Lilis Energy (LLEX) 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 11, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
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		50,818,714

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 42,739	$ 11,738
Accounts receivable, net of allowance of $78 and $106, respectively	4,002	2,247
Prepaid expenses and other current assets	1,764	767
Total current assets	48,505	14,752
Oil and natural gas properties, full cost method of accounting
Unproved	39,946	24,461
Proved	43,961	69,809
Less: accumulated depreciation, depletion, amortization and impairment	(7,836)	(55,771)
Total oil and natural gas properties, net	76,071	38,499
Other assets:
Other property and equipment, net	88	52
Other assets	343	216
Total other assets	431	268
Total assets	125,007	53,519
Current liabilities:
Accounts payable	5,537	5,166
Accrued liabilities	9,150	2,706
Dividends payable	0	808
Asset retirement obligations	273	338
Current portion of long-term debt	16	17
Total current liabilities	14,976	9,035
Long term liabilities:
Asset retirement obligations	910	919
Long-term debt, net of current portion	62,302	30,226
Long-term derivative liabilities	39,843	1,400
Total liabilities	118,031	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 $2,240 at December 31, 2016	0	1,874
Stockholders’ Equity:
Common stock, $0.0001 par value; 150,000,000 shares authorized, 50,780,718 and 20,918,901 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively.	5	2
Additional paid-in capital	262,081	219,837
Accumulated deficit	(255,110)	(223,206)
Total stockholders’ equity	6,976	10,065
Total liabilities, redeemable preferred stock and stockholders’ equity	125,007	53,519
Series B Preferred Stock [Member]
Stockholders’ Equity:
Series B convertible preferred stock, $0.0001 par value; stated value of $1,000; 20,000 shares authorized; 16,828 shares issued and outstanding at December 31, 2016, with a liquidation preference of $20,627 at December 31, 2016.	0	13,432
Total stockholders’ equity	$ 0	$ 13,432

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Thousands	Jun. 30, 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	0	2,000
Redeemable 6% preferred stock, shares outstanding	0	2,000
Redeemable 6% preferred stock, liquidation preferences		$ 2,240
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Shares, Issued	50,780,718	20,918,901
Common Stock, Shares, Outstanding	50,780,718	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		16,828
Preferred Stock, Shares Outstanding		16,828
Preferred Stock, liquidation preference		$ 20,627

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue:
Oil sales, natural gas and other product sales	$ 5,425	$ 990	$ 8,658	$ 1,032
Costs and expenses:
Production costs	1,435	328	2,364	365
Production taxes	278	52	420	54
General and administrative	16,289	3,505	25,600	5,169
Depreciation, depletion, accretion and amortization	1,358	539	2,504	562
Total costs and expenses	19,360	4,424	30,888	6,150
Loss from operations	(13,935)	(3,434)	(22,230)	(5,118)
Other income (expenses):
Other income (expense)	(141)	247	(133)	245
Inducement expense	0	(5,127)	0	(5,127)
Change in fair value of derivative liabilities	(2,418)	(29)	(2,073)	(97)
Change in fair value of conditionally redeemable 6% preferred stock	0	(454)	(41)	(778)
Interest expense	(6,654)	(2,269)	(7,427)	(3,603)
Total other expenses	(9,213)	(7,632)	(9,674)	(9,360)
Net loss	(23,148)	(11,066)	(31,904)	(14,478)
Dividends on redeemable preferred stock	(92)	(30)	(122)	(60)
Dividend on Series A Convertible Preferred Stock	0	(137)	0	(287)
Loss on extinguishment of Series A Convertible Preferred Stock	0	(540)	0	(540)
Dividends and deemed dividends on Series B Convertible Preferred Stock	(4,422)	(7,906)	(4,635)	(7,906)
Net loss attributable to common shareholders	$ (27,662)	$ (19,679)	$ (36,661)	$ (23,271)
Net loss per common share basic and diluted	$ (0.62)	$ (4.99)	$ (1.07)	$ (6.78)
Weighted average shares outstanding:
Basic and diluted	44,332,270	3,946,573	34,282,784	3,431,122

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Percentage Of Redeemable Preferred Stock	6.00%	6.00%	6.00%	6.00%

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit) - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Total	Series B Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2016	$ 10,065	$ 13,432	$ 2	$ 219,837	$ (223,206)
Balance (in shares) at Dec. 31, 2016		16,828	20,918,901
Stock based compensation	9,386	$ 0	$ 0	9,386	0
Stock based compensation (in shares)		0	0
Common stock for restricted stock and stock options	228	$ 0	$ 0	228	0
Common stock for restricted stock and stock options (in shares)		0	2,815,944
Common stock withheld for taxes on stock based compensation	(1,555)	$ 0	$ 0	(1,555)	0
Common stock withheld for taxes on stock based compensation (in shares)		0	(337,121)
Common stock for drilling services	97	$ 0	$ 0	97	0
Common stock for drilling services (in shares)		0	22,938
Exercise of warrants	164	$ 0	$ 0	164	0
Exercise of warrants (in shares)		0	5,487,078
Cashless exercise of warrants	371	$ 0	$ 0	371	0
Cashless exercise of warrants (in shares)		0	77,131
Conversion of Series B preferred stock and dividends to common stock	1,433	$ (13,432)	$ 2	14,863	0
Conversion of Series B preferred stock and dividends to common stock (in shares)		(16,828)	16,601,026
Common stock for private placement, net	18,650	$ 0	$ 1	18,649	0
Common stock for private placement, net (in shares)		0	5,194,821
Warrant repriced for term loan	1,031	$ 0	$ 0	1,031	0
Dividends on conditionally redeemable preferred stock	(122)	0	0	(122)	0
Dividends and deemed dividends on Series B preferred stock	(868)	0	0	(868)	0
Net loss	(31,904)	0	0	0	(31,904)
Balance at Jun. 30, 2017	$ 6,976	$ 0	$ 5	$ 262,081	$ (255,110)
Balance (in shares) at Jun. 30, 2017		0	50,780,718

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (31,904)	$ (14,478)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity instruments issued for services and compensation	9,386	1,946
Inducement expense	0	5,127
Bad debt expense	0	200
Amortization of debt issuance cost and debt discount	5,210	2,496
Paid-in-kind interest	1,341	0
(Gain) loss in fair value of derivative instruments	2,073	(125)
Loss in fair value of conditionally redeemable 6% preferred stock	41	778
Depreciation, depletion, accretion and amortization	2,504	562
Gain on extinguishment of debt	0	(250)
Changes in operating assets and liabilities:
Accounts receivable	(1,756)	209
Prepaid and other assets	(479)	(189)
Accounts payable, accrued expenses and other liabilities	6,170	1,972
Net cash used in operating activities	(7,414)	(1,752)
Cash flows from investing activities:
Cash advance to Brushy Resources, Inc.	0	(552)
Net proceeds from sale of DJ Basin properties	1,082	0
Capital expenditures	(40,280)	0
Restricted cash	(645)	(1,918)
Net cash used in investing activities	(39,843)	(2,470)
Cash flows from financing activities:
Net proceeds from issuance of Series B Preferred Stock	0	16,095
Proceeds from issuance of convertible notes	0	2,863
Proceeds from exercise of accordion feature of the First Lien Term Loan, net of financing costs	6,706	0
Proceeds from Bridge Loan and Second Lien Term Loan, net of financing costs	94,700	0
Repayment of the First Lien Term Loan	(38,100)
Repayment of conditionally redeemable 6% preferred stock including dividends	(2,277)
Proceeds from warrant exercise	164	143
Proceeds from exercise of stock options	228	0
Payment for tax withholding on stock based compensation	(1,555)	0
Proceeds from private placement, net of financing costs	18,400	0
Repayment of notes payable	(8)	(8,500)
Net cash provided by financing activities	78,258	10,601
Assets acquired and liabilities assumed through Brushy Merger:
Increase in cash	31,001	6,379
Cash and cash equivalents at beginning of period	11,738	110
Cash and cash equivalents at end of period	42,739	6,489
Supplemental disclosure:
Cash paid for interest	$ 1,318	$ 217

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 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 natural 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 of its common stock (the “Reverse Split”). The accompanying condensed

