Ring Energy, Inc. (NYSE MKT: REI) (“Ring”) (“Company”) today announced
its operations update for the second quarter of 2014. During the second
quarter, Ring drilled 36 development wells and one salt water disposal
well on their Texas properties, 27 of which were completed and placed in
production by June 30, 2014. The remaining nine development wells are in
varying stages of completion and will be placed in production in the
third quarter. On June 30th, the Company drilled its 100th
new development well since commencing drilling operations in June 2013
and continues to have a 100% success rate on development wells drilled
on their Texas acreage.
As a result of the continuing development program, net production for
the quarter ended June 30, 2014 was approximately 118,000 BOEs (Barrel
of Oil Equivalent), as compared to net production of 19,000 BOEs for the
same quarter in 2013, a 521% increase, and net production of 69,650 BOEs
for the first quarter 2014, a 69% increase. June 2014 average net daily
production was approximately 1,535 BOEs.
In June, the Company received approximately $30 million in gross
proceeds from the private sale of 2,000,000 shares of the Company’s
common stock to institutional investors. The funds will be used to
accelerate the leasing activity and development of the Company’s Permian
assets. The Company has announced its intention to add a third drilling
rig late in the third quarter or early fourth quarter of this year. Ring
management also announced it has entered into a new five-year senior
secured revolving credit facility with SunTrust Robinson Humphrey, Inc.
as the lead arranger. The new facility has a maximum borrowing amount of
$150,000,000 with an initial borrowing base of $40,000,000.
The Company continues to aggressively lease additional acreage in Texas,
adding to its core area of development. As of June 30, 2014, Ring had
20,747 gross acres (13,385 net), as compared to 10,848 gross acres
(7,449 net) as of June 30, 2013, an increase of 91%.
On October 17, 2013, the Company announced a joint development agreement
with Torchlight Energy Resources, Inc. to develop all of Ring’s existing
Kansas leasehold of approximately 17,000 acres with Ring being the
operator. In late February 2014 drilling operations began on the first
phase of the development program. Four wells have been drilled. Of the
four wells drilled, three have production casing set with two currently
producing and the third pending further evaluation. The fourth well was
a dry hole and has been plugged. After the first two months of initial
production, the current combined gross daily production of the two
producing wells is approximately 45 BOEs. After evaluation of the first
phase results, management is encouraged and preparations are being made
to start the second phase in early to mid-August.
Mr. Kelly Hoffman, Ring’s Chief Executive Officer, stated, “We are
extremely pleased with the results of the second quarter. We continue to
execute our development plan and add acreage to our core properties
while continuing to seek acquisition opportunities. We now have two
full-time drilling rigs working on our Texas acreage and are considering
a third rig before year end. We are preparing to launch the second phase
of the pilot development program in Kansas in August. We will continue
to monitor our results then re-evaluate our CAPEX budget for the
remainder of 2014.”
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development and
production company with current operations in Texas and Kansas.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of
the “safe-harbor” provisions of the Private Securities Litigation Reform
Act of 1995 that involve a wide variety of risks and uncertainties,
including, without limitations, statements with respect to the Company’s
strategy and prospects. Such statements are subject to certain risks and
uncertainties which are disclosed in the Company’s reports filed with
the SEC, including its Form 10-K for the fiscal year ended December 31,
2013, its Form 10-Q for the quarter ended March 31, 2014 and its other
filings with the SEC. Readers and investors are cautioned that the
Company’s actual results may differ materially from those described in
the forward-looking statements due to a number of factors, including,
but not limited to, the Company’s ability to acquire productive oil
and/or gas properties or to successfully drill and complete oil and/or
gas wells on such properties, general economic conditions both
domestically and abroad, and the conduct of business by the Company, and
other factors that may be more fully described in additional documents
set forth by the Company.
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