Ring Energy acquires 33,000 Acres IN CBP

Ring Energy announced that it has acquired 33,000 acres in Gaines County, Texas for an  purchase price of $16,600,000 ($500/acre).

The Company will pay for the acreage with surplus capital received from a December 2016 public stock offering. The entire acreage is located in an area that the Company has targeted for its horizontal drilling and development program, with more than 50% of the 33,000 acres contiguous to Ring’s existing Central Basin Platform (“CBP”) leases. The Company will have a 100% working interest and a net revenue interest of 75%.

Ring CEo, Mr. Kelly Hoffman stated that since announcing their interest in implementing a horizontal drilling program in April 2016, their staff has been extremely active in identifying and securing assets in an area they now call Rings “horizontal footprint”. This project alone has taken over six months to complete. In the past twelve months they have grown their “footprint” from 8,000 net acres to over 63,000 net (87,000 gross) acres, representing over 600 net (825 gross) potential horizontal drilling locations. Their drilling inventory is such that they can stay very busy for a number of years even if they choose to accelerate the program by adding additional rigs.