Lilis-Salt Creek Agreement For Crude Takeaway At Magellan East Houston Price

August 9, 2018

 

A new sales agreement has been reached between Lilis Energy Inc. and an affiliate of Salt Creek Midstream for pipeline takeaway capacity and pricing.

The deal includes 6,000 barrels per day of crude on a long-haul to Corpus Christi starting July 1st 2019.

And it includes a 5,000 bpd contract continuing from July 1 2020 through June 30 2024, Lilis said.

Salt Creek has agreed to purchase the crude from Lilis at a specified Magellan East Houston price with a fixed “differential basis,” providing price relief vs. current market conditions.

Lilis said it will continue trucking crude through the construction period of the pipeline, which is expected to be in service by the first quarter of next year.

This agreement follows a crude oil gathering agreement entered into between the companies in May 2018 for a new regional pipeline system and gathering and transportation service for Lilis’ oil production to a terminal in Winkler County.

The Winkler Terminal will allow Lilis to directly access multiple pipelines.