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES The condensed In management’s opinion, these unaudited condensed Condensed 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 natural gas properties, fair value of financial instruments including derivative liabilities, depreciation and accretion, income taxes and contingencies. The Company follows the full cost method of accounting for oil and natural 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 of proved reserves. 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 natural 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 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 natural 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 forecasted revenues from estimated future production of proved oil and natural 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 first-day-of-the-month price from various indices. The flat oil price is adjusted to match up with accounting data through the use of a differential. June 30, December 31, ($ in thousands) Accrued bonus $ 1,894 $ - Accrued drilling costs 2,407 1,331 Revenue payable 3,310 1,313 Accrued costs related to divestiture of DJ Basin properties 584 - Accrued payroll tax withholding 237 - Other accrued liabilities 718 62 $ 9,150 $ 2,706 The Company incurs retirement obligations for certain assets at the time they are placed in service. The present 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 44,000 3,000 6,000 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 June 30, 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 revenue payable. As of June 30, 2017 and December 31, 2016, the Company had approximately $ 3.3 1.3 Major Customers Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Texican Natural Gas Company 82 % 74 % 80 % 75 % Energy Transfer Partners, L.P. 17 % 16 % 20 % 16 % Others below 10% 1 % 10 % - % 9 % 100 % 100 % 100 % 100 % The Company accounts for long-lived assets (other than oil and natural gas properties) at cost. Other long-lived assets consist principally of property and equipment and identifiable intangible assets with finite useful lives (subject to depreciation and amortization). 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. 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 calculation of diluted loss per share includes the weighted average common shares outstanding plus the potential dilutive impact of shares issuable upon the conversion of debt or preferred stock, unvested restricted stock and exercise of warrants and options during the period, unless their effect is anti-dilutive. At June 30, 2017 and December 31, 2016, shares underlying conversion of term loan, restricted stock units, restricted stock, options, warrants and preferred stock have been excluded from the diluted share calculations as they were anti-dilutive as a result of net losses incurred. The Company had the following shares of common stock equivalents at June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 Stock Options 7,158,500 5,956,833 Restricted Stock Units 9,999 149,584 Restricted Stock 1,249,152 1,068,305 Series B Preferred Stock - 15,454,545 Stock Purchase Warrants (1) 12,523,045 12,392,776 Conversion of Term Loan 13,572,950 - 34,513,646 35,022,043 (1) Exclude 3,522,735 0.01 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 July 13, 2017, the Financial Accounting Standards Board (“FASB”) issued a two-part ASU 2017-11, “ (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Redeemable Noncontrolling Interests with a Scope Exception.” On May 17, 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting Compensation – Stock Compensation On February 22, 2017, the FASB Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”, On January 5, 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business”, “Restricted Cash (Topic 230),” 0.6 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)”, On March 30, 2016, the Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. On March 14, 2016, the FASB issued ASU No. 2016-06, “ Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments” On February 25, 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” and liabilities for the rights and obligations created by long-term leases of assets on the balance sheet. The guidance requires adoption by application of a modified retrospective transition approach for existing long-term leases and is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Oil and natural gas leases are scoped out of the new ASU. As of June 30, 2017, the Company currently has only one operating lease within the scope of this standard that expires in less than 2 years. The effect of this guidance relating to the Company’s existing long-term leases is expected to require additional disclosures, and is currently evaluating the impact that this ASU would have on the Company’s consolidated financial statements. On May 28, 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES & OIL AND NATURAL GAS PROPERTY ACQUISITIONS AND DIVESTITURES	6 Months Ended
	Jun. 30, 2017
Extractive Industries [Abstract]
OIL AND NATURAL GAS PROPERTIES & OIL AND NATURAL GAS PROPERTY ACQUISITIONS AND DIVESTITURES	NOTE 3 - OIL AND NATURAL GAS PROPERTIES & OIL AND NATURAL GAS PROPERTY ACQUISITIONS AND DIVESTITURES Divestiture of DJ Basin Properties On March 31, 2017, the Company entered into a Purchase and Sale Agreement with Nanke Energy LLC for the divestiture of all of its oil and natural gas properties located in the Denver-Julesburg Basin (the “DJ Basin”) for consideration of $ 2 Related Party Transactions. 1.08 0.7 0.22 . The June 30, December 31, 2017 2016 (In thousands) Unproved unevaluated acreage: Beginning balance $ 24,461 $ - Lease purchases 15,485 546 Assets acquired - 23,915 Total unproved acreage $ 39,946 $ 24,461 Wells in progress: Beginning balance $ 7,453 $ - Additions 11,260 7,453 Reclassification to evaluated properties (7,411) - Total wells in progress and not subject to DD&A $ 11,302 $ 7,453 During the three and six months ended June 30, 2017 and 2016, no impairment was recorded on the Company’s oil and natural gas properties. Depreciation, depletion and amortization expense related to proved properties was approximately $ 1.4 2.5 0.5 0.6

MERGER WITH BRUSHY RESOURCES, I

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS	NOTE 4 - 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 (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 Accounts payable and accrued expenses $ 5,447 Term loan - Independent Bank 11,379 16,826 Long-term debt 19 Asset retirement obligations 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 Natural 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 Three Months Six Months Ended (in thousands, except per share amounts) Revenue $ 1,808 $ 2,630 Net loss $ (5,843) $ (10,511) Net loss per common share basic and diluted $ (1.48) $ (3.06) Weighted average shares outstanding: Basic and diluted 3,946,573 3,431,122

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures the 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 derivative liability associated with the Second Lien Term Loan and warrants are measured using Level 3 inputs as follows: Second Lien Term Loan Conversion Features: Under the terms of the Company’s Second Lien Term Loan, (the “Loan”) the lead lender has the option to 70 the principal amount of each tranche of Loan, together with accrued and unpaid interest and the make-whole premium on such principal amount (together, the “Conversion Sum”), into shares of common stock. The make-whole premium is the cash amount to the excess of (a) the present value at such repayment, prepayment or acceleration date or the date the Obligations otherwise become due and payable in full of (1) the sum of the principal amount repaid, prepaid or accelerated plus 150 Price then in effect for at least 20 of the 30 immediately preceding trading days. The features of the Make-Whole Premium in the Loan require the conversion features to be recorded as embedded derivatives and bifurcated from its host contracts, the Second Lien Term Loan, and accounted for separately from the debt. The conversion features contained in the Loan are recorded as a derivative liability at fair value each reporting period based upon values determined through the use of discounted lattice models of the Second Lien Term Loan. Change in fair value is accounted for in the consolidated statement operations. At June 30, 2017, the fair value of the derivative liabilities associated with the Second Lien Term Loan conversion features was approximately $ 39.5 2.8 The fair value of the holder conversion features was determined using a binomial lattice model based on certain assumptions including (i) the Company’s stock price, (ii) risk-free rate, (iii) expected volatility, (iv) the Company’s implied credit rating, and (v) the implied credit yield of the Loan. Heartland Warrant Liability. On January 8, 2015, the Company entered into the Heartland Credit Agreement. In connection with the Heartland Credit Agreement, the Company issued a warrant to purchase up to 22,500 25.00 0.3 0.004 160,714 3.50 0.02 SOS Warrant Liability. 200,000 25.00 0.2 Bristol Capital, LLC Warrant Liability. On September 2, 2014, the Company entered into a Consulting Agreement with Bristol Capital, LLC (“Bristol”), pursuant to which the Company issued to Bristol a warrant to purchase up 100,000 20.00 100,000 77,131 0.8 0.4 0.4 (in thousands): June 30, 2017 Level 1 Level 2 Level 3 Total Recurring fair value measurements: Warrant liabilities - - (317) (317) Second Lien Term Loan conversion features - - (39,526) (39,526) Total recurring fair value measurements $ - $ - $ (39,843) $ (39,843) 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): Second Lien Bristol/ Total Balance at January 1, 2017 $ - $ (1,400) $ (1,400) Issuance (36,741) - (36,741) Cashless exercise of warrants - 371 371 Change in fair value of derivative liabilities (2,785) 712 (2,073) Balance at June 30, 2017 $ (39,526) $ (317) $ (39,843) Convertible Bristol/ Incentive Total Balance at January 1, 2016 $ (6) $ (56) $ (223) $ (285) Reversal of accrued bonus - - 223 223 Additional liability - (164) - (164) Converted to equity 43 - - 43 Change in fair value of liability (37) (60) - (97) Balance at June 30, 2016 $ - $ (280) $ - $ (280) Assets and liabilities measured at fair value on a nonrecurring basis. 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 six months ended June 30, 2017 and 2016.

LONG-TERM DEBTS

LONG-TERM DEBTS	6 Months Ended
	Jun. 30, 2017
Long-term Debt, Unclassified [Abstract]
LONG-TERM DEBT	NOTE 6 - LONG-TERM DEBTS June 30, December 31, 2017 2016 (In thousands) Term Loans (see table below): 6% Senior Secured Term Loan, due 2019, net of debt issuance costs $ - $ 29,214 6% Bridge Loan associated with the amended First Lien Term Loan, net of debt issuance costs 14,903 - 8.25% Second Lien Term Loan, net of debt issuance costs and debt discount 46,396 - 6% note payable to SOS Investment, LLC, due 2019 1,000 1,000 Notes payable - other 19 29 Total long-term debts: 62,318 30,243 Less: current portion (16) (17) Total long-term debts, net of current portion: $ 62,302 $ 30,226 Unamortized Paid-in- Issuance Principal kind Costs & Debt Carrying Amount Interest Discount Amount June 30, 2017: Bridge Loan associated with the amended First Lien Term Loan, due September 2019 $ 15,000 $ 165 $ (262) $ 14,903 Second Lien Term Loan, due April 2021 80,000 1,176 (34,780) 46,396 Total: $ 95,000 $ 1,341 $ (35,042) $ 61,299 December 31, 2016: Senior Secured Term Loan, due 2019 $ 31,000 $ - $ (1,786) $ 29,214 Total: $ 31,000 $ - $ (1,786) $ 29,214 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 31 38.1 In connection with the exercise of the accordion advance feature for $ 7.1 0.4 738,638 2.50 0.01 1.0 0.6 million debt discount at December 31, 2016, over the remaining term of the loan. On April 26, 2017, the Company fully paid off the amount outstanding of $ 38.1 1.6 Amendments to First Lien Credit Agreement On April 24, 2017, and subsequently on April 26, 2017 and July 25, 2017, the Company entered into the first, second and third amendments (together, the “First Lien Amendments”), respectively, to the Company’s First Lien Credit Agreement. The First Lien Amendments, among other things, added Lilis Operating and Hurricane Resources as guarantors under the credit agreement, added certain lenders, and extended further credit in the form of a bridge loan 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 Term Loans in full including accrued and unpaid interest thereon. The First Lien Credit Agreement, as amended by the First Lien Amendments, provides that the unpaid principal of the Bridge Loan 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 Loan will bear interest at a rate per annum of 6% compounded quarterly in arrears and payable only in-kind. The Bridge Loan matures on October 21, 2018, and may be repaid in whole or part at any time by the Company, subject to payment of certain specified prepayment premiums. The Bridge Loan is subject to mandatory prepayment with the net proceeds of certain asset sales and casualty Second Lien Credit Agreement On April 26, 2017, the Company entered into a Second Lien Term Loan Credit Agreement, as amended (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., as lead lender (the “Lead Lender”) comprised of convertible loans in an aggregate initial principal amount of up to $ 125 80 45 8.25 The Second Lien Loans are secured by second priority liens on substantially all of the Company’s and the Guarantors’ assets, including their oil and natural gas properties located in the Delaware Basin, and all of the obligations thereunder are unconditionally guaranteed by each of the Guarantors. The Second Lien Loans mature on April 26, 2021 110 · 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 certain customary adjustments, 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 payable in cash at a rate of LIBOR plus 9 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 the Company’s conversion option, the closing price of the common stock on the principal exchange on which it is traded has been at least 150 Conversion at the Company’s option will occur on the same terms as conversion at the Lender’s option. As discussed in Note 5, Fair Value of Financial Instruments, Derivatives, SOS 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 SOS SOS 1 6 June 30, 2019 200,000 25.00 0.2 Interest Expense (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest on term loans $ 330 $ 130 $ 847 $ 217 Interest on notes payable 15 9 29 9 Interest on convertible notes and debentures (1) - 329 - 881 Paid-in-kind interest on term loans 1,341 - 1,341 - Amortization of debt financing costs on term loans 1,495 193 1,622 220 Amortization of discount on term loans 3,473 1,608 3,588 2,276 Total: $ 6,654 $ 2,269 $ 7,427 $ 3,603 (1) These convertible notes and debentures including accrued interest were fully converted into the Company’s common stock upon closing of the Brushy merger on June 23, 2016.

