of the Redeemable Preferred, entered into a Settlement and Release Agreement, dated April 24, 2017 (the “Settlement Agreement”), which sets forth the terms of the redemption. In addition, the Settlement Agreement resolves certain other issues related to liability reimbursements on certain oil and gas properties that had previously been alleged by Hexagon. Accordingly, all prior issues with Hexagon have been resolved and the Redeemable Preferred has been redeemed in full. Series B 6% Convertible Preferred Stock Conversion On April 24, 2017, the Company and all of the holders of its Series B 6 6.0 Pursuant to the terms of the Conversion Agreement, the Company and the Series B Holders have mutually agreed that, immediately upon the effectiveness of the A&R COD, the Series B Holders will be deemed to have automatically converted all remaining shares of Series B Preferred Stock held by them into approximately 14.3 The Conversion Agreement contains customary representations and warranties by the Series B Holders and other agreements and obligations of the parties. Second Lien Credit Agreement On April 26, 2017, the Company entered into a Second Lien Term Loan Credit Agreement (the “Second Lien Credit Agreement”) by and among the Company, the Guarantors, Wilmington Trust, National Association, as administrative agent, and the lenders party thereto (the “Lenders”), including Värde Partners, Inc., a Delaware corporation, as lead lender (the “Lead Lender”), pursuant to which the Lenders agreed to make convertible loans to the Company in an aggregate initial principal amount of up to $ 125 80 45 8.25 The Loans are secured by second priority liens on substantially all of the Company’s and the Guarantors’ assets, including their oil and gas properties located in the Permian Basin, and all of the obligations thereunder are unconditionally guaranteed by each of the Guarantors. The proceeds of the Second Lien Term Loan will be used to (a) repay the Existing Loans including accrued but unpaid interest thereon, (b) pay the fees, expenses and transaction costs of the transactions and (c) finance the Company’s working capital needs, including capital expenditures, and for general corporate purposes, including the exploration, acquisition and development of oil and gas property. The proceeds of the Delayed Draw Loans will be used only to fund acreage leasing activity and/or acreage acquisition. The Loans mature on April 26, 2021 110 The Second Lien Credit Agreement contains certain customary representations and warranties and affirmative and negative covenants, including covenants relating to: the maintenance of books and records, financial reporting and notification, compliance with laws, maintenance of properties and insurance, limitations on incurrence of indebtedness, investments, dividends and other restricted payments, lease obligations, hedging and capital expenditures; and maintenance of a specified asset coverage ratio. The Second Lien Credit Agreement also provides for events of default, including failure to pay any principal or interest when due, failure to perform or observe covenants, cross-default on certain outstanding debt obligations, the failure of a Guarantor to comply with the provisions of its Guaranty, and bankruptcy or insolvency events, subject to certain specified cure periods. The amounts under the Second Lien Credit Agreement could be accelerated and become due and payable upon an event of default. Each tranche of the Loans is separately convertible at any time, in full and not in part, at the option of the Lead Lender, as follows: ⋅ 70% of the principal amount of each tranche of Loans, together with accrued and unpaid interest and the make-whole premium on such principal amount, will convert into a number of newly issued shares of common stock determined by dividing the total of such principal amount, accrued and unpaid interest and make-whole premium by $5.50 (subject to adjustment as described below, the “Conversion Price”); and ⋅ 30% of the principal amount of each tranche of Loans, together with accrued and unpaid interest and the make-whole premium on such principal amount, will convert on a dollar for dollar basis into a new term loan (the “Take Back Loans”). The terms of the Take Back Loans will be substantially the same as the terms of the Loans, except that the Take Back Loans will not be convertible and will bear interest at a rate of LIBOR plus 9% (subject to a 1% LIBOR floor). Additionally, the Company will have the option to convert the Loans, in whole or in part, into shares of common stock at any time or from time to time if, at the time of exercise of its conversion option, the closing price of the common stock on the principal exchange on which it is traded has been at least 150 The Conversion Price will be subject to proportionate adjustment in connection with stock splits and combinations, dividends paid in stock and similar events affecting the outstanding common stock. Additionally, the Conversion Price will be adjusted, based on a broad-based weighted average formula, if we issue, or are deemed to issue, additional shares of common stock for consideration less than the Conversion Price in effect, subject to certain exceptions. However, unless the Shareholder Approval (as defined below) has been obtained, these “price protection” anti-dilution adjustments cannot reduce the Conversion Price to a price less than (a) in the case of the Conversion Price for the Second Lien Term Loan, $ 4.26 Prior to obtaining Shareholder Approval, the number of shares of common stock issuable to any Lender upon conversion of Loans will be capped at a number of shares that would not result in that Lender, together with its affiliates and the other members of any “group” (as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934) including such Lender, owning in excess of 19.999 If the Share Cap applies to any Lender on any conversion of Loans, instead of issuing shares of common stock in excess of the Share Cap, the Company will be required to issue to the Lender affected by the Share Cap shares of a newly created series of preferred stock of the Company to be established if required pursuant to the terms of the Second Lien Credit Agreement (the “Lender Preferred Stock”). Holders of shares of Lender Preferred Stock, if any are issued: ⋅ will have no voting rights, except for certain limited matters related to modification of the terms of the Lender Preferred Stock and similar matters or as otherwise required by Nevada corporate law; ⋅ will not be entitled to receive any preferential dividends but will participate, on as-converted basis, in any dividends declared and paid on the Common Stock; and ⋅ upon liquidation, dissolution or winding up of the Company, will be entitled to receive, in preference to holders of Common Stock, an amount equal to the greater of $0.01 and the amount the holders of shares of Lender Preferred Stock would receive with respect to each share of Common Stock issuable on conversion of the Lender Preferred Stock in connection with such liquidation, dissolution or winding up if all shares of Lender Preferred Stock were converted into Common Stock immediately before such event. The shares of Lender Preferred Stock issued to any Lender as a result of the Share Cap will be convertible into the number of shares of common stock that were not issued to the Lender as a result of the Share Cap, but such conversion would be permitted or be mandatory only (i) after the Shareholder Approval is obtained, (ii) if such conversion would not result in the holder of the Lender Preferred Stock so converted, together with its affiliates and other members of any “group” including such holder, owning in excess of 19.999% of the outstanding shares of common stock or voting power of the Company on the date of conversion, after giving effect to the conversion, or (iii) in connection with a Change of Control Transaction (as such term will be defined in the certificate of designations creating the Lender Preferred Stock). The Second Lien Credit Agreement requires the Company to submit to its shareholders for their approval (the “Shareholder Approval”) the following matters as promptly as practicable after April 26, 2017: ⋅ the issuance of shares of Common Stock upon conversion of the Loans or any Lender Preferred Stock at a conversion price that is less than the Conversion Price Floor if the Conversion Price were reduced to a price less than the Conversion Price Floor as a result of the anti-dilution adjustments described above; and ⋅ any change of control (as defined in applicable stock exchange listing rules) that might occur as a result of the conversion of the Loans or any Lender Preferred Stock. If the Shareholder Approval is obtained, the Conversion Price Floor and the Share Cap will no longer apply. The Second Lien Credit Agreement provides that the Lead Lender is entitled to appoint one observer to the Board of Directors of the Company during the period prior to the conversion of the Second Lien Term Loan. The board observer is not entitled to vote on any matter and is entitled to participate only in meetings of the full Board of Directors and not any of its committees (other than any “executive” or similar committee) and to receive materials distributed to all members of the Board of Directors. The board observer may be excluded from board meetings and distributions of board materials if the Board of Directors determines in good faith that (i) such exclusion is necessary to preserve any privilege or (ii) the subject matter thereof involves an actual or potential conflict of interest with respect to the board observer or any of its affiliates. The right to appoint the board observer will terminate upon conversion of the Second Lien Term Loan. Following the conversion of the Second Lien Term Loan, the Lenders, collectively, will have the right to appoint two members of the Board of Directors as long as they continue to own at least 20% of the outstanding common stock and one member of the Board of Directors as long as they continue to own at least 12.5% (but less than 20%) of the outstanding common stock. Registration Rights Agreement In connection with the execution of Second Lien Credit Agreement and funding of the Second Lien Term Loan, the Company and the Lenders entered into a Registration Rights Agreement dated as of April 26, 2017 (the “Registration Rights Agreement”) pursuant to which the Company will be required to file with the Securities and Exchange Commission a registration statement under the Securities Act of 1933 registering for resale the shares of common stock issuable upon conversion of the Loans or any shares of Lender Preferred Stock issued. The Registration Rights Agreement contains customary covenants and indemnification and contribution provisions.

