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Rates Of Return
Central Basin
  Economics : Rates of Return/ IRR

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Central Basin Well Economics & Type Curve San Andres Curve Parameters 40/Boe Realized Price (1.0 mile lateral) Oil Gas Peak Rate 305 BOPD 95 MCFPD Average D&C Cost 1.8MM Initial Decline 96.5 96.5 B Factor 1.8 1.8 Average Cost per Final Decline 5 5 107k(1) Location D&C Cost + Acreage 1.9MM Cost per Location Rod Conversion Cost 250k(2) Net EUR at 75% NRI 337 (MBoe) F&D (/Boe) 5.64 LOE (/Boe)(3)(4) 6.83 F&D + LOE (/Boe) 12.47 Net Realized Price Received (/Boe) Fully Loaded 35.00 40.00 45.00 Net Returns(2)(5)(7) Net Returns(2)(6)(7) IRR (%) 46% 65% 89% Discounted Net ROI 2.4x 2.3x Years to Payout 2.2 1.7 1.4 Undiscounted Net ROI 5.0x 4.8x ROI Disc 2.03x 2.37x 2.71x ROI Undisc 4.22x 4.98x 5.75x Net IRR 65% 58% PV-10 (000s) 2,077 2,773 3,469 Net EUR (MBOE) 335 337 338 (1) 1,000 / acre times 640 acres 1 bench 107K per location based on 6 wells per section (2) Includes conversion cost from ESP to rod pump after 12 months of production (3) LOE includes 4,400 per month for first 12 months from peak then 1,100 per month plus 2.35/Bbl of oil plus 0.40/Mcf of gas plus 0.11/Bbls of water (4) LOE Expense over the life of well divided by Net BOE EUR over life of the well (5) Excludes location acreage cost (6) Includes location acreage cost (7) Economics based on a gross lateral length of 5,080 Note: Assumes 40/Boe realized price received www.ringenergy.com NYSE American: REI 14
Ring Energy Inc.
October 2020

Targeted Acreage in the Best Basin Clearfork Permian Basin Attributes Upper Spraberry Tremendous oil in place Lower Long history of oil production Spraberry Multi-stack horizontal targets 4,500 gross ft of prospective zones Dean Upper Infrastructure and takeaway capacity Wolfcamp Industry knowledgeable State and mineral owners Middle Wolfcamp Basin Single-Well Returns1 35% Lower Wolfcamp 30% 25% ROR Canyon 20% Penn Shale 15% Cline 10% 5% Strawn 0% Atoka Barnett Woodford 1 Credit Suisse data based on strip pricing as of 2/19/15 6
Laredo Petroleum Inc.
April 2015

TRANSACTION HIGHLIGHTS Core Midland Basin acreage Location, Multiple-zone potential with significant calculated oil-in-place, higher Location, reservoir pressure and favorable thermal maturity Location Close proximity to Callons existing Carpe Diem and Pecan Acres fields Addition of 188 gross locations from de-risked Wolfcamp B, and Lower Expansion of and Middle Spraberry zones Horizontal Inventory(a) Incremental 250+ gross locations from Wolfcamp A, Cline, Clearfork and Jo Mill zones being delineated by industry Immediately integrate acquisition into the accelerated three-rig drilling plan Catalyst for Currently target approximately 40 gross operated horizontal wells for Meaningful completion in 2015, with potential for incremental activity Acceleration Pull-forward of cash flow from high return projects increases net asset value accretion 18,062 net surface acres / 100,090 net effective acres in de-risked horizontal fairway (over 80% in Midland Core) Increased Permian Size and 2Q14E net production of 6,745 Boe/d Scale 1,097 pro forma gross locations(a) (50% in currently targeted Callon zones) (Pro Forma Metrics) Leverage established team and operational capacity to drive cost efficiencies and enhance returns on capital a. Gross locations as of June 30, 2014. Total net pro forma locations of 772. 7
Callon Petroleum Co.
September 2014
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