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	NOTE 7 - DERIVATIVES As discussed in Note 5, the Second Lien Term Loan contains conversion features that are exercisable at the option of the lender or the borrower. The conversion features have been identified as embedded derivatives which (i) contain economic characteristics that are not clearly and closely related to the host contract, the Second Lien Term Loan, and (ii) separate, stand-alone instruments with similar terms would qualify as derivative instruments. As such, the conversion features were bifurcated and accounted for separately from the Second Lien Term Loan. The conversion features are recorded at fair value for each reporting period with changes in fair value included in the consolidated statement of operations for the three and six months ended June 30, 2017. The Company recorded a derivative liability associated with the Second Lien Term Loan at fair value of approximately $ 36.7 39.5 2.8 0.3 0.2

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 - RELATED PARTY TRANSACTIONS Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) More than 5% Shareholder: TRW Cash paid for Series B Preferred Stock offering fees and broker warrants to purchase up to 452,724 shares of common stock, at an exercise price of $1.30 per share, exercisable on or after September 17, 2016. $ - $ 500 Reinvested fee for 150 shares of Series B Preferred Stock and 68,182 warrants at exercise price of $2.50 per share. - 150 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 529 Cash paid for advance fee on Convertible Notes and the cash was reinvested in 350 shares of Series B Preferred Stock. - 350 Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. - 400 Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. 520 - Participated in private placement transaction on February 28, 2017 796 Sublet office space in New York to the Company for rent of $10,000 per month beginning January 1, 2017. 60 - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 17 - Total: $ 1,393 $ 1,929 Pierre Caland (Wallington Investment Holdings, Ltd) Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 273 $ 250 Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. - 300 Converted the holdings of Debentures entered into on December 29, 2015 into common stock upon the closing of the Brushy merger on June 23, 2016. - 2,090 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 125 Participated in private placement transaction on February 28, 2017 1,100 - Total: $ 1,373 $ 2,765 Bryan Ezralow Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 628 $ 1,300 Converted the holdings of Debentures entered into on December 29, 2015 into common stock through EZ Colony Partners, LLC owned by Bryan Ezralow upon the closing of the Brushy merger on June 23, 2016. - 1,540 Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 21 - Participated in private placement transaction on February 28, 2017 1,400 - Total: $ 2,049 $ 2,840 Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) Mark Ezralow Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 574 $ - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 18 - Participated in private placement transaction on February 28, 2017. 1,200 - Total: $ 1,792 $ - J. Steven Emerson Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 1,639 $ - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 30 - Participated in private placement transaction on February 28, 2017 2,500 - Total: $ 4,169 $ - Steve B. Dunn and Laura Dunn Revocable Trust dated 10/28/10 Converted the holdings of Debentures entered into on December 29, 2015 into common stock $ - $ 1,020 Total: $ - $ 1,020 Rosseau Asset Management Ltd Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 2,185 $ 1,028 Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 2 - Total: $ 2,187 $ 1,028 Investor Company Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 4,318 $ - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 23 - Total: $ 4,341 $ - Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) LOGiQ Capital (Front Street) Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 3,199 $ - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 1 - Total: $ 3,200 $ - Directors and Officers: Nuno Brandolini (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. $ - $ 150 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 100 Warrants exercised at $0.10 per share during the six months ended June 30, 2017. 4 - Total: $ 4 $ 250 General Merrill McPeak (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. $ - $ 250 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 250 Total: $ - $ 500 R. Glenn Dawson (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. $ - $ 50 Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. 130 - Total: $ 130 $ 50 Ronald D Ormand (Executive Chairman) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 through the Bruin Trust.(1) These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. $ - $ 1,150 Participated in Series B Preferred Stock offering in 2016 and converted into common stock in 2017 through Perugia Investment LP(2) during the six months ended June 30, 2017. 1,093 1,000 Converted shares of Series A Preferred Stock into common stock through Perugia Investment LP upon the closing of the Brushy merger on June 23, 2016. - 500 Warrants exercised at $0.10 per share during the six months ended June 30, 2017. 4 - Total: $ 1,097 $ 2,650 Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) Abraham Mirman (former Chief Executive Officer and Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 through The Bralina Group, LLC. (2) $ 1,803 $ 750 Participated in Series B Preferred Stock offering in 2016 and converted into common stock in 2017 through the Bralina Group, LLC. - 1,650 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 250 Total: $ 1,803 $ 2,650 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 $ - Golf tournament charges and telephone charges billed by MMZ Consulting, Inc and claimed through expense report 1 - Total: $ 204 $ - Kevin Nanke (former Chief Financial Officer) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were converted into the Company’s common stock upon the closing of the Brushy merger on June 23, 2016. $ - $ 100 Participated in Series B Preferred Stock offering in 2016 and converted into common stock in 2017 through KKN Holdings LLC during the six months ended June 30, 2017 219 200 Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 4 - Purchased the DJ Basin properties from the Company through Nanke Energy, LLC on January 31, 2017. 2,000 - Total: $ 2,223 $ 300 (1) An irrevocable trust managed by Jerry Ormand, Mr. Ormand's brother, as trustee and whose beneficiaries are the adult children of Ronald Ormand. (2) Mr. Ormand has sole voting and dispositive power over the securities held by Perugia Investment LP. (3) Mr. Mirman has shared voting and dispositive power over the securities held by The Bralina Group, LLC with Susan Mirman.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
SHAREHOLDERS’ EQUITY	NOTE 9 - SHAREHOLDERS’ EQUITY Authorized Shares of Common Stock On May 2, 2017, the Board of Directors authorized the amendment of the Company’s certificate of incorporation to increase the number of authorized shares of common stock by 50 100 Conditionally Redeemable 6% Preferred Stock In August 2014, the Company designated 2,000 6 2,000 1,000 Effective as of April 24, 2017, the Company 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 (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 natural 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 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 was 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. Except as otherwise required by law, holders of the Series B Preferred Stock were not be entitled to voting rights. The Series B Preferred Stock was convertible at any time, subject to certain conditions, at the option of the holders, or at the Company’s discretion when the Company’s common stock trades above $10.00 (subject to any reverse or forward stock splits and the like) for ten consecutive days. In addition, the Company had the right to redeem the shares of Series B Preferred Stock, along with any accrued and unpaid dividends, at any time, subject to certain conditions set forth in the Certificate of Designation. The holders of the Series B Preferred Stock were entitled to receive a dividend payable (subject to certain conditions set forth in the Certificate of Designation), in cash or shares of common stock of the Company, at the election of the Company, at a rate of 6% per annum. On April 25, 2017, the Company entered into a Series B 6.0% Convertible Preferred Stock Conversion Agreement (the “Conversion Agreement”), with all of the holders of the outstanding Series B 6% Convertible Preferred Stock (the “Series B Holders”) to convert any outstanding shares of Series B 6% Convertible Preferred Stock including an increase in the stated value of to reflect dividends that would have accrued through December 31, 2017 in the amount of approximately 14.3 6 4.4 4.6 The Conversion Agreement contained customary representations and warranties by the Series B Holders and other agreements and obligations of the parties. 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 six months ended June 30, 2017: Warrants Weighted- Outstanding at January 1, 2017 15,915,511 $ 3.34 Warrants issued in connection with private placement 2,597,420 4.50 Warrants issued to Heartland 160,714 3.50 Exercised, forfeited, or expired (6,150,600) (0.39) Outstanding at June 30, 2017 12,523,045 $ 4.59

SHARE BASED AND OTHER COMPENSAT

SHARE BASED AND OTHER COMPENSATION	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE BASED AND OTHER COMPENSATION	NOTE 10 - SHARE BASED AND OTHER COMPENSATION Six Months Ended Six Months Ended Stock Restricted Total Stock Restricted Total Stock-based compensation expensed $ 3,273 $ 6,113 $ 9,386 $ 1,731 $ 10 $ 1,741 Unrecognized stock-based compensation costs $ 7,669 $ 2,094 $ 9,763 $ 3,050 $ 120 $ 3,170 Weighted average amortization period remaining 0.82 0.74 - 1.99 0.87 - Restricted Stock Number of Weighted Outstanding at January 1, 2017 1,068,305 $ 1.55 Granted 1,313,845 $ 4.50 Vested and issued (821,580) $ (4.39) Forfeited (311,418) $ (4.61) Outstanding at June 30, 2017 1,249,152 $ 2.01 A summary of restricted stock unit grant activity pursuant to the 2012 Plan for the six months ended June 30, 2017 is presented below. Number of Weighted Outstanding at January 1, 2017 149,584 $ 10.56 Vested and issued (139,585) 4.77 Cancelled or forfeited - - Outstanding at June 30, 2017 $ 9,999 $ 1.60 Stock Options A summary of stock option activity for the six months ended June 30, 2017 is presented below: Stock Options Outstanding and Number Weighted Number Weighted Outstanding at January 1, 2017 5,956,833 $ 2.04 2,208,757 9.7 Granted 2,897,500 $ 4.72 - - Exercised (236,896) $ (1.34) - - Forfeited or cancelled (1,458,937) $ (2.95) - - Outstanding at June 30, 2017 7,158,500 $ 3.70 3,481,374 9.4 During the six months ended June 30, 2017, options to purchase 2,897,500 2.62 1.21 1.45 2 100.5 The options to purchase 2,897,500 (i) Options granted to employees of the Company to purchase 2,147,500 (ii) On June 16, 2017, the Company cancelled 250,000 500,000 750,000 389,657 87,922 Cancellation of an award accompanied by the concurrent grant of (or offer to grant) a replacement award or other valuation consideration.” 0.5 As of June 30, 2017, total unrecognized compensation costs relating to the outstanding options was approximately $ 7.7 0.82