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. As of March 31, 2017, the Company’s wholly owned subsidiaries include Brushy Resources, Inc (“Brushy”), ImPetro Operating, LLC (“ImPetro Operating”), ImPetro Resources, LLC (“Resources”), and Lilis Operating Company, LLC (“Lilis Operating”). All significant intercompany accounts and transactions have been eliminated in consolidation.
Interim Financial Statements	Interim Financial Statements The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The Company’s accounting policies are described in the Notes to Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2016, and updated, as necessary, in this Quarterly Report on Form 10-Q.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. Although actual results may differ from these estimates under different assumptions or conditions, the Company believes that its estimates are reasonable. The most significant financial estimates are associated with the Company’s estimated volumes of proved oil and natural gas reserves, asset retirement obligations, assessments of impairment on oil and gas properties, fair value of financial instruments, including derivative liabilities and conditionally redeemable preferred stock, depreciation and accretion, income taxes and contingencies.
Reclassifications	Reclassifications Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications have no effect on the Company’s previously reported results of operations. For the three months ended March 31, 2016, change in fair value on executive bonus of approximately $ 222,000
Oil and Gas Properties	The Company follows the full cost method of accounting for oil and gas operations whereby all costs related to the exploration, non-production related development and acquisition of oil and natural gas reserves are capitalized. Such costs include land acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling, developing and completing productive wells and/or plugging and abandoning non-productive wells, and any other costs directly related to acquisition and exploration activities. Proceeds from property sales are generally applied as a credit against capitalized exploration and development costs, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more Depletion of exploration and development costs and depreciation of wells and tangible production assets is computed using the units-of-production method based upon estimated proved oil and gas reserves. Costs included in the depletion base to be amortized include (a) all proved capitalized costs including capitalized asset retirement costs net of estimated salvage values, less accumulated depletion, (b) estimated future development costs to be incurred in developing proved reserves; and (c) estimated decommissioning and abandonment/restoration costs, net of estimated salvage values, that are not otherwise included in capitalized costs. The costs of undeveloped acreage are withheld from the depletion base until it is determined whether or not proved reserves can be assigned to the properties. When proved reserves are assigned to such properties or one or more specific properties are deemed to be impaired, the cost of such properties or the amount of the impairment is added to the full cost pool which is subject to depletion calculations. Under the full cost method of accounting, capitalized oil and gas property costs less accumulated depletion and net of deferred income taxes may not exceed an amount equal to the sum of the present value, discounted at 10 The present value of estimated future net cash flows was computed by applying a flat oil price to forecast revenues from estimated future production of proved oil and gas reserves as of period-end, less estimated future expenditures to be incurred in developing and producing the proved reserves (assuming the continuation of existing economic conditions), less any applicable future taxes. The flat oil price is the first-day-of-the-month price as defined by the SEC in Rule 4-10 of Regulation S-X which includes the 12-month average of first-day-of-the-month prices from various indices. The flat oil price is adjusted to match up with accounting data through the use of a differential.
Accrued Liabilities	Accrued Liabilities As of March 31, 2017 and December 31, 2016, the Company’s accrued liabilities consisted of the following: March 31, December 31, 2017 2016 Accrued bonus $ 894 $ - Accrued financing costs 659 - Accrued drilling costs 1,763 1,331 Accrued revenue 2,433 1,313 Accrued costs related to divestiture of DJ Basin properties 584 - Accrued payroll tax withholding 237 - Other accrued liabilities 435 62 $ 7,005 $ 2,706
Asset Retirement Obligations	Asset Retirement Obligations The Company incurs retirement obligations for certain assets at the time they are placed in service. The fair values of these obligations are recorded as liabilities on a discounted basis. The costs associated with these liabilities are capitalized as part of the related assets and depreciated. Over time, the liabilities are accreted for the change in their present value. For purposes of depletion calculations, the Company includes estimated dismantlement and abandonment cost, net of salvage values, associated with future development activities that have not yet been capitalized as asset retirement obligations. Asset retirement obligations incurred are classified as Level 3 (unobservable inputs) fair value measurements. The asset retirement liability is allocated to operating expense using a systematic and rational method. The Company has accreted approximately $ 22,000 3,000
Revenue Recognition	The Company recognizes revenue when it is realized or realizable and earned. Revenues are considered realized or realizable and earned when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the seller's price to the buyer is fixed or determinable and (iv) collectability is reasonably assured. The Company uses the entitlements method of accounting for oil, natural gas and natural gas liquid (NGL) revenues. Should sales proceeds be in excess of the Company's entitlement, these amounts will be included in accrued liabilities and the Company's share of sales taken by others will be included in other assets in the accompanying consolidated balance sheets. The Company had no material oil, natural gas or NGL entitlement assets or liabilities as of March 31, 2017 and December 31, 2016. All revenue proceeds relating to third-party royalty owners not remitted by the end of a reporting period are accounted for in accrued revenue. As of March 31, 2017 and December 31, 2016, the Company had approximately $ 2.4 1.3
Major customers	Major Customers Three Months Ended March 31, 2017 2016 Texican Natural Gas Company 77 % - % Energy Transfer Partners, L.P. 16 % - % Shell Trading (US) Company 2 % 32 % Peterson Energy Operating - % 30 % PDC Energy, Inc. - % 38 % Others below 10% 5 % - % 100 % 100 %
Impairment of Long-lived Assets	Impairment of Long-lived Assets The Company accounts for long-lived assets (other than oil and gas properties) at cost. Other long-lived assets consist principally of property and equipment and identifiable intangible assets with finite useful lives (subject to amortization, depletion, and depreciation). The Company may impair these assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. Recoverability is measured by comparing the carrying amount of an asset to the expected undiscounted future net cash flows generated by the asset. If it is determined that the asset may not be recoverable, and if the carrying amount of an asset exceeds its estimated fair value, an impairment charge is recognized to the extent of the difference.
Loss Per Share	Loss Per Share Basic loss per share was calculated by dividing loss applicable to common shares by the weighted average number of common shares outstanding during the periods presented. The weighted average common shares outstanding include issued and outstanding shares of common stock and shares issuable for little or no consideration. The Company has included 3,738,639 3,522,735 March 31, December 31, 2017 2016 Stock Options 6,318,500 5,956,833 Restricted Stock Units 9,999 149,584 Restricted Stock 1,116,669 1,068,305 Series B Preferred Stock 13,071,818 15,454,545 Stock Purchase Warrants, excluding warrants exercisable for $0.01 per share 12,946,986 12,392,776 33,463,972 35,022,043
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”). The ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on its consolidated financial position and/or results of operations. On February 22, 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-05, “ Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”, In January 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business”, The FASB issued ASU 2016-18, “Restricted Cash (Topic 230),” In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” The FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In March 2016, the FASB issued ASU No. 2016-06, “ Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments” On August 26, 2016, the FASB issued ASU No. 2016-15, “ Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)”,

