Ring Energy, Inc. Announces Fourth Quarter and Year End 2015 Operations Update
Ring Energy, Inc. (NYSE MKT: REI) (“Ring”) (“Company”) today announced
its operations update for the fourth quarter and year end of 2015. In
the last three months of 2015, the Company drilled and placed into
production three new development wells on its Central Basin properties.
For the full year of 2015, the Company drilled eight new development
wells on its Central Basin properties, re-completed five existing wells
from the Glorieta to the San Andres formation and re-fraced three
additional wells. On its Delaware Basin property, the Company drilled
one new development well, while focusing on infrastructure improvements.
Net production for the quarter ended December 31, 2015, was
approximately 218,500 BOEs (Barrel of Oil Equivalent), as compared to
net production of 155,100 BOEs for the same quarter in 2014, a 40.9%
increase, and as compared to 204,000 BOEs for the third quarter 2015, an
increase of approximately 7.1 %. The average estimated price received
per BOE in the fourth quarter 2015 was $35.50. December 2015 average net
daily production was approximately 2,335 BOEs, as compared to average
net daily production of 1,865 BOEs in December 2014, an increase of
25.2%. During the month of December, management estimates the Company
lost approximately 13,000 net BOEs due to inclement weather and the
Ramsey Gas Plant explosion near Orla, Texas. Total production for 2015
was approximately 742,070 BOEs compared to 482,750 BOEs for 2014, a
53.7% increase.
Mr. Kelly Hoffman, Ring’s Chief Executive Officer, stated, “As current
commodity prices remain depressed, our focus has been, and will continue
to be, improving the overall operations on our existing properties.
Since closing our Delaware Basin acquisition in June 2015, we have
dramatically improved the operating efficiencies and production by
evaluating each existing well and making the necessary infrastructure
improvements and equipment changes that allow for increased pumping
capacity resulting in greater production volumes. In the first quarter
of 2016 we plan to drill one new development well on our Central Basin
property and to continue making improvements on both properties which
will add value through increased production and reduced operating costs.
Based on recent commodity prices, all of this activity will be financed
by existing cash flow and current cash balances. We continue to be
patient and have the benefit of a strong balance sheet. We remain
flexible and are able to react quickly should an opportunity to acquire
an asset that immediately adds value and is accretive at today’s strip
prices become available. We are realistic but remain hopeful that in the
not-too-distant future we can start the drilling rigs working and resume
our development program.”
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development and
production company with current operations in Texas and Kansas.
www.ringenergy.com
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,
2014, its Form 10-Q for the quarter ended September 30, 2015 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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Copyright Business Wire 2016
Source: Business Wire
(January 11, 2016 - 4:05 PM EST)
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