SUPPLEMENTAL NON-CASH TRANSACTI

SUPPLEMENTAL NON-CASH TRANSACTIONS	6 Months Ended
	Jun. 30, 2017
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL NON-CASH TRANSACTIONS	NOTE 11 - SUPPLEMENTAL NON-CASH TRANSACTIONS The following table presents the supplemental disclosure of cash flow information for the six months ended June 30, 2017 and 2016 (in thousands) SIX MONTHS ENDED JUNE 30, 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 $ 14,087 $ - Common stock issued for Brushy’s common stock - 6,942 Common stock issued for Series A Preferred Stock and accrued dividends - 8,221 Common stock issued for convertible debentures and accrued interests - 8,724 Common stock issued for convertible notes And accrued interest - 7,602 Warrants issued for fees associated with Series B 6% Preferred Stock - 7,880 Series B 6% Preferred Stock subscribed - 2,100 Commitment fees offset by issuance of common stock for Private Placement 250 - Fair value of warrants issued and repriced as debt discount 1,031 1,479 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 871 - Issuance of common stock for drilling services 96 - Deemed dividends on Series B 6% Convertible Preferred Stock associated with beneficial conversion features 3,767 - Fair value of derivative liabilities associated with conversion features of Second Lien Term Loan 36,741 -

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 - COMMITMENTS AND CONTINGENCIES Environmental and Governmental Regulation At June 30, 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 natural 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 natural gas industry legislation and administrative regulations are periodically changed for a variety of political, economic, and other reasons. As of June 30, 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	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 13 - SUBSEQUENT EVENTS On August 1, 2017, the Securities and Exchange Commission filed a civil complaint against multiple parties, including our former Chief Executive Officer Abraham Mirman. The allegations in the complaint are unrelated to the business of the Company, and predate Mr. Mirman’s tenure with the Company. Departure of Chief Executive Officer and Director On August 3, 2017, Abraham Mirman notified us of his resignation as our Chief Executive Officer, and as a member of the Board, effective as of August 4, 2017 (the “Separation Date”). Mr. Mirman also resigned from all positions held with our subsidiaries. Mr. Mirman’s decision to resign was not the result of any disagreement with us, the Board, or management, or any matter relating to our operations, policies or practices. In connection with Mr. Mirman’s resignation, we entered into a Separation and Consulting Agreement with him on August 3, 2017 (the “Mirman Agreement”), setting forth the terms of Mr. Mirman’s separation from the Company and his prospective consulting services. Pursuant to the terms of the Mirman Agreement, in satisfaction of any and all obligations under his employment agreement, and provided that Mr. Mirman does not exercise his right to revoke the Mirman Agreement within eight days of its execution, Mr. Mirman will receive the following severance payments, subject to applicable employer and employee withholding by the Company: (1) accrued benefits (including base salary, vacation pay and reimbursements) that are unpaid as of the Separation Date, (2) a lump-sum cash payment of $ 1,000,000 Gas Gathering, Processing and Purchase Agreement On August 10, 2017, the Company entered into a gas gathering, processing and purchase agreement (the “Gathering Agreement”) with Lucid Energy Delaware, LLC (“Lucid”), pursuant to which Lucid will receive, gather and process the Company’s committed gas production from certain production areas located in Lea County, New Mexico and in Loving and Winkler Counties, Texas. Subject to the Company’s take-in-kind rights set forth in the Gathering Agreement, Lucid will purchase the residue gas and plant products allocated to the Company pursuant to the terms and conditions of the Gathering Agreement. To the extent that the Company elects to take such residue gas and plant products in-kind, Lucid shall re-deliver such residue gas and plant products at certain delivery points for downstream transportation. The Gathering Agreement has a term of 10 years that automatically renews on a year-to-year basis until terminated by either party pursuant to the terms of the Gathering Agreement. The Company will pay Lucid fees for the gathering and processing of all committed gas and for such other services provided as set forth in the Gathering Agreement. Lead Lenders’ Right to Appoint a Member to the Board of Directors Pursuant to the terms of the Second Lien Credit Agreement, the Lead Lenders have the right to appoint up to two members to the Board upon conversion of the Second Lien Term Loan, based on the percentage of outstanding common stock held by the Lead Lenders at the time of conversion. On August 12, 2017, the Company and the Lead Lenders entered into a letter agreement pursuant to which the Company granted the Lead Lenders the right to appoint one member to the Board, who shall be reasonably acceptable to the Company, effective immediately upon execution of the letter agreement. The letter agreement provides that, to the fullest extent permitted by law, until the conversion of the Second Lien Term Loan, the Company will include in the slate of nominees recommended by the Board at any meeting of stockholders called for the purpose of electing directors the person designated by the Lead Lenders to serve on the Board pursuant to the appointment right set forth in the letter agreement. The letter agreement was entered into in connection with an acknowledgment and consent by the Lenders related to the resignation and replacement of the Company’s Chief Executive Officer, among other matters.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed
Interim Financial Statements	Interim Financial Statements In management’s opinion, these unaudited condensed Condensed
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 natural gas properties, fair value of financial instruments including derivative liabilities, depreciation and accretion, income taxes and contingencies.
Oil and Gas Producing Activities	Oil And Natural Gas Producing Activities The Company follows the full cost method of accounting for oil and natural 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 of proved reserves. 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 natural 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 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 natural 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 forecasted revenues from estimated future production of proved oil and natural 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 first-day-of-the-month price 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 June 30, December 31, ($ in thousands) Accrued bonus $ 1,894 $ - Accrued drilling costs 2,407 1,331 Revenue payable 3,310 1,313 Accrued costs related to divestiture of DJ Basin properties 584 - Accrued payroll tax withholding 237 - Other accrued liabilities 718 62 $ 9,150 $ 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 present 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 44,000 3,000 6,000
Revenue Recognition	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 June 30, 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 revenue payable. As of June 30, 2017 and December 31, 2016, the Company had approximately $ 3.3 1.3
Major customers	Major Customers Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Texican Natural Gas Company 82 % 74 % 80 % 75 % Energy Transfer Partners, L.P. 17 % 16 % 20 % 16 % Others below 10% 1 % 10 % - % 9 % 100 % 100 % 100 % 100 %
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company accounts for long-lived assets (other than oil and natural gas properties) at cost. Other long-lived assets consist principally of property and equipment and identifiable intangible assets with finite useful lives (subject to depreciation and amortization). 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 calculation of diluted loss per share includes the weighted average common shares outstanding plus the potential dilutive impact of shares issuable upon the conversion of debt or preferred stock, unvested restricted stock and exercise of warrants and options during the period, unless their effect is anti-dilutive. At June 30, 2017 and December 31, 2016, shares underlying conversion of term loan, restricted stock units, restricted stock, options, warrants and preferred stock have been excluded from the diluted share calculations as they were anti-dilutive as a result of net losses incurred. The Company had the following shares of common stock equivalents at June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 Stock Options 7,158,500 5,956,833 Restricted Stock Units 9,999 149,584 Restricted Stock 1,249,152 1,068,305 Series B Preferred Stock - 15,454,545 Stock Purchase Warrants (1) 12,523,045 12,392,776 Conversion of Term Loan 13,572,950 - 34,513,646 35,022,043 (1) Exclude 3,522,735 0.01
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 July 13, 2017, the Financial Accounting Standards Board (“FASB”) issued a two-part ASU 2017-11, “ (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Redeemable Noncontrolling Interests with a Scope Exception.” On May 17, 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting Compensation – Stock Compensation On February 22, 2017, the FASB Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”, On January 5, 2017, the FASB issued ASU 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business”, “Restricted Cash (Topic 230),” 0.6 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)”, On March 30, 2016, the Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. On March 14, 2016, the FASB issued ASU No. 2016-06, “ Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments” On February 25, 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” and liabilities for the rights and obligations created by long-term leases of assets on the balance sheet. The guidance requires adoption by application of a modified retrospective transition approach for existing long-term leases and is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Oil and natural gas leases are scoped out of the new ASU. As of June 30, 2017, the Company currently has only one operating lease within the scope of this standard that expires in less than 2 years. The effect of this guidance relating to the Company’s existing long-term leases is expected to require additional disclosures, and is currently evaluating the impact that this ASU would have on the Company’s consolidated financial statements. On May 28, 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Tables)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Schedule of Accrued Liabilities	As of June 30, 2017 and December 31, 2016, the Company’s accrued liabilities consisted of the following: June 30, December 31, ($ in thousands) Accrued bonus $ 1,894 $ - Accrued drilling costs 2,407 1,331 Revenue payable 3,310 1,313 Accrued costs related to divestiture of DJ Basin properties 584 - Accrued payroll tax withholding 237 - Other accrued liabilities 718 62 $ 9,150 $ 2,706
Schedules of Concentration of Risk, by Risk Factor	During the three and six months ended June 30, 2017 and 2016, the Company’s major customers as a percentage of total revenue consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Texican Natural Gas Company 82 % 74 % 80 % 75 % Energy Transfer Partners, L.P. 17 % 16 % 20 % 16 % Others below 10% 1 % 10 % - % 9 % 100 % 100 % 100 % 100 %
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The Company had the following shares of common stock equivalents at June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 Stock Options 7,158,500 5,956,833 Restricted Stock Units 9,999 149,584 Restricted Stock 1,249,152 1,068,305 Series B Preferred Stock - 15,454,545 Stock Purchase Warrants (1) 12,523,045 12,392,776 Conversion of Term Loan 13,572,950 - 34,513,646 35,022,043 (1) Exclude 3,522,735 0.01

OIL AND NATURAL GAS PROPERTIE23

OIL AND NATURAL GAS PROPERTIES & OIL AND NATURAL GAS PROPERTY ACQUISITIONS AND DIVESTITURES (Tables)	6 Months Ended
	Jun. 30, 2017
Oil And Gas Properties And Oil And Gas Properties Acquisitions And Divestitures [Abstract]
Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization	The following table sets forth a summary of oil and natural gas property costs (net of divestitures) not being amortized at June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 (In thousands) Unproved unevaluated acreage: Beginning balance $ 24,461 $ - Lease purchases 15,485 546 Assets acquired - 23,915 Total unproved acreage $ 39,946 $ 24,461 Wells in progress: Beginning balance $ 7,453 $ - Additions 11,260 7,453 Reclassification to evaluated properties (7,411) - Total wells in progress and not subject to DD&A $ 11,302 $ 7,453

MERGER WITH BRUSHY RESOURCES,24

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	(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 Accounts payable and accrued expenses $ 5,447 Term loan - Independent Bank 11,379 16,826 Long-term debt 19 Asset retirement obligations 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 Natural 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	Three Months Six Months Ended (in thousands, except per share amounts) Revenue $ 1,808 $ 2,630 Net loss $ (5,843) $ (10,511) Net loss per common share basic and diluted $ (1.48) $ (3.06) Weighted average shares outstanding: Basic and diluted 3,946,573 3,431,122