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Schedule of Accrued Liabilities	As of March 31, 2017 and December 31, 2016, the Company’s accrued liabilities consisted of the following: March 31, December 31, 2017 2016 Accrued bonus $ 894 $ - Accrued financing costs 659 - Accrued drilling costs 1,763 1,331 Accrued revenue 2,433 1,313 Accrued costs related to divestiture of DJ Basin properties 584 - Accrued payroll tax withholding 237 - Other accrued liabilities 435 62 $ 7,005 $ 2,706
Schedules of Concentration of Risk, by Risk Factor	During the three months ended March 31, 2017 and 2016, the Company’s major customers consisted as a percentage of the following: Three Months Ended March 31, 2017 2016 Texican Natural Gas Company 77 % - % Energy Transfer Partners, L.P. 16 % - % Shell Trading (US) Company 2 % 32 % Peterson Energy Operating - % 30 % PDC Energy, Inc. - % 38 % Others below 10% 5 % - % 100 % 100 %
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The Company had the following shares of Common Stock equivalents at March 31, 2017 and December 31, 2016: March 31, December 31, 2017 2016 Stock Options 6,318,500 5,956,833 Restricted Stock Units 9,999 149,584 Restricted Stock 1,116,669 1,068,305 Series B Preferred Stock 13,071,818 15,454,545 Stock Purchase Warrants, excluding warrants exercisable for $0.01 per share 12,946,986 12,392,776 33,463,972 35,022,043

OIL AND GAS PROPERTIES & OIL 21

OIL AND GAS PROPERTIES & OIL AND GAS PROPERTY ACQUISITIONS AND DIVESTITURES (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization	March 31, December 31, 2017 2016 (In thousands) Unproved unevaluated acreage: Beginning Balance $ 24,461 $ - Lease purchases 2,715 546 Assets acquired - 23,915 Total unproved acreage $ 27,176 $ 24,461 Wells in progress: Beginning Balance $ 7,453 $ - Additions 2,834 7,453 Reclassification to evaluated properties (7,410) - Total wells in progress and not subject to DD&A $ 2,877 $ 7,453

MERGER WITH BRUSHY RESOURCES,22

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table sets forth the Company’s purchase price allocation (in thousands, except share data and stock price): Shares of Lilis Common Stock issued to Brushy shareholders 5,785,119 Lilis Common Stock closing price on June 23, 2016 $ 1.20 Fair value of Common Stock issued $ 6,942 Cash consideration paid to SOS 500 SOS Note 1,000 Fair value of SOS warrant 170 Warrant liability - repricing derivative 164 Advance to Brushy pre-merger 2,508 Total purchase price 11,284 Plus: liabilities assumed by Lilis Current Liabilities Account payable and accrued expenses $ 5,447 Term loan - Independent Bank 11,379 16,826 Long-Term Debt 19 Asset Retirement Obligation 777 Amount attributable to liabilities assumed 17,622 $ 28,906 Fair Value of Brushy Assets Current Assets: Cash $ 706 Other current assets 624 $ 1,330 Oil and Gas Properties: Proved properties 7,512 Unproved properties 19,662 27,174 Other assets Other Property Plant & Equipment 42 Other assets 360 402 Total Asset Value $ 28,906
Business Acquisition, Pro Forma Information	March 31, 2016 (In thousands, except share data) Revenue $ 822 Net loss $ (5,479) Net loss attributable to common stockholders $ (5,479) Net loss per common share basic and diluted $ (0.18) Weighted average shares outstanding: Basic and diluted 30,606,552

