MIDLAND, Texas--(BUSINESS WIRE)--Ring Energy, Inc. (NYSE American: REI) (“Ring”) (“Company”) announced today it has increased its drilling and operational capital expenditure budget (“CAPEX”) for 2017 to approximately $120 million.
Based on the continuing positive results of the Company’s horizontal drilling program, the majority of the Company’s revised budget will be allocated to Ring’s Central Basin Platform (“CBP”). Management had previously announced a preliminary 2017 CAPEX budget in November 2016 of approximately $70 million which included the drilling of up to 22 new horizontal wells, and in July 2017, the extension of the contract on the current drilling rig through year-end 2017. Under the revised CAPEX budget, the Company plans to add a second drilling rig in mid-August 2017. Management estimates that under the two rig program, the Company will drill approximately 20 additional new horizontal wells in 2017 on its CBP asset, bringing the estimated total of new horizontal wells to be drilled in 2017 on its CBP asset to approximately 42.
Also scheduled on the CBP for 2017 is the continued upgrading of existing infrastructure which would include the drilling of additional salt water disposal wells in support of the Company’s ongoing development and expansion of its horizontal drilling program. In addition, the Company plans on drilling up to two new vertical science/information wells in the northern sector of the recently acquired (April 2017) acreage in Gaines County, Texas.
Mr. Kelly Hoffman, Ring’s Chief Executive Officer, stated, “With the recent completion of our public stock offering, the current improvement in commodity prices, and the continuing positive results from our current horizontal drilling and development program on our CBP asset, we have decided to add a second rig in mid-August. We continue to work very hard on controlling, and where possible, minimizing our drilling and operating costs in this uncertain environment. This has given us the confidence to move forward knowing we can add substantial production, reserves and shareholder value at these prices.”
The 2017 CAPEX drilling and operational budget is subject to change based on market conditions, commodity price changes, rig availability, drilling results and general operational results.
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development and
production company with current operations in Texas.
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, 2016, its Form 10-Q for the quarter ended March 31, 2017 and its other filings with the SEC. 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.