FAIR VALUE OF FINANCIAL INSTR25

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 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): June 30, 2017 Level 1 Level 2 Level 3 Total Recurring fair value measurements: Warrant liabilities - - (317) (317) Second Lien Term Loan conversion features - - (39,526) (39,526) Total recurring fair value measurements $ - $ - $ (39,843) $ (39,843) 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 six months ended June 30, 2017 and 2016 (in thousands): Second Lien Bristol/ Total Balance at January 1, 2017 $ - $ (1,400) $ (1,400) Issuance (36,741) - (36,741) Cashless exercise of warrants - 371 371 Change in fair value of derivative liabilities (2,785) 712 (2,073) Balance at June 30, 2017 $ (39,526) $ (317) $ (39,843) Convertible Bristol/ Incentive Total Balance at January 1, 2016 $ (6) $ (56) $ (223) $ (285) Reversal of accrued bonus - - 223 223 Additional liability - (164) - (164) Converted to equity 43 - - 43 Change in fair value of liability (37) (60) - (97) Balance at June 30, 2016 $ - $ (280) $ - $ (280)

LONG-TERM DEBTS (Tables)

LONG-TERM DEBTS (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of long-term debt instruments	June 30, December 31, 2017 2016 (In thousands) Term Loans (see table below): 6% Senior Secured Term Loan, due 2019, net of debt issuance costs $ - $ 29,214 6% Bridge Loan associated with the amended First Lien Term Loan, net of debt issuance costs 14,903 - 8.25% Second Lien Term Loan, net of debt issuance costs and debt discount 46,396 - 6% note payable to SOS Investment, LLC, due 2019 1,000 1,000 Notes payable - other 19 29 Total long-term debts: 62,318 30,243 Less: current portion (16) (17) Total long-term debts, net of current portion: $ 62,302 $ 30,226
Schedule of debt	At June 30, 2017 and December 31, 2016, the carrying amounts of the Term Loans were as follows: Unamortized Paid-in- Issuance Principal kind Costs & Debt Carrying Amount Interest Discount Amount June 30, 2017: Bridge Loan associated with the amended First Lien Term Loan, due September 2019 $ 15,000 $ 165 $ (262) $ 14,903 Second Lien Term Loan, due April 2021 80,000 1,176 (34,780) 46,396 Total: $ 95,000 $ 1,341 $ (35,042) $ 61,299 December 31, 2016: Senior Secured Term Loan, due 2019 $ 31,000 $ - $ (1,786) $ 29,214 Total: $ 31,000 $ - $ (1,786) $ 29,214
Schedule Of Interest Expenses	The components of interest expense are as follows (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest on term loans $ 330 $ 130 $ 847 $ 217 Interest on notes payable 15 9 29 9 Interest on convertible notes and debentures (1) - 329 - 881 Paid-in-kind interest on term loans 1,341 - 1,341 - Amortization of debt financing costs on term loans 1,495 193 1,622 220 Amortization of discount on term loans 3,473 1,608 3,588 2,276 Total: $ 6,654 $ 2,269 $ 7,427 $ 3,603 (1) These convertible notes and debentures including accrued interest were fully converted into the Company’s common stock upon closing of the Brushy merger on June 23, 2016.

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	During the six months ended June 30, 2017 and 2016, the Company was engaged in the following transactions with related parties: Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) More than 5% Shareholder: TRW Cash paid for Series B Preferred Stock offering fees and broker warrants to purchase up to 452,724 shares of common stock, at an exercise price of $1.30 per share, exercisable on or after September 17, 2016. $ - $ 500 Reinvested fee for 150 shares of Series B Preferred Stock and 68,182 warrants at exercise price of $2.50 per share. - 150 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 529 Cash paid for advance fee on Convertible Notes and the cash was reinvested in 350 shares of Series B Preferred Stock. - 350 Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. - 400 Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. 520 - Participated in private placement transaction on February 28, 2017 796 Sublet office space in New York to the Company for rent of $10,000 per month beginning January 1, 2017. 60 - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 17 - Total: $ 1,393 $ 1,929 Pierre Caland (Wallington Investment Holdings, Ltd) Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 273 $ 250 Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. - 300 Converted the holdings of Debentures entered into on December 29, 2015 into common stock upon the closing of the Brushy merger on June 23, 2016. - 2,090 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 125 Participated in private placement transaction on February 28, 2017 1,100 - Total: $ 1,373 $ 2,765 Bryan Ezralow Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 628 $ 1,300 Converted the holdings of Debentures entered into on December 29, 2015 into common stock through EZ Colony Partners, LLC owned by Bryan Ezralow upon the closing of the Brushy merger on June 23, 2016. - 1,540 Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 21 - Participated in private placement transaction on February 28, 2017 1,400 - Total: $ 2,049 $ 2,840 Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) Mark Ezralow Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 574 $ - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 18 - Participated in private placement transaction on February 28, 2017. 1,200 - Total: $ 1,792 $ - J. Steven Emerson Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 1,639 $ - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 30 - Participated in private placement transaction on February 28, 2017 2,500 - Total: $ 4,169 $ - Steve B. Dunn and Laura Dunn Revocable Trust dated 10/28/10 Converted the holdings of Debentures entered into on December 29, 2015 into common stock $ - $ 1,020 Total: $ - $ 1,020 Rosseau Asset Management Ltd Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 2,185 $ 1,028 Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 2 - Total: $ 2,187 $ 1,028 Investor Company Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 4,318 $ - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 23 - Total: $ 4,341 $ - Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) LOGiQ Capital (Front Street) Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. $ 3,199 $ - Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 1 - Total: $ 3,200 $ - Directors and Officers: Nuno Brandolini (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. $ - $ 150 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 100 Warrants exercised at $0.10 per share during the six months ended June 30, 2017. 4 - Total: $ 4 $ 250 General Merrill McPeak (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. $ - $ 250 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 250 Total: $ - $ 500 R. Glenn Dawson (Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. $ - $ 50 Participated in Series B Preferred Stock offering in 2016 and converted into common stock during the six months ended June 30, 2017. 130 - Total: $ 130 $ 50 Ronald D Ormand (Executive Chairman) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 through the Bruin Trust.(1) These notes were fully converted into common stock upon closing of the Brushy merger on June 23, 2016. $ - $ 1,150 Participated in Series B Preferred Stock offering in 2016 and converted into common stock in 2017 through Perugia Investment LP(2) during the six months ended June 30, 2017. 1,093 1,000 Converted shares of Series A Preferred Stock into common stock through Perugia Investment LP upon the closing of the Brushy merger on June 23, 2016. - 500 Warrants exercised at $0.10 per share during the six months ended June 30, 2017. 4 - Total: $ 1,097 $ 2,650 Six Months Ended June 30, Related Party Transactions 2017 2016 ($ in thousands) Abraham Mirman (former Chief Executive Officer and Director) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017 through The Bralina Group, LLC. (2) $ 1,803 $ 750 Participated in Series B Preferred Stock offering in 2016 and converted into common stock in 2017 through the Bralina Group, LLC. - 1,650 Converted shares of Series A Preferred Stock into common stock upon the closing of the Brushy merger on June 23, 2016. - 250 Total: $ 1,803 $ 2,650 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 $ - Golf tournament charges and telephone charges billed by MMZ Consulting, Inc and claimed through expense report 1 - Total: $ 204 $ - Kevin Nanke (former Chief Financial Officer) Participated in Convertible Notes maturing on June 30, 2016 and April 1, 2017. These notes were converted into the Company’s common stock upon the closing of the Brushy merger on June 23, 2016. $ - $ 100 Participated in Series B Preferred Stock offering in 2016 and converted into common stock in 2017 through KKN Holdings LLC during the six months ended June 30, 2017 219 200 Warrants exercised at $0.01 per share during the six months ended June 30, 2017. 4 - Purchased the DJ Basin properties from the Company through Nanke Energy, LLC on January 31, 2017. 2,000 - Total: $ 2,223 $ 300 (1) An irrevocable trust managed by Jerry Ormand, Mr. Ormand's brother, as trustee and whose beneficiaries are the adult children of Ronald Ormand. (2) Mr. Ormand has sole voting and dispositive power over the securities held by Perugia Investment LP. (3) 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)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Summary of warrant activity	Warrants Weighted- Outstanding at January 1, 2017 15,915,511 $ 3.34 Warrants issued in connection with private placement 2,597,420 4.50 Warrants issued to Heartland 160,714 3.50 Exercised, forfeited, or expired (6,150,600) (0.39) Outstanding at June 30, 2017 12,523,045 $ 4.59

SHARE BASED AND OTHER COMPENS29

SHARE BASED AND OTHER COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 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: Six Months Ended Six Months Ended Stock Restricted Total Stock Restricted Total Stock-based compensation expensed $ 3,273 $ 6,113 $ 9,386 $ 1,731 $ 10 $ 1,741 Unrecognized stock-based compensation costs $ 7,669 $ 2,094 $ 9,763 $ 3,050 $ 120 $ 3,170 Weighted average amortization period remaining 0.82 0.74 - 1.99 0.87 -
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	A summary of restricted stock grant activity pursuant to the 2016 Plan for the six months ended June 30, 2017 is presented below: Number of Weighted Outstanding at January 1, 2017 1,068,305 $ 1.55 Granted 1,313,845 $ 4.50 Vested and issued (821,580) $ (4.39) Forfeited (311,418) $ (4.61) Outstanding at June 30, 2017 1,249,152 $ 2.01 Restricted Stock Units A summary of restricted stock unit grant activity pursuant to the 2012 Plan for the six months ended June 30, 2017 is presented below. Number of Weighted Outstanding at January 1, 2017 149,584 $ 10.56 Vested and issued (139,585) 4.77 Cancelled or forfeited - - Outstanding at June 30, 2017 $ 9,999 $ 1.60
Schedule of Share-based Compensation, Stock Options, Activity	Stock Options Outstanding and Number Weighted Number Weighted Outstanding at January 1, 2017 5,956,833 $ 2.04 2,208,757 9.7 Granted 2,897,500 $ 4.72 - - Exercised (236,896) $ (1.34) - - Forfeited or cancelled (1,458,937) $ (2.95) - - Outstanding at June 30, 2017 7,158,500 $ 3.70 3,481,374 9.4