FAIR VALUE OF FINANCIAL INSTR23

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Text Block [Abstract]
Summary of recurring fair values of assets and liabilities measured at fair value	The following table provides a summary of the recurring fair values of assets and liabilities measured at fair value (in thousands) March 31, 2017 Level 1 Level 2 Level 3 Total Recurring fair value measurements: Warrant liabilities - - (683) (683) Total recurring fair value measurements $ - $ - $ (683) $ (683) December 31, 2016 Level 1 Level 2 Level 3 Total Recurring fair value measurements: Warrant liabilities - - (1,400) (1,400) Total recurring fair value measurements $ - $ - $ (1,400) $ (1,400)
Summary of changes in fair value of Level 3 financial assets and liabilities	The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets and liabilities during the three months ended March 31, 2017 and 2016 (in thousands) : Bristol/ Heartland/SOS warrant liability Total Balance at January 1, 2017 $ (1,400) $ (1,400) Cashless exercise of warrant (1) 371 371 Change in fair value of liability 346 346 Balance at March 31, 2017 $ (683) $ (683) (1) On March 14, 2017, the Company issued 77,131 0.8 0.4 0.4 Convertible Debenture Bristol/ derivative Heartland/SOS Incentive liability warrant liability bonus Total Balance at January 1, 2016 $ (6) $ (56) $ (223) $ (285) Reversal of accrued bonus - - 223 223 Change in fair value of liability (49) (19) - (68) Balance at March 31, 2016 $ (55) $ (75) $ - $ (130)

LONG-TERM DEBTS (Tables)

LONG-TERM DEBTS (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of long-term debt instruments	March 31 December 31 2017 2016 (In thousands) Term Loan: 6% Senior Secured Term Loan, due 2019, net of deferred financing costs and debt discount $ 35,131 $ 29,214 6% note payable to SOS Investment, LLC, due 2019 1,000 1,000 Other notes payable 23 29 36,154 30,243 Less: current portion (17) (17) $ 36,137 $ 30,226

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	During the three months ended March 31, 2017 and 2016, the Company was engaged in the following transactions with related party: March 31, Related Party Transactions 2017 2016 Directors and Officers: Nuno Brandolini (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 $ - $ 150 Total: $ - $ 150 General Merrill McPeak (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 $ - $ 250 Total: $ - $ 250 R. Glenn Dawson (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 $ - $ 50 Total: $ - $ 50 Ronald D Ormand (Executive Chairman) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 through the Bruin Trust (1) $ - $ 1,150 Total: $ - $ 1,150 Abraham Mirman (Chief Executive Officer and Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 through The Bralina Group, LLC (2) $ - $ 1,000 Total: $ - $ 1,000 Brennan Short (Chief Operating Officer) Consulting fees paid to MMZ Consulting, Inc which is owned by Mr. Short. Mr. Short is the sole member of the corporation. $ 203 $ - Total: $ 203 $ - Kevin Nanke (former Chief Financial Officer) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 $ - $ 100 Purchased the DJ Basin properties from the Company through Nanke Energy, LLC 2,000 - Total: $ 2,000 $ 100 (1) An irrevocable trust managed by Jerry Ormand, Mr. Ormand's brother, as trustee and whose beneficiaries are adult children of Ronald Ormand (2) Mr. Mirman has shared voting and dispositive power over the securities held by The Bralina Group, LLC with Susan Mirman.

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Summary of warrant activity	Weighted- Average Warrants Exercise Price Outstanding at January 1, 2017 15,915,511 $ 3.34 Warrants issued in connection with private placement 2,597,420 4.50 Exercised, forfeited, or expired (1,827,309) (0.01) Outstanding at March 31, 2017 16,685,622 $ 3.37

SHARE BASED AND OTHER COMPENS27

SHARE BASED AND OTHER COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Activity	The Company’s stock-based compensation consisted of the following: Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 Stock Restricted Stock Restricted Options Stock Total Options Stock Total Stock-based compensation expensed $ 1,776 $ 1,003 $ 2,779 $ 192 $ 49 $ 241 Unrecognized stock-based compensation costs $ 5,114 $ 1,120 $ 6,234 $ 1,707 $ 171 $ 1,878 Weighted average amortization period remaining 1.31 1.08 - 2.93 1.08 -
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	Weighted Number of Average Grant Shares Date Price Outstanding at January 1, 2017 1,068,305 $ 1.55 Granted 223,750 $ 3.76 Vested and issued (174,250) $ (3.90) Forfeited (1,136) $ (2.93) Outstanding at March 31, 2017 1,116,669 $ 2.95 Restricted Stock Units A summary of restricted stock unit grant activity pursuant to the 2012 Plan for the three months ended March 31, 2017 is presented below. Weighted Number of Average Grant Shares Date Price Outstanding at January 1, 2017 149,584 $ 10.56 Vested and issued (139,585) 16.62 Outstanding at March 31, 2017 $ 9,999 $ 16.50
Schedule of Share-based Compensation, Stock Options, Activity	Stock Options Outstanding and Exercisable Weighted Weighted Number Average Average of Options Remaining Number Exercise Vested/ Contractual Life of Options Price Exercisable (Years) Outstanding at January 1, 2017 5,956,833 $ 2.04 2,208,757 9.68 Granted 825,000 3.51 - - Exercised (170,000) 1.34 - - Forfeited or cancelled (293,333) (2.84) - - Outstanding at March 31, 2017 6,318,500 $ 3.05 2,683,808 9.24

SUPPLEMENTAL NON-CASH TRANSAC28

SUPPLEMENTAL NON-CASH TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The following table presents information about supplemental cash flows for the three months ended March 31, 2017 and 2016 (in thousands) 2017 2016 Non-cash investing and financing activities excluded from the statement of cash flows: Conversion of Series B preferred stock and accrued dividends to common stock $ 2,549 $ - Commitment fees offset by issuance of common stock for private placement 250 - Fair value of repriced warrants as debt discount to term loan 1,031 546 Increase in final settlement on the divestiture of DJ Basin properties in accrued liabilities 584 - Cashless exercise of warrants 371 - Change in capital expenditures for drilling costs in accrued liabilities 812 950

ORGANIZATION (Details Textual)

ORGANIZATION (Details Textual)	1 Months Ended
	Jun. 23, 2016
Real Estate Properties [Line Items]
Stockholders' Equity, Reverse Stock Split	1-for-10 reverse stock split

