Ring Energy, Inc. Provides First Quarter 2014 Operations Update
April 22 2014 - 9:30AM
Business Wire
2014 Capital Expenditure Budget Increased to
$115 Million
Ring Energy, Inc. (NYSE MKT: REI) (“Ring”) (“Company”) today
announced its operations update for the first quarter of 2014. In
the first three months of 2014, Ring drilled 24 development wells
on their Texas properties, 15 of which were completed and placed in
production by March 31, 2014. The remaining nine development wells
are in varying stages of completion and will be placed in
production in the second quarter. In addition, the Company
performed one re-completion in the first quarter of 2014. The
Company 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 March 31, 2014 was approximately
69,650 BOEs (Barrel of Oil Equivalent), as compared to net
production of 14,088 BOEs for the same quarter in 2013, a 394%
increase. March 2014 average net daily production was approximately
900 BOEs, as compared to daily production of 127 BOEs in March
2013, an increase of 609%.
Ring management reconfirmed the initiation of their joint
venture pilot drilling program in Kansas. The Company intends on
drilling the first five wells of a ten well program, evaluate the
information and release their findings by mid-June.
The Company also announced it has increased its capital
expenditure budget for 2014 to $115 million. The increase is due to
the acceleration of its current development program and on-going
leasing and acquisition activity. The budget includes the drilling
of a minimum of 130 development wells, multiple workovers and
re-stimulations of existing wells on their Texas acreage, continued
leasing activity, infrastructure additions and improvements. The
budget will be funded by cash on hand, increasing cash flow from
operations and current credit facility. Management has stated that
should a decision be made to further accelerate its current
development program in Texas, initiate a full-scale development
program in Kansas based on the results of the ten well pilot
program or have the opportunity to make an acquisition of size that
would complement the Company’s current assets, they would consider
going back to the equity market under favorable conditions.
Mr. Kelly Hoffman, Ring’s Chief Executive Officer, stated, “We
feel we lost the equivalent of one week’s production in the first
quarter because of weather related setbacks in January. That being
said, we are extremely pleased with the results of the first
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 properties and as we drill these wells we will not only
increase production and cash flow, but add new reserves as
well.”
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, 2013. 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.
K M Financial, Inc.Bill Parsons, 702-489-4447