SUPPLEMENTAL NON-CASH TRANSAC30

SUPPLEMENTAL NON-CASH TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2017
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The following table presents the supplemental disclosure of cash flow information for the six months ended June 30, 2017 and 2016 (in thousands) SIX MONTHS ENDED JUNE 30, 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 $ 14,087 $ - Common stock issued for Brushy’s common stock - 6,942 Common stock issued for Series A Preferred Stock and accrued dividends - 8,221 Common stock issued for convertible debentures and accrued interests - 8,724 Common stock issued for convertible notes And accrued interest - 7,602 Warrants issued for fees associated with Series B 6% Preferred Stock - 7,880 Series B 6% Preferred Stock subscribed - 2,100 Commitment fees offset by issuance of common stock for Private Placement 250 - Fair value of warrants issued and repriced as debt discount 1,031 1,479 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 871 - Issuance of common stock for drilling services 96 - Deemed dividends on Series B 6% Convertible Preferred Stock associated with beneficial conversion features 3,767 - Fair value of derivative liabilities associated with conversion features of Second Lien Term Loan 36,741 -

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

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accrued bonus	$ 1,894	$ 0
Accrued drilling costs	2,407	1,331
Revenue Payable	3,310	1,313
Accrued costs related to divestiture of DJ Basin properties	584	0
Accrued payroll tax withholding	237	0
Other accrued liabilities	718	62
Total accrued expenses	$ 9,150	$ 2,706

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Details 1) - Sales Revenue, Net [Member]	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Concentration Risk [Line Items]
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Texican [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	82.00%	74.00%	80.00%	75.00%
Energy Transfer Inc. [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	17.00%	16.00%	20.00%	16.00%
Others [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	1.00%	10.00%	0.00%	9.00%

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Details 2) - shares		6 Months Ended	12 Months Ended
		Jun. 30, 2017	Dec. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		34,513,646	35,022,043
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		7,158,500	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		1,249,152	1,068,305
Stock Purchase Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	[1]	12,523,045	12,392,776
Conversion of Term Loan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		13,572,950	0
Series B Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		0	15,454,545
[1]	(1) Exclude 3,522,735 warrants exercisable at $0.01 per share as of December 31, 2016. There were no warrants exercisable at $0.01 per share as of June 30, 2017.

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jun. 14, 2017	Jan. 08, 2015
Summary Of Significant Accounting Policies [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 3.50	$ 25
Results of Operations, Impairment of Oil and Gas Properties	$ 0	$ 0	$ 0	$ 0
Accretion of asset retirement obligations	22,000	$ 3,000	$ 44,000	$ 6,000
Description Of Sale Reserves			25% or more
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			34,513,646		35,022,043
Deferred Revenue, Current	$ 3,300,000		$ 3,300,000		$ 1,300,000
Present Value of Future Insurance Profits, Percentage of Amortization Expense, Year One	10.00%		10.00%
Restricted Cash and Cash Equivalents	$ 600,000		$ 600,000
Warrant [Member]
Summary Of Significant Accounting Policies [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.01		$ 0.01		$ 0.01
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0	0	0
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Weighted Average Number Diluted Shares Outstanding Adjustment			0		3,522,735
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	0		0

OIL AND NATURAL GAS PROPERTIE36

OIL AND NATURAL GAS PROPERTIES & OIL AND NATURAL GAS PROPERTY ACQUISITIONS AND DIVESTITURES (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Unproved unevaluated acreage:
Beginning balance	$ 24,461	$ 0
Lease purchases	15,485	546
Assets acquired	0	23,915
Total unproved acreage	39,946	24,461
Wells in progress:
Beginning balance	7,453	0
Additions	11,260	7,453
Reclassification to evaluated properties	(7,411)	0
Total wells in progress and not subject to DD&A	$ 11,302	$ 7,453

OIL AND NATURAL GAS PROPERTIE37

OIL AND NATURAL GAS PROPERTIES & OIL AND NATURAL GAS PROPERTY ACQUISITIONS AND DIVESTITURES (Details Textual) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items]
Depreciation, Depletion and Amortization		$ 1,400	$ 500	$ 2,504	$ 562
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,38

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS (Details) $ / shares in Units, $ in Thousands	1 Months Ended
	Jun. 23, 2016USD ($)$ / sharesshares
Current Liabilities
Accounts 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
Accounts 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 obligations	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 Natural 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,39

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Net loss per common share basic and diluted	$ (0.62)	$ (4.99)	$ (1.07)	$ (6.78)
Weighted average shares outstanding: Basic and diluted	44,332,270	3,946,573	34,282,784	3,431,122
Brushy Resources, Inc [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Revenue		$ 1,808		$ 2,630
Net loss		$ (5,843)		$ (10,511)
Net loss per common share basic and diluted		$ (1.48)		$ (3.06)
Weighted average shares outstanding: Basic and diluted		3,946,573		3,431,122

MERGER WITH BRUSHY RESOURCES,40

MERGER WITH BRUSHY RESOURCES, INC. AND RELATED TRANSACTIONS (Details Textual)	1 Months Ended
	Jun. 23, 2016USD ($)shares	Jun. 14, 2017shares	Jan. 08, 2015shares
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares		160,714	22,500
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 INSTR41

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Apr. 26, 2017	Dec. 31, 2016
Recurring fair value measurements	$ (39,500)	$ (36,700)
Fair Value, Measurements, Recurring [Member]
Total recurring fair value measurements	(39,843)		$ (1,400)
Fair Value, Measurements, Recurring [Member] | Warrant liabilities [Member]
Recurring fair value measurements	(317)		(1,400)
Fair Value, Measurements, Recurring [Member] | Second Lien Term Loan Conversion Features [Member]
Recurring fair value measurements	(39,526)
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Total recurring fair value measurements	0		0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Warrant liabilities [Member]
Recurring fair value measurements	0		0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Second Lien Term Loan Conversion Features [Member]
Recurring fair value measurements	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Total recurring fair value measurements	0		0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Warrant liabilities [Member]
Recurring fair value measurements	0		0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Second Lien Term Loan Conversion Features [Member]
Recurring fair value measurements	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Total recurring fair value measurements	(39,843)		(1,400)
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Warrant liabilities [Member]
Recurring fair value measurements	(317)		$ (1,400)
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Second Lien Term Loan Conversion Features [Member]
Recurring fair value measurements	$ (39,526)

FAIR VALUE OF FINANCIAL INSTR42

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning	$ (1,400)	$ (285)
Issuance	(36,741)
Reversal of accrued bonus		223
Additional liability		(164)
Cashless exercise of warrants	371
Converted to equity		43
Change in fair value of derivative liabilities	(2,073)	(97)
Balance, Ending	(39,843)	(280)
Second Lien Term Loan Conversion Features [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning	0
Issuance	(36,741)
Cashless exercise of warrants	0
Change in fair value of derivative liabilities	(2,785)
Balance, Ending	(39,526)
Convertible Debenture Derivative Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning		(6)
Reversal of accrued bonus		0
Additional liability		0
Converted to equity		43
Change in fair value of derivative liabilities		(37)
Balance, Ending		0
Bristol/Heartland/SOS Warrant Liabilities [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning	(1,400)	(56)
Issuance	0
Reversal of accrued bonus		0
Additional liability		(164)
Cashless exercise of warrants	371
Converted to equity		0
Change in fair value of derivative liabilities	712	(60)
Balance, Ending	$ (317)	(280)
Incentive Bonus [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning		(223)
Reversal of accrued bonus		223
Additional liability		0
Converted to equity		0
Change in fair value of derivative liabilities		0
Balance, Ending		$ 0

FAIR VALUE OF FINANCIAL INSTR43

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	Mar. 14, 2017	Sep. 02, 2014	Jun. 23, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 14, 2017	Apr. 26, 2017	Dec. 31, 2016	Jan. 08, 2015
Fair Value Of Financial Instruments Textual [Abstract]
Derivative, Gain (Loss) on Derivative, Net				$ 0	$ (5,127)	$ 0	$ (5,127)
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 3.50			$ 25
Fair Value Adjustment of Warrants				300	$ 4
Derivative Liability				39,500		$ 39,500			$ 36,700
Debt Instrument Conversion Percentage						70.00%
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger						150.00%
Unrealized Gain (Loss) on Derivatives				2,800		$ 2,800
Class of Warrant or Right, Number of Securities Called by Warrants or Rights								160,714			22,500
Second Lien Term Loan [Member]
Fair Value Of Financial Instruments Textual [Abstract]
Derivative Liability				39,500		39,500
Bristol Capital, Llc [Member]
Fair Value Of Financial Instruments Textual [Abstract]
Shares Issued, Cashless Warrant Exercise	77,131
Fair Value Adjustment of Warrants						800
Increase (Decrease) in Derivative Liabilities						400
Derivative Liability				400		400
SOS Warrant [Member]
Fair Value Of Financial Instruments Textual [Abstract]
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 25
Warrants Issued To Related Parties			200,000
Derivative Liability				$ 300		300				$ 200
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value						200
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			200,000
Heartland warrant liability [Member]
Fair Value Of Financial Instruments Textual [Abstract]
Derivative, Gain (Loss) on Derivative, Net						$ 20
Consulting Agreement [Member]
Fair Value Of Financial Instruments Textual [Abstract]
Option To Purchase Common stock		100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 20
Warrants To Purchas Common Stock		100,000

LONG-TERM DEBTS (Details)

LONG-TERM DEBTS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Long-term debt	$ 62,318	$ 30,243
Less: current portion	(16)	(17)
Total long-term debts, net of current portion:	62,302	30,226
8.25% Second Lien Term Loan, net of debt issuance costs and debt discount
Long-term debt	46,396
Term Loan [Member] | 6% Senior Secured Term Loan, due 2019, net of debt issuance costs
Long-term debt	0	29,214
Term Loan [Member] | SOS Note [Member]
Long-term debt	1,000	1,000
Term Loan [Member] | 6% Bridge Loan associated with the amended First Lien Term Loan, net of debt issuance costs
Long-term debt	14,903	0
Term Loan [Member] | 8.25% Second Lien Term Loan, net of debt issuance costs and debt discount
Long-term debt	46,396	0
Convertible Debenture [Member] | Notes payable - other [Member]
Long-term debt	$ 19	$ 29