MANAGEMENT PLANS AND LIQUIDITY

MANAGEMENT PLANS AND LIQUIDITY (Details Textual) - USD ($)	Feb. 07, 2017	Sep. 29, 2016	Mar. 31, 2017	Mar. 31, 2016	Apr. 26, 2017	Apr. 24, 2017
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items]
Cash			$ 20,400,000
Additional Proceeds From Issuance Of Secured Debt		$ 0	0
Working Capital			15,200,000
Proceeds from Notes Payable			56,600,000
Repayments of Notes Payable			$ 4,000	$ 0
Senior Debt Obligations [Member] | First Lien Credit Agreement [Member]
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items]
Proceeds from Issuance of Secured Debt		31,000,000
Line of Credit Facility, Maximum Borrowing Capacity		$ 50,000,000
Minimum [Member] | Senior Debt Obligations [Member] | First Lien Credit Agreement [Member]
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items]
Proceeds from Issuance of Secured Debt	$ 31,000,000
Maximum [Member] | Senior Debt Obligations [Member] | First Lien Credit Agreement [Member]
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items]
Proceeds from Issuance of Secured Debt	$ 38,100,000
Subsequent Event [Member] | First Lien Credit Agreement [Member]
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity						$ 15,000,000
Subsequent Event [Member] | Second Lien Credit Agreement [Member]
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 125,000,000
Line of Credit Facility, Current Borrowing Capacity					80,000,000
Line of Credit Facility, Remaining Borrowing Capacity					$ 45,000,000

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accrued bonus	$ 894	$ 0
Accrued financing costs	659	0
Accrued drilling costs	1,763	1,331
Accrued revenue	2,433	1,313
Accrued costs related to divestiture of DJ Basin properties	584	0
Accrued payroll tax withholding	237	0
Other accrued liabilities	435	62
Total accrued expenses	$ 7,005	$ 2,706

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Details 1)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%
Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	100.00%	100.00%
Sales Revenue, Net [Member] | Texican [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	77.00%	0.00%
Sales Revenue, Net [Member] | Energy Transfer Inc. [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	16.00%	0.00%
Sales Revenue, Net [Member] | Shell Trading Us [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	2.00%	32.00%
Sales Revenue, Net [Member] | Peterson Energy [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%	30.00%
Sales Revenue, Net [Member] | Pdc Energy [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%	38.00%
Sales Revenue, Net [Member] | Others [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	5.00%	0.00%

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Details 2) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	33,463,972	35,022,043
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,318,500	5,956,833
Restricted Stock Units (employees/directors) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	9,999	149,584
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,116,669	1,068,305
Stock Purchase Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	12,946,986	12,392,776
Series B Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	13,071,818	15,454,545

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Summary Of Significant Accounting Policies [Line Items]
Percentage of Amount Amortized of Ending Present Value of Future Insurance Profits, Year One	10.00%
Results of Operations, Impairment of Oil and Gas Properties		$ 0
Accretion of asset retirement obligations	$ 22,000	3,000
Description Of Sale Reserves	25% or more
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	33,463,972		35,022,043
Concentration Risk, Percentage	0.00%
Debt Issuance Costs, Net	$ 0		$ 1,800,000
Deferred Revenue, Current	$ 2,400,000		$ 1,300,000
Change In Fair Value On Executive Bonus		$ 222,000
Warrant [Member]
Summary Of Significant Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,738,639		3,522,735
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount	$ 0.01		$ 0.01

OIL AND GAS PROPERTIES & OIL 35

OIL AND GAS PROPERTIES & OIL AND GAS PROPERTY ACQUISITIONS AND DIVESTITURES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Unproved unevaluated acreage:
Beginning Balance	$ 24,461	$ 0
Lease purchases	2,715	546
Assets acquired	0	23,915
Total unproved acreage	27,176	24,461
Wells in progress:
Beginning Balance	7,453	0
Additions	2,834	7,453
Reclassification to evaluated properties	(7,410)	0
Total wells in progress and not subject to DD&A	$ 2,877	$ 7,453

OIL AND GAS PROPERTIES & OIL 36

OIL AND GAS PROPERTIES & OIL AND GAS PROPERTY ACQUISITIONS AND DIVESTITURES (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items]
Depreciation, Depletion and Amortization	$ 1,124	$ 20
Proceeds from Sale of Oil and Gas Property and Equipment	1,080
Net Sale Adjustment Amount Due To Purchaser	220
Disposal Of Oil And Gas Property And Equipment, Consideration	2,000
Severance Costs	$ 700

MERGER WITH BRUSHY RESOURCES,37

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS (Details) $ / shares in Units, $ in Thousands	1 Months Ended
	Jun. 23, 2016USD ($)$ / sharesshares
Current Liabilities
Account payable and accrued expenses	$ 6,200
Brushy Resources, Inc [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Shares of Lilis Common Stock issued to Brushy shareholders | shares	5,785,119
Lilis Common Stock closing price on June 23, 2016 | $ / shares	$ 1.2
Fair value of Common Stock issued	$ 6,942
Cash consideration paid to SOS	500
SOS Note	1,000
Fair value of SOS warrant	170
Warrant liability - repricing derivative	164
Advance to Brushy pre-merger	2,508
Total purchase price	11,284
Current Liabilities
Account payable and accrued expenses	5,447
Term loan - Independent Bank	11,379
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	16,826
Long-Term Debt	19
Asset Retirement Obligation	777
Amount attributable to liabilities assumed	17,622
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	28,906
Current Assets:
Cash	706
Other current assets	624
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	1,330
Oil and Gas Properties:
Proved properties	7,512
Unproved properties	19,662
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	27,174
Other assets
Other Property Plant & Equipment	42
Other assets	360
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	402
Total Asset Value	$ 28,906

MERGER WITH BRUSHY RESOURCES,38

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Net loss per common share basic and diluted	$ (0.32)	$ (0.12)
Weighted average shares outstanding: Basic and diluted	27,847,651	29,152,369
Brushy Resources, Inc [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Revenue		$ 822
Net loss		(5,479)
Net loss attributable to common stockholders		$ (5,479)
Net loss per common share basic and diluted		$ (0.18)
Weighted average shares outstanding: Basic and diluted		30,606,552

MERGER WITH BRUSHY RESOURCES,39

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS (Details Textual)	1 Months Ended
	Jun. 23, 2016USD ($)shares
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	$ 6,200,000
SOSV Investments, LLC [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Repayments of Debt	500,000
Subordinated Unsecured Promissory Note [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Debt Instrument, Face Amount	$ 1,000,000
SOS Warrant [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	200,000
Brushy Resources, Inc [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	5,785,119
Common Stock, Shares Ratio	0.4550916
Debt Instrument, Face Amount	$ 6,000,000
Noncash Merger Related Costs	3,220,000
Investment Advisory Fees	3,050,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	5,447,000
Brushy Resources, Inc [Member] | SOS Warrant [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Debt Discount, Warrants Issued	170,000
Brushy Resources, Inc [Member] | Independent Bank [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Debt Conversion, Original Debt, Amount	$ 11,400,000

