MIDLAND, Texas--(BUSINESS WIRE)--
Ring Energy, Inc. (NYSE American: REI) (“Ring”) (“Company”) today released its operations update for the fourth quarter of 2017. In the three months ended December 31, 2017, the Company, on its Central Basin Platform (“CBP”) asset, drilled 19 new horizontal San Andres wells and were in the process of drilling number 20 at the end of the quarter. Of the 19 drilled wells, 16 were one mile long and three were ¾ of a mile long. In the fourth quarter, the Company completed, tested and filed Initial Potentials (“IPs”) on 13 new horizontal San Andres wells – eight wells which were drilled in the third quarter and five which were drilled in the fourth quarter of 2017. The average IP on the 13 completed wells in the fourth quarter 2017 was approximately 458 Barrel of Oil Equivalents (“BOE”) per day. In addition, the Company has 20 new horizontal San Andres wells which are currently in varying stages of completion and testing.
For the twelve months ended December 31, 2017, the Company drilled 47 new horizontal San Andres wells on its CBP asset. Five of the wells were 1.5 miles long, 39 were 1 mile long and three were ¾ of a mile long. Of the 47 wells drilled, 27 were completed, