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Ring Completes Q1-2016 Production Up 58%

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   |    Wednesday,April 13,2016

Ring Energy, Inc. announced its operations update for the first quarter of 2016. In the first three months of 2016, the Company drilled and completed one new vertical development well on Ring’s Central Basin Platform asset.

In addition, the Company upgraded their salt water disposal systems at both the Central Basin Platform and Delaware Basin properties.

Production Results

As a result, net production for the quarter ended March 31, 2016 was approximately 225,500 BOEs (Barrel of Oil Equivalent), as compared to net production of 141,920 BOEs for the same quarter in 2015, a 58.9% increase, and net production of 218,500 for the fourth quarter of 2015, a 3.2% increase. March 2016 average net daily production was approximately 2,370 BOEs, as compared to daily production of 1,615 BOEs in March 2015, an increase of 46.7%. The average estimated price received per BOE in the first quarter 2016 was $26.24.

Equity Financing

On April 21, 2016 the company issued 10,000,000 shares hoping to raise $53 million.  The company said the funds will be used to fund drilling activities.

Kelly Hoffman, Ring’s Chief Executive Officer, stated, “Our staff has done an excellent job as we continue to upgrade our infrastructures in both the Central Basin Platform and Delaware Basin. Despite the fact we drilled only one new development well, our net production increased over the previous quarter. This modest increase in production, despite only drilling one new well, demonstrates the low decline nature of our production profile, as well as continued operational improvements in the field. As we shared with you in our 2015 fourth quarter and year-end financial release and subsequent conference call, we have continued to study and evaluate the successful horizontal operations by surrounding producers in select areas. Based on the results they are experiencing, we are very excited about the potential we have to include a horizontal program in both of our core areas, even in today’s pricing environment, and are currently exploring how to implement those horizontal techniques to exploit our assets. ”