Ring Energy, Inc. Signs Purchase and Sale Agreement with Wholly Owned Subsidiary of The Carlyle Group L.P.
Company Acquires Premium Acreage in Andrews County
Ring Energy, Inc. (NYSE American: REI) (“Company”) (“Ring”) announced
today that it has entered into a Purchase and Sale Agreement with
Tessara Petroleum Resources, a wholly owned subsidiary of The Carlyle
Group L.P. (NASDAQ: CG) (“Carlyle”), to acquire assets located in
Andrews County, Texas for 2,623,948 shares of common stock of the
Company valued at $5.80 per share. The closing date of the transaction
will be prior to year-end 2018, with an effective date of November 1,
2018.
The assets consist of 4,763 net acres. Ring will be the operator, have a
100% working interest and 75% net revenue interest. The acreage is in,
around and contiguous to the Company’s core assets on the Central Basin
Platform (“CBP”) and offsets the majority of the Company’s top producing
wells. Management estimates that this acquisition, in combination with
additional smaller surrounding leases the Company has acquired, will add
5,313 net acres and 55 new gross horizontal drilling locations.
A spokesperson for Carlyle commented, “We are pleased to enter into this
transaction with Ring Energy and its management team. We have chosen to
receive consideration in the form of stock as we believe Ring is a
best-in-class operator and the assets being transferred are synergistic
with Ring’s existing properties that lie just across the lease line. We
are fortunate to have found a partner that we admire and trust and look
forward to seeing Ring increase its scale and value over time.”
Mr. Kelly Hoffman, CEO of Ring stated, “We have continued to look for
acquisitions that will complement our existing properties and be
immediately accretive. We have been working on acquiring the Carlyle
property for over six months. This acquisition lies within the sweet
spot of our core CBP operations. This, along with the additional leases
we have acquired, based on the one-rig drilling program previously
announced, adds over two years of new drilling locations to our current
inventory. These additional locations could potentially add as much as
$180 million of PV-10 value, or approximately $2.85 per share, at a
realized price of $45 per BOE even after the issuance of the transaction
shares.”
SunTrust Robinson Humphrey acted as financial advisor to Ring.
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development and
production company with current operations in Texas.
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,
2017, its Form 10-Q for the quarter ended September 30, 2018 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 2018
Source: Business Wire
(December 20, 2018 - 4:05 PM EST)
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