FAIR VALUE OF FINANCIAL INSTR40

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Warrant liabilities	$ (683)	$ (1,400)
Total recurring fair value measurements	(683)	(1,400)
Fair Value, Inputs, Level 1 [Member]
Warrant liabilities	0	0
Total recurring fair value measurements	0	0
Fair Value, Inputs, Level 2 [Member]
Warrant liabilities	0	0
Total recurring fair value measurements	0	0
Fair Value, Inputs, Level 3 [Member]
Warrant liabilities	(683)	(1,400)
Total recurring fair value measurements	$ (683)	$ (1,400)

FAIR VALUE OF FINANCIAL INSTR41

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning		$ (1,400)	$ (285)
Reversal of accrued bonus			223
Cashless exercise of warrant	[1]	371
Change in fair value of liability			(68)
Change in fair value of liability		346
Balance, Ending		(683)	(130)
Conversion Derivative Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning			(6)
Reversal of accrued bonus			0
Change in fair value of liability			(49)
Balance, Ending			(55)
Bristol/Heartland/SOS warrant liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning		(1,400)	(56)
Reversal of accrued bonus			0
Cashless exercise of warrant	[1]	371
Change in fair value of liability			(19)
Change in fair value of liability		346
Balance, Ending		$ (683)	(75)
Incentive Bonus [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning			(223)
Reversal of accrued bonus			223
Change in fair value of liability			0
Balance, Ending			$ 0
[1]	On March 14, 2017, the Company issued 77,131 shares of its common stock to Bristol Capital, LLC (“Bristol”) for a cashless exercise of the warrant. The Bristol warrant was also revalued on March 14, 2017 resulting in the Company incurring a change in fair value of $0.8 million for the three months ended March 31, 2017 and decreasing the Bristol derivative liability to $0.4 million. As a result of the cashless exercise, the Company reclassified the $0.4 million of Bristol derivative liability to additional paid-in capital as of March 31, 2017.

FAIR VALUE OF FINANCIAL INSTR42

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Textual) - USD ($) $ in Millions	Mar. 14, 2017	Aug. 31, 2014	Mar. 31, 2017	Mar. 31, 2016
Fair Value Of Financial Instruments Textual [Abstract]
Impairment of Oil and Gas Properties			$ 0
Bristol Capital, Llc [Member]
Fair Value Of Financial Instruments Textual [Abstract]
Shares Issued, Cashless Warrant Exercise	77,131
Fair Value Adjustment of Warrants			0.8
Increase (Decrease) in Derivative Liabilities			0.4
Derivative Liability			$ 0.4
Redeemable Preferred Stock [Member]
Fair Value Of Financial Instruments Textual [Abstract]
Preferred Stock, Dividend Rate, Percentage		6.00%	6.00%	6.00%

LONG-TERM DEBTS (Details)

LONG-TERM DEBTS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Long-term Debt	$ 36,154	$ 30,243
Less: current portion	(17)	(17)
Long-term Debt, Excluding Current Maturities	36,137	30,226
Term Loan [Member] | Senior Secured Term Loan One [Member]
Long-term Debt	35,131	29,214
Term Loan [Member] | SOS Note [Member]
Long-term Debt	1,000	1,000
Convertible Debenture [Member] | Notes Payable, Other Payables [Member]
Long-term Debt	$ 23	$ 29

LONG-TERM DEBTS (Details Textua

LONG-TERM DEBTS (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended	12 Months Ended
	Sep. 30, 2016	Sep. 29, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Dec. 31, 2016	Feb. 07, 2017	Dec. 31, 2015
Amortization of Debt Discount (Premium)			$ 115,000	$ 794,000		$ 200,000
Non Cash Interest Expense			200,000	800,000
Amortization of Deferred Charges			0	0
Interest Expense			800,000	1,300,000
Additional Proceeds From Issuance Of Secured Debt		$ 0	0
Accretion Expense			0	0
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net			$ 0	$ 0		$ 1,200,000		$ 600,000
Warrant [Member]
Expected term						2 years
SOSV Investment LLC [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 25
Warrants Issued			200,000
Credit Agreement [Member] | Maximum [Member] | Term Loan [Member]
Loans Payable							$ 38,100,000
Credit Agreement [Member] | Minimum [Member] | Term Loan [Member]
Loans Payable							$ 31,000,000
Convertible Debenture [Member]
Mortgage Loans on Real Estate, New Mortgage Loans			$ 0
SOS Note [Member] | Term Loan [Member]
Debt Instrument, Face Amount					$ 1,000,000
Debt Instrument, Interest Rate, Stated Percentage					6.00%
Debt Instrument, Maturity Date Range, Start					Jun. 30, 2019
Long-term Debt, Gross					$ 500,000
Credit and Guarantee Agreement [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 0.01
Amortization of Deferred Charges			$ 100,000
Debt Instrument, Interest Rate, Stated Percentage			6.00%
Commitment Fee On Initial Loan Advance, Percentage						2.00%
Prepayment Of Debt Premium, Percentage			6.00%
Additional Proceeds From Issuance Of Secured Debt			$ 7,100,000
Accretion Expense			200,000
Debt Instrument, Unamortized Discount			3,500,000			$ 600,000
Additional Commitment Fee On Initial Loan Advance percentage						2
Unamortized Debt Issuance Expense			1,500,000
Line of Credit Facility, Commitment Fee Amount			$ 400,000
Repurchse Of Warrants,Debt Instrument Unamortized Discount	$ 1,000,000
Credit and Guarantee Agreement [Member] | Series B Purchase Agreement [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			738,638
Deferred Costs						$ 1,200,000
Credit and Guarantee Agreement [Member] | Series B Purchase Agreement [Member] | Maximum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 2.50
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						2,850,000
Credit and Guarantee Agreement [Member] | Series B Purchase Agreement [Member] | Minimum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 0.01
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						672,000
Senior Debt Obligations [Member] | Credit and Guarantee Agreement [Member]
Debt Instrument, Face Amount		50,000,000
Proceeds from Issuance of Secured Debt		$ 31,000,000
Additional Proceeds From Issuance Of Secured Debt	$ 25,000,000					$ 6,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Related Party Transaction [Line Items]
Proceeds from Issuance of Private Placement		$ 17,854	$ 0
R. Glenn Dawson [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Private Placement		0	50
Proceeds from (Repayments of) Related Party Debt		0	50
Brennan Short [Member]
Related Party Transaction [Line Items]
Payment for Consulting Fees		203	0
Proceeds from (Repayments of) Related Party Debt		203	0
Nuno Brandolini [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Private Placement		0	150
Proceeds from (Repayments of) Related Party Debt		0	150
General Merrill McPeak [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Private Placement		0	250
Proceeds from (Repayments of) Related Party Debt		0	250
Ronald D Ormand [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Private Placement	[1]	0	1,150
Proceeds from (Repayments of) Related Party Debt		0	1,150
Abraham Mirman [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Private Placement	[2]	0	1,000
Proceeds from (Repayments of) Related Party Debt		0	1,000
Kevin Nanke [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Private Placement		0	100
Purchase of Properties From Related Parties		2,000	0
Proceeds from (Repayments of) Related Party Debt		$ 2,000	$ 100
[1]	An irrevocable trust managed by Jerry Ormand, Mr. Ormand's brother, as trustee and whose beneficiaries are adult children of Ronald Ormand
[2]	Mr. Mirman has shared voting and dispositive power over the securities held by The Bralina Group, LLC with Susan Mirman.

