MIDLAND, Texas--(BUSINESS WIRE)--Ring Energy, Inc. (NYSE American: REI) (“Ring”) (“Company”) today released its operations update for the first quarter of 2018. In the three months ended March 31, 2018, the Company drilled 12 new horizontal San Andres wells, one new horizontal Brushy Canyon well, three saltwater disposal wells, and was in the process of drilling two additional new horizontal San Andres wells at the end of the quarter. Of the 13 drilled wells, 12 were one mile long and one was ½ of a mile long. In the first quarter, the Company completed, tested and filed Initial Potentials (“IPs”) on 12 new horizontal San Andres wells – 11 wells which were drilled in 2017 and one well drilled in the first quarter of 2018. The average IP on the 12 completed wells in the first quarter 2018 was approximately 436 Barrel of Oil Equivalents (“BOE”) per day. In addition, the Company had 20 new horizontal San Andres wells which were in varying stages of drilling, completion and testing on March 31, 2018.
As a result, net production for the first quarter of 2018 was approximately 507,000 BOEs, as compared to net production of 266,000 BOEs for the same quarter in 2017, an approximate 90.6% increase, and net production of 422,000 for the fourth quarter of 2017, an approximate 20.1% increase. March 2018 average net daily production was approximately 6,005 BOEs, as compared to net daily production of 3,618 BOEs in March 2017, an approximate 66% increase, and net daily production of 5,352 in December 2017, an approximate 12.2% increase. The average estimated price received per BOE in the first quarter 2018 was $61.50.
Mr. Kelly Hoffman, Ring’s Chief Executive Officer, stated, “The momentum of 2017 has continued into 2018. Our daily BOEPD is up over 66% during the past year, and as we stated on our last conference call, we continue to see double-digit growth quarter over quarter. We are on track to drill 60 new horizontal wells this year, and with results exceeding all of our expectations that growth looks to continue for years to come. We have completed our gas gathering pipeline and are starting to sell our gas associated with the horizontal drilling, instead of flaring it, which will significantly increase our gas sales going forward. We have also started to restimulate some of our older horizontal wells that have gone through their normal production decline and have seen great results. This is very cost-effective, and we have seen daily production increases of over 50% in some wells. The first horizontal well on the North Gaines Property has been drilled, and management is determining the most optimum completion technique. Results have been encouraging, and we are in the process of evaluating the best technique to maximize our returns. Our first horizontal well in the Brushy Canyon formation on our Delaware Basin Property has been drilled and is awaiting completion. We remain focused on our goal of being cash flow positive by year end. With no debt, a strong balance sheet and a talented team behind us we look forward to continued growth and success the rest of the year and beyond.”
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, 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.