LONG-TERM DEBTS (Details 1)

LONG-TERM DEBTS (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Principal Amount	$ 95,000		$ 95,000		$ 31,000
Paid-in-Kind Interest	1,341	$ 0	1,341	$ 0	0
Unamortized Debt Issuance Costs & Debt Discount	(35,042)		(35,042)		(1,786)
Long-Term Debts	62,318		62,318		30,243
Bridge Loan [Member]
Principal Amount	15,000		15,000
Paid-in-Kind Interest			165
Unamortized Debt Issuance Costs & Debt Discount	(262)		(262)
Long-Term Debts	14,903		14,903
Second Lien Term Loan [Member]
Principal Amount	80,000		80,000
Paid-in-Kind Interest			1,176
Unamortized Debt Issuance Costs & Debt Discount	(34,780)		(34,780)
Long-Term Debts	$ 46,396		$ 46,396
Senior Secured Term Loan [Member]
Principal Amount					31,000
Paid-in-Kind Interest					0
Unamortized Debt Issuance Costs & Debt Discount					(1,786)
Long-Term Debts					$ 29,214

LONG-TERM DEBTS (Details 2)

LONG-TERM DEBTS (Details 2) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Interest on term loans		$ 330	$ 130	$ 847	$ 217
Interest on notes payable		15	9	29	9
Interest on convertible notes and debentures	[1]	0	329	0	881
Paid-in-kind interest on term loans		1,341	0	1,341	0	$ 0
Amortization of debt financing costs on term loans		1,495	193	1,622	220
Amortization of discount on term loans		3,473	1,608	3,588	2,276	$ 200
Interest expense		$ (6,654)	$ (2,269)	$ (7,427)	$ (3,603)
[1]	These convertible notes and debentures including accrued interest were fully converted into the Company’s common stock upon closing of the Brushy merger on June 23, 2016.

LONG-TERM DEBTS (Details Textua

LONG-TERM DEBTS (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 26, 2017	Sep. 29, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jun. 14, 2017	Apr. 24, 2017	Feb. 07, 2017	Jan. 08, 2015
Amortization of discount on term loans			$ 3,473,000	$ 1,608,000	$ 3,588,000	$ 2,276,000	$ 200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 3.50			$ 25
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 certain customary adjustments, 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 payable in cash at a rate of LIBOR plus 9% (subject to a 1% LIBOR floor).
Amortization of Deferred Charges			1,500,000		1,500,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights								160,714			22,500
Deferred Costs			1,600,000		1,600,000
Term Loan - Credit and Guarantee Agreement			$ 95,000,000		$ 95,000,000		31,000,000
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger					150.00%
Second Lien Credit Agreement [Member]
Debt Instrument, Interest Rate, Stated Percentage	8.25%
Line of Credit Facility, Maximum Borrowing Capacity	$ 125,000,000
SOSV Investment LLC [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 25		$ 25
Warrants Issued					200,000
Credit Agreement [Member] | Maximum [Member]
Loans Payable										$ 38,100,000
Credit Agreement [Member] | Minimum [Member]
Loans Payable										$ 31,000,000
Bridge Loan [Member]
Debt Instrument, Face Amount									$ 15,000,000
Debt Instrument, Description	The First Lien Credit Agreement, as amended by the First Lien Amendments, provides that the unpaid principal of the Bridge Loan 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 Loan will bear interest at a rate per annum of 6% compounded quarterly in arrears and payable only in-kind. The Bridge Loan matures on October 21, 2018, and may be repaid in whole or part at any time by the Company, subject to payment of certain specified prepayment premiums. The Bridge Loan is 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.
Take Back Loans [Member]
Debt Instrument, Description of Variable Rate Basis	LIBOR plus 9% (subject to a 1% LIBOR floor).
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	150.00%
Debt Instrument, Basis Spread on Variable Rate	9.00%
Second Lien Term Loan [Member]
Debt Instrument, Maturity Date	Apr. 26, 2021
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	110.00%
Second Lien Term Loan [Member] | Second Lien Credit Agreement [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 80,000,000
Delayed Draw Loans [Member] | Second Lien Credit Agreement [Member]
Line of Credit Facility, Maximum Borrowing Capacity	45,000,000
SOS Note [Member] | Term Loan [Member]
Debt Instrument, Face Amount				$ 1,000,000		$ 1,000,000
Debt Instrument, Interest Rate, Stated Percentage				6.00%		6.00%
Debt Instrument, Maturity Date Range, Start						Jun. 30, 2019
Term Loan - Credit and Guarantee Agreement				$ 500,000		$ 500,000
Credit and Guarantee Agreement [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			738,638		738,638
Additional Proceeds From Issuance Of Secured Debt					$ 7,100,000
Debt Instrument, Unamortized Discount							600,000
Line of Credit Facility, Commitment Fee Amount					$ 400,000
Repurchase of Warrants, Debt Instrument Unamortized Discount							$ 1,000,000
Credit and Guarantee Agreement [Member] | Maximum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights							$ 2.50
Credit and Guarantee Agreement [Member] | Minimum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights							$ 0.01
Credit and Guarantee Agreement [Member] | First Lein Term Loan [Member]
Repayments of Debt	$ 38,100,000
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

DERIVATIVES (Details Textual)

DERIVATIVES (Details Textual) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Apr. 26, 2017	Dec. 31, 2016
Derivative Liability	$ 39.5	$ 39.5	$ 36.7
Unrealized Gain (Loss) on Derivatives	2.8	2.8
SOS Warrant [Member]
Derivative Liability	$ 0.3	$ 0.3		$ 0.2

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands		1 Months Ended	6 Months Ended
		Jun. 15, 2016	Jun. 30, 2017	Jun. 30, 2016
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			$ 0	$ 16,095
Proceeds from Convertible Debt			0	2,863
Proceeds from Issuance of Private Placement			18,400	0
R. Glenn Dawson [Member]
Related Party Transaction [Line Items]
Proceeds from Convertible Debt			0	50
Proceeds from (Repayments of) Related Party Debt			130	50
Brennan Short [Member]
Related Party Transaction [Line Items]
Payment for Consulting Fees			203	0
Payments for Other Fees			1	0
Proceeds from (Repayments of) Related Party Debt			204	0
Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Private Placement		$ 20,000
Series B Preferred Stock [Member] | R. Glenn Dawson [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			130	0
Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Debt Conversion, Converted Instrument, Amount			0	8,221
Mark Ezralow [Member]
Related Party Transaction [Line Items]
Warrants Excercised			18	0
Proceeds from Issuance of Private Placement			1,200	0
Proceeds from (Repayments of) Related Party Debt			1,792	0
Mark Ezralow [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			574	0
J. Steven Emerson [Member]
Related Party Transaction [Line Items]
Warrants Excercised			30	0
Proceeds from Issuance of Private Placement			2,500	0
Proceeds from (Repayments of) Related Party Debt			4,169	0
J. Steven Emerson [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			1,639	0
Steven B. Dunn and Laura Dunn [Member]
Related Party Transaction [Line Items]
Proceeds from (Repayments of) Related Party Debt			0	1,020
Rosseau Asset Management Ltd [Member]
Related Party Transaction [Line Items]
Warrants Excercised			2	0
Proceeds from (Repayments of) Related Party Debt			2,187	1,028
Rosseau Asset Management Ltd [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			2,185	1,028
Investor Company [Member]
Related Party Transaction [Line Items]
Warrants Excercised			23	0
Proceeds from (Repayments of) Related Party Debt			4,341	0
Investor Company [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			4,318	0
LOGiQ Capital [Member]
Related Party Transaction [Line Items]
Warrants Excercised			1	0
Proceeds from (Repayments of) Related Party Debt			3,200	0
LOGiQ Capital [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			3,199	0
Convertible Debentures [Member] | Steven B. Dunn and Laura Dunn [Member]
Related Party Transaction [Line Items]
Debt Conversion, Converted Instrument, Amount			0	1,020
TRW
Related Party Transaction [Line Items]
Proceeds from Convertible Debt			0	400
Warrants Excercised			17	0
Proceeds from Issuance of Private Placement			796
Payments for Rent			60	0
Proceeds from (Repayments of) Related Party Debt			1,393	1,929
TRW | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			520	0
Commission Paid In Cash			0	500
Transaction Fee Paid Reinvestments by Related Party			0	150
Noninterest Expense Investment Advisory Fees			0	350
TRW | Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Conversion of Stock, Amount Converted			0	529
Wallington Investment Holdings [Member]
Related Party Transaction [Line Items]
Proceeds from Convertible Debt			0	300
Proceeds from Issuance of Private Placement			1,100	0
Proceeds from (Repayments of) Related Party Debt			1,373	2,765
Wallington Investment Holdings [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			273	250
Wallington Investment Holdings [Member] | Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Conversion of Stock, Amount Converted			0	125
Wallington Investment Holdings [Member] | Convertible Debentures [Member]
Related Party Transaction [Line Items]
Debt Conversion, Converted Instrument, Amount			0	2,090
Bryan Ezralow [Member]
Related Party Transaction [Line Items]
Warrants Excercised			21	0
Proceeds from Issuance of Private Placement			1,400	0
Proceeds from (Repayments of) Related Party Debt			2,049	2,840
Bryan Ezralow [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			628	1,300
Bryan Ezralow [Member] | Convertible Debentures [Member]
Related Party Transaction [Line Items]
Debt Conversion, Converted Instrument, Amount			0	1,540
Nuno Brandolini [Member]
Related Party Transaction [Line Items]
Proceeds from Convertible Debt			0	150
Warrants Excercised			4	0
Proceeds from (Repayments of) Related Party Debt			4	250
Nuno Brandolini [Member] | Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Conversion of Stock, Amount Converted			0	100
General Merrill McPeak [Member]
Related Party Transaction [Line Items]
Proceeds from Convertible Debt			0	250
Proceeds from (Repayments of) Related Party Debt			0	500
General Merrill McPeak [Member] | Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Conversion of Stock, Amount Converted			0	250
Ronald D Ormand [Member]
Related Party Transaction [Line Items]
Proceeds from Convertible Debt	[1]		0	1,150
Warrants Excercised			4	0
Proceeds from (Repayments of) Related Party Debt			1,097	2,650
Ronald D Ormand [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock	[2]		1,093	1,000
Ronald D Ormand [Member] | Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Conversion of Stock, Amount Converted			0	500
Abraham Mirman [Member]
Related Party Transaction [Line Items]
Proceeds from Convertible Debt	[2]		1,803	750
Proceeds from (Repayments of) Related Party Debt			1,803	2,650
Abraham Mirman [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			0	1,650
Abraham Mirman [Member] | Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Conversion of Stock, Amount Converted			0	250
Kevin Nanke [Member]
Related Party Transaction [Line Items]
Proceeds from Convertible Debt			0	100
Warrants Excercised			4	0
Purchase of Properties From Related Parties			2,000	0
Proceeds from (Repayments of) Related Party Debt			2,223	300
Kevin Nanke [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Proceeds from Issuance of Convertible Preferred Stock			$ 219	$ 200
[1]	An irrevocable trust managed by Jerry Ormand, Mr. Ormand's brother, as trustee and whose beneficiaries are the adult children of Ronald Ormand
[2]	Mr. Ormand has sole voting and dispositive power over the securities held by Perugia Investment LP.