SHAREHOLDERS_ EQUITY (Details)

SHAREHOLDERS’ EQUITY (Details) - Warrant [Member]	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Begining | shares	15,915,511
Warrants issued to SOS in connection with the Merger | shares	2,597,420
Exercised, forfeited or expired | shares	(1,827,309)
Outstanding Ending | shares	16,685,622
Weighted Average Exercise Price, Outstanding Begining | $ / shares	$ 3.34
Weighted Average Exercise Price, Warrants issued to SOS in connection with the Merger | $ / shares	4.50
Weighted Average Exercise Price, Exercised, forfeited or expired | $ / shares	(0.01)
Weighted Average Exercise Price, Outstanding Ending | $ / shares	$ 3.37

SHAREHOLDERS_ EQUITY (Details T

SHAREHOLDERS’ EQUITY (Details Textual) - USD ($)	1 Months Ended			3 Months Ended		12 Months Ended
	Feb. 28, 2017	Jun. 15, 2016	Aug. 31, 2014	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Issuance of Private Placement				$ 17,854,000	$ 0
Redeemable Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred Stock, Shares Issued			2,000
Preferred Stock, Conversion Basis				The Redeemable Preferred Stock bears a 6% dividend per annum, payable quarterly, and is redeemable at face value (plus any accrued and unpaid dividends) at any time at the Companys option, or at the Holders option upon the Companys achievement of certain production and reserves thresholds. These thresholds include, the Companys annualized gross production average for 90 consecutive days at 2,500 BOE per day or higher or the Companys present value discounted at 10% of its proved developed producing properties filed with the Securities and Exchange Commission exceeds $50 million.
Gross Proceeds From Preferred Stock				$ 1,900,000			$ 50,000,000
Dividends, Preferred Stock				$ 270,000		$ 240,000
Preferred Stock, Shares Authorized			2,000
Preferred Stock, Dividend Rate, Percentage			6.00%	6.00%	6.00%
Convertible Preferred Stock Conversion Price				$ 1.10
Series B Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Issuance of Private Placement		$ 20,000,000
Preferred Stock, Shares Issued				14,379		16,882
Preferred Stock, Shares Authorized				20,000		20,000
Preferred Stock, Dividend Rate, Percentage		6.00%
Convertible Preferred Stock Conversion Price				$ 1.10
Preferred Stock, Value, Issued				$ 10,983,000		$ 13,432,000
Conversion Of Cumulative Dividend Payable Into Common Stock				$ 100,000
Conversion of Stock, Shares Converted				2,300,000
Cumulative Dividends				$ 700,000
Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Price	$ 6.30
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 4.50	$ 2.50
Purchase Of Common Stock Shares By Warrants Issued		9,090,926
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	2,600,000
Sale of Stock, Number of Shares Issued in Transaction	5,200,000
Conversion of Stock, Shares Issued	5,200,000
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	0.50
Sale of Stock, Price Per Share	$ 3.85
Proceeds from Issuance or Sale of Equity				$ 20,000,000
Private Placement [Member] | Series B Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues		20,000
Share Price		$ 1.20
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 2.50
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		0.78%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		2 years
Preferred Stock, Dividend Rate, Percentage		6.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		238.00%
Purchase Of Common Stock Shares By Warrants Issued				2,597,420
Convertible Preferred Stock Conversion Price		$ 1.10
Convertible Preferred Stock Beneficial Conversion Feature				$ 7,900,000
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants				$ 15,200,000
Private Placement [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues				5,194,821

SHARE BASED AND OTHER COMPENS48

SHARE BASED AND OTHER COMPENSATION (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed		$ 2,779	$ 241
Unrecognized stock-based compensation costs		$ 6,234	$ 1,878
Weighted average amortization period remaining		0 years	0 years
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed		$ 1,776	$ 192
Unrecognized stock-based compensation costs		$ 5,114	$ 1,707
Weighted average amortization period remaining	[1]	1 year 3 months 22 days	2 years 11 months 5 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed		$ 1,003	$ 49
Unrecognized stock-based compensation costs		$ 1,120	$ 171
Weighted average amortization period remaining	[1]	1 year 29 days	1 year 29 days
[1]	Only includes directors and employees for which the options vest over time instead of based upon performance criteria for which the performance criteria have not been met as of March 31, 2016.

SHARE BASED AND OTHER COMPENS49

SHARE BASED AND OTHER COMPENSATION (Details 1)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Restricted Stock [Member]
Number of Shares, Outstanding at January 1, 2017 | shares	1,068,305
Number of Shares, Granted | shares	223,750
Number of Shares, Vested and issued | shares	(174,250)
Number of Shares, Forfeited | shares	(1,136)
Number of Shares, Outstanding at March 31, 2017 | shares	1,116,669
Weighted Average Grant Date Price, Outstanding at January 1, 2017 | $ / shares	$ 1.55
Weighted Average Grant Date Price, Granted | $ / shares	3.76
Weighted Average Grant Date Price, Vested and issued | $ / shares	(3.90)
Weighted Average Grant Date Price, Forfeited | $ / shares	(2.93)
Weighted Average Grant Date Price, Outstanding at March 31, 2017 | $ / shares	$ 2.95
Restricted Stock Units (RSUs) [Member]
Number of Shares, Outstanding at January 1, 2017 | shares	149,584
Number of Shares, Vested and issued | shares	(139,585)
Number of Shares, Outstanding at March 31, 2017 | shares	9,999
Weighted Average Grant Date Price, Outstanding at January 1, 2017 | $ / shares	$ 10.56
Weighted Average Grant Date Price, Vested and issued | $ / shares	16.62
Weighted Average Grant Date Price, Outstanding at March 31, 2017 | $ / shares	$ 16.50

