Drilling Program - Wells | Drilling Activity

Ring Drills Six New San Andres Wells; Reports IP Rates from CBP

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Ring Energy, Inc. released a mid-quarter operations update for the third quarter of 2019.

In the first 47 days ended August 16, 2019, the Company drilled six new 1-mile horizontal San Andres wells on its Northwest Shelf property. Of the six wells drilled, two were waiting on completion and four were drilled, completed and are in the process of being tested. Initial results are indicating BOEPD rates ranging between 400 and 500 BOEPD.

Q2 Wells Completed - IP Rates Reported

In the operations update for the second quarter of 2019, the Company announced it had drilled thirteen new horizontal San Andres wells, seven on its Central Basin Platform asset, and six on its NWS asset. Of the thirteen drilled, four (2 CBP / 2 NWS) were waiting on completion and seven (5 CBP / 2 NWS) were drilled, completed and in varying stages of testing. Of the four waiting on completion, two (1 CBP / 1 NWS) have been completed and are showing very encouraging results of approximately 360 BOEPD and 320 BOEPD.

The other two (1 CBP / 1 NWS) are newly completed and are in testing. Of the seven new wells that had been drilled, completed and were in varying stages of testing, BOEPD rates are running from 265 BOEPD to 528 BOEPD with an average of approximately 400 BOEPD. Management noted that all the wells cited above are in the final stages of testing and have yet had their Initial Potentials (IP's) filed.

Danny Wilson, Ring's Executive Vice President and Chief Operating Officer, commented, "We have finished drilling all six wells for the third quarter. In addition, we have performed a number of rod conversions and workovers that will not only improve production but reduce future LOE costs and dramatically lower future pulling costs by up to 80%. Our price differential for oil is currently +/- $3.00 and appears to be trending lower through the end of the year. All associated costs and timing for completions are on schedule. The third quarter CAPEX is in line with our announced budget. With our one-rig drilling program in place, we maintain our focus on showing continued annual production growth and attaining cash flow neutrality by year end."