RELATED PARTY TRANSACTIONS (D50

RELATED PARTY TRANSACTIONS (Details) (parenthetical) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 14, 2017	Jan. 08, 2015
Related Party Transaction [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		160,714	22,500
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 3.50	$ 25
Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Shares, New Issues	0
T.R. Winston Company, LLC [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.01
Operating Leases, Rent Expense, Minimum Rentals	$ 10,000
T.R. Winston Company, LLC [Member] | Series B Purchase Agreement [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	452,724
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.30
T.R. Winston Company, LLC [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Shares, New Issues	150
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	68,182
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 2.50
T.R. Winston Company, LLC [Member] | Series B Preferred Stock One [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Shares, New Issues	350
Bryan Ezralow [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.01
Kevin Nanke [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.01
Nuno Brandolini [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.10
Ronald D Ormand [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.10
Mark Ezralow [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.01
J. Steven Emerson [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.01
Rosseau Asset Management Ltd [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.01
Investor Company [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.01
LOGiQ Capital [Member]
Related Party Transaction [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.01

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Begining | shares	15,915,511
Warrants issued in connection with private placement | shares	2,597,420
Warrants Issued To Heartland | shares	160,714
Exercised, forfeited, or expired | shares	(6,150,600)
Outstanding Ending | shares	12,523,045
Weighted Average Exercise Price, Outstanding Begining | $ / shares	$ 3.34
Weighted Average Exercise Price, Warrants issued in connection with private placement | $ / shares	4.5
Warrants issued to Heartland | $ / shares	3.50
Weighted Average Exercise Price, Exercised, forfeited, or expired | $ / shares	(0.39)
Weighted Average Exercise Price, Outstanding Ending | $ / shares	$ 4.59

SHAREHOLDERS' EQUITY (Details T

SHAREHOLDERS' EQUITY (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended				3 Months Ended		6 Months Ended
	Apr. 25, 2017	Feb. 28, 2017	Jun. 15, 2016	Aug. 31, 2014	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 14, 2017	May 02, 2017	Mar. 31, 2017	Dec. 31, 2016	Jan. 08, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights									$ 3.50				$ 25
Proceeds from Issuance of Private Placement							$ 18,400	$ 0
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									160,714				22,500
Additional Common Stock Shares Authorized										50,000,000
Common Stock, Shares Authorized					150,000,000		150,000,000				100,000,000	150,000,000
Redeemable Preferred Stock Dividends And Deemed Dividend					$ 0	$ 137	$ 0	$ 287
Redeemable Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred Stock, Shares Issued				2,000
Preferred Stock, Shares Authorized				2,000
Preferred Stock, Dividend Rate, Percentage				6.00%
Series B Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues							0
Proceeds from Issuance of Private Placement			$ 20,000
Preferred Stock Value Stated Rate					$ 1,000		$ 1,000					$ 1,000
Preferred Stock, Shares Issued												16,828
Preferred Stock, Shares Authorized					20,000		20,000					20,000
Preferred Stock, Dividend Rate, Percentage	6.00%		6.00%
Conversion Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion	14,300,000
Redeemable Preferred Stock Dividends And Deemed Dividend					$ 4,400		$ 4,600
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues							5,194,821
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
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
Purchase Of Common Stock Shares By Warrants Issued							2,597,420
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 COMPENS53

SHARE BASED AND OTHER COMPENSATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed	$ 9,386	$ 1,741
Unrecognized stock-based compensation costs	$ 9,763	$ 3,170
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	$ 3,273	$ 1,731
Unrecognized stock-based compensation costs	$ 7,669	$ 3,050
Weighted average amortization period remaining	9 months 25 days	1 year 11 months 26 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed	$ 6,113	$ 10
Unrecognized stock-based compensation costs	$ 2,094	$ 120
Weighted average amortization period remaining	8 months 26 days	10 months 13 days

SHARE BASED AND OTHER COMPENS54

SHARE BASED AND OTHER COMPENSATION (Details 1)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Restricted Stock [Member]
Number of Shares, Outstanding at January 1, 2017 | shares	1,068,305
Number of Shares, Granted | shares	1,313,845
Number of Shares, Vested and issued | shares	(821,580)
Number of Shares, Cancelled or forfeited | shares	(311,418)
Number of Shares, Outstanding at June 30, 2017 | shares	1,249,152
Weighted Average Grant Date Price, Outstanding at January 1, 2017 | $ / shares	$ 1.55
Weighted Average Grant Date Price, Granted | $ / shares	4.50
Weighted Average Grant Date Price, Vested and issued | $ / shares	(4.39)
Weighted Average Grant Date Price, Cancelled or forfeited | $ / shares	(4.61)
Weighted Average Grant Date Price, Outstanding at June 30, 2017 | $ / shares	$ 2.01
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, Cancelled or forfeited | shares	0
Number of Shares, Outstanding at June 30, 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	4.77
Weighted Average Grant Date Price, Cancelled or forfeited | $ / shares	0
Weighted Average Grant Date Price, Outstanding at June 30, 2017 | $ / shares	$ 1.60

SHARE BASED AND OTHER COMPENS55

SHARE BASED AND OTHER COMPENSATION (Details 2) - $ / shares	1 Months Ended	6 Months Ended	12 Months Ended
	Jun. 16, 2017	Jun. 30, 2017	Dec. 31, 2016
Number of Options, Forfeited or cancelled	(250,000)
Equity Option [Member]
Outstanding Begining		5,956,833
Number of Options, Granted		2,897,500
Number of Options, Exercised		(236,896)
Number of Options, Forfeited or cancelled		(1,458,937)
Outstanding Ending		7,158,500	5,956,833
Weighted Average Exercise Price, Outstanding Begining		$ 2.04
Weighted Average Exercise Price, Granted		4.72
Weighted Average Exercise Price, Exercised		(1.34)
Weighted Average Exercise Price, Forfeited or cancelled		(2.95)
Weighted Average Exercise Price, Outstanding Ending		$ 3.70	$ 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		3,481,374	2,208,757
Stock Options Outstanding and Exercisable Weighted Average Remaining Contractual Life (Years)		9 years 4 months 24 days	9 years 8 months 12 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 COMPENS56

SHARE BASED AND OTHER COMPENSATION (Details Textual) - USD ($)	1 Months Ended		6 Months Ended
	Jun. 16, 2017	Dec. 31, 2016	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	250,000
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost	$ 500,000
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			2,897,500
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 2.62
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			100.50%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period			1,458,937
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options			$ 7,700,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			9 months 25 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			1,313,845
Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			2,147,500
Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	750,000	500,000
Deferred Compensation Arrangement with Individual, Distribution Paid	$ 87,922
Executive Officer [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	389,657
Minimum [Member] | Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			1.21%
Maximum [Member] | Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			1.45%

SUPPLEMENTAL NON-CASH TRANSAC57

SUPPLEMENTAL NON-CASH TRANSACTIONS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Non-cash investing and financing activities excluded from the statement of cash flows:
Common Stock Issued	$ 14,087	$ 0
Commitment fees offset by issuance of common stock for Private Placement	250	0
Fair value of warrants issued and repriced as debt discount	1,031	1,479
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	871	0
Issuance of common stock for drilling services	96	0
Fair value of derivative liabilities associated with conversion features of Second Lien Term Loan	36,741	0
Convertible Debentures And Accrued Interest [Member]
Non-cash investing and financing activities excluded from the statement of cash flows:
Common Stock Issued	0	8,724
Convertible Notes and Accrued Interest [Member]
Non-cash investing and financing activities excluded from the statement of cash flows:
Common Stock Issued	0	7,602
Brushy's common stock [Member]
Non-cash investing and financing activities excluded from the statement of cash flows:
Common Stock Issued	0	6,942
Series A Preferred Stock [Member]
Non-cash investing and financing activities excluded from the statement of cash flows:
Common Stock Issued	0	8,221
Series B Preferred Stock [Member]
Non-cash investing and financing activities excluded from the statement of cash flows:
Common Stock Issued	0	7,880
Deemed dividends on Series B 6% Convertible Preferred Stock associated with beneficial conversion features	3,767	0
Preferred Stock Subscribed	$ 0	$ 2,100

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - USD ($)	Aug. 03, 2017	Mar. 31, 2017
Subsequent Event [Line Items]
Severance Costs		$ 700,000
Subsequent Event [Member] | Chief Executive Officer And Director [Member]
Subsequent Event [Line Items]
Severance Costs	$ 1,000,000
Separation And Consulting Agreement For Services, Description	Pursuant to the terms of the Mirman Agreement, in satisfaction of any and all obligations under his employment agreement, and provided that Mr. Mirman does not exercise his right to revoke the Mirman Agreement within eight days of its execution, Mr. Mirman will receive the following severance payments, subject to applicable employer and employee withholding by the Company: (1) accrued benefits (including base salary, vacation pay and reimbursements) that are unpaid as of the Separation Date, (2) a lump-sum cash payment of $1,000,000, (3) premium payments for continuing COBRA coverage for 18 months or until Mr. Mirman obtains alternative coverage, whichever is earlier, and (4) reimbursement of reasonable attorneys’ fees incurred in connection with his separation. Any unvested shares of restricted stock or unvested stock options which were previously awarded to Mr. Mirman will vest on August 12, 2017.