Ring Energy, Inc. Acquires over 33,000 Acres in Central Basin Platform
Ring Energy, Inc. (NYSE MKT: REI) (“Company”)(“Ring”) announced today
that it has acquired approximately 33,000 undeveloped acres in Gaines
County, Texas, for an approximate purchase price of $16,600,000
($500/acre). The Company will pay for the acreage with surplus capital
received from a December 2016 public stock offering.
The entire acreage is located in an area that the Company has targeted
for its horizontal drilling and development program, with more than 50%
of the 33,000 acres contiguous to Ring’s existing Central Basin Platform
(“CBP”) leases. The Company will have a 100% working interest and a net
revenue interest of 75%.
Mr. Kelly Hoffman, CEO of Ring, stated, “Since announcing our interest
in implementing a horizontal drilling program in April 2016, our staff
has been extremely active in identifying and securing assets in an area
we now call our 'horizontal footprint.' This project alone has taken
over six months to complete. In the past 12 months we have grown our
'footprint' from 8,000 net acres to over 63,000 net (87,000 gross)
acres, representing over 600 net (825 gross) potential horizontal
drilling locations. Our drilling inventory is such that we can stay very
busy for a number of years even if we choose to accelerate the program
by adding additional rigs.”
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,
2016 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 2017
Source: Business Wire
(April 17, 2017 - 8:45 AM EDT)
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