SHARE BASED AND OTHER COMPENS50

SHARE BASED AND OTHER COMPENSATION (Details 2) - Equity Option [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Outstanding Begining	5,956,833
Number of Options, Granted	825,000
Number of Options, Exercised	(170,000)
Number of Options, Forfeited or cancelled	(293,333)
Outstanding Ending	6,318,500	5,956,833
Weighted Average Exercise Price, Outstanding Begining	$ 2.04
Weighted Average Exercise Price, Granted	3.51
Weighted Average Exercise Price, Exercised	1.34
Weighted Average Exercise Price, Forfeited or cancelled	(2.84)
Weighted Average Exercise Price, Outstanding Ending	$ 3.05	$ 2.04
Stock Options Outstanding and Exercisable Number of Options Vested/Exercisable at Beginning balance	2,208,757
Stock Options Outstanding and Exercisable Number of Options Vested/Exercisable, Granted	0
Stock Options Outstanding and Exercisable Number of Options Vested/Exercisable, Exercised	0
Stock Options Outstanding and Exercisable Number of Options Vested/Exercisable, Forfeited or cancelled	0
Stock Options Outstanding and Exercisable Number of Options Vested/Exercisable at Ending balance	2,683,808	2,208,757
Stock Options Outstanding and Exercisable Weighted Average Remaining Contractual Life (Years)	9 years 2 months 26 days	9 years 8 months 5 days
Stock Options Outstanding and Exercisable, Granted Weighted Average Remaining Contractual Life (Years)	0 years
Stock Options Outstanding and Exercisable, Exercised Weighted Average Remaining Contractual Life (Years)	0 years
Stock Options Outstanding and Exercisable, Forfeited or Cancelled Weighted Average Remaining Contractual Life (Years)	0 years

SHARE BASED AND OTHER COMPENS51

SHARE BASED AND OTHER COMPENSATION (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	825,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 3.51
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	112.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.27%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 0
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 5
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms	1 year 3 months 18 days
Servicing Asset at Amortized Cost	$ 0	$ 0

SUPPLEMENTAL NON-CASH TRANSAC52

SUPPLEMENTAL NON-CASH TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Conversion of Series B preferred stock and accrued dividends to common stock	$ 2,549	$ 0
Commitment fees offset by issuance of common stock for private placement	250	0
Fair value of repriced warrants as debt discount to term loan	1,031	546
Increase in final settlement on the divestiture of DJ Basin properties in accrued liabilities	584	0
Cashless exercise of warrants	371	0
Change in capital expenditures for drilling costs in accrued liabilities	$ 812	$ 950

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitments And Contingencies Textual [Abstract]
Operating Leases, Rent Expense	$ 0	$ 0
Operating Leases, Future Minimum Payments Due	$ 0

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended
	Apr. 26, 2017	Apr. 24, 2017	Jun. 15, 2016	Apr. 25, 2017
Series B Preferred Stock [Member]
Subsequent Event [Line Items]
Preferred Stock, Dividend Rate, Percentage			6.00%
Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Instrument, Convertible, Conversion Price				$ 4.26
Debt Instrument, Description	Each tranche of the Loans is separately convertible at any time, in full and not in part, at the option of the Lead Lender, as follows:   ⋅ 70% of the principal amount of each tranche of Loans, together with accrued and unpaid interest and the make-whole premium on such principal amount, will convert into a number of newly issued shares of common stock determined by dividing the total of such principal amount, accrued and unpaid interest and make-whole premium by $5.50 (subject to adjustment as described below, the “Conversion Price”); and   ⋅ 30% of the principal amount of each tranche of Loans, together with accrued and unpaid interest and the make-whole premium on such principal amount, will convert on a dollar for dollar basis into a new term loan (the “Take Back Loans”).   The terms of the Take Back Loans will be substantially the same as the terms of the Loans, except that the Take Back Loans will not be convertible and will bear interest at a rate of LIBOR plus 9% (subject to a 1% LIBOR floor).
Equity Method Investment, Ownership Percentage	19.999%
Appointment Of Additional s Description	the right to appoint two members of the Board of Directors as long as they continue to own at least 20% of the outstanding common stock and one member of the Board of Directors as long as they continue to own at least 12.5% (but less than 20%) of the outstanding common stock.
Subsequent Event [Member] | Second Lien Credit Agreement [Member]
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 125
Debt Instrument, Interest Rate, Stated Percentage	8.25%
Subsequent Event [Member] | Second Lien Term Loan [Member]
Subsequent Event [Line Items]
Debt Instrument, Maturity Date	Apr. 26, 2021
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	110.00%
Subsequent Event [Member] | Second Lien Term Loan [Member] | Second Lien Credit Agreement [Member]
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 80
Subsequent Event [Member] | Delayed Draw Loans [Member] | Second Lien Credit Agreement [Member]
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 45
Subsequent Event [Member] | Take Back Loans [Member]
Subsequent Event [Line Items]
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	150.00%
Debt Instrument, Description of Variable Rate Basis	LIBOR plus 9% (subject to a 1% LIBOR floor).
Debt Instrument, Basis Spread on Variable Rate	9.00%
Subsequent Event [Member] | Bridge Loan [Member]
Subsequent Event [Line Items]
Debt Instrument, Face Amount		$ 15
Debt Instrument, Description	The First Lien Credit Agreement, as amended by the First Lien Amendments, provides that the unpaid principal of the Bridge Loans will bear cash interest at a rate per annum of (i) 6% for the first six months after the execution of the Amendment and (ii) thereafter, so long as any Bridge Loan is outstanding, a rate of 10%. Additionally, the unpaid principal of the Bridge Loans will bear interest at a rate per annum of 6%, payable only in-kind by increasing the principal amount of the Bridge Loans by the amount of such interest due on each interest payment date. The Bridge Loan matures on October 24, 2018. The Bridge Loans may be repaid in whole or part at any time at the option of the Company, subject to the payment of certain specified prepayment premiums. The Bridge Loans are subject to mandatory prepayment with the net proceeds of certain asset sales and casualty events, subject to the right of the Company to reinvest the net proceeds of asset sales and casualty events within 180 days.
Subsequent Event [Member] | Series B Preferred Stock [Member]
Subsequent Event [Line Items]
Preferred Stock, Dividend Rate, Percentage		6.00%
Subsequent Event [Member] | Series B Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Preferred Stock, Dividend Rate, Percentage		6.00%
Subsequent Event [Member] | Conversion Agreement [Member]
Subsequent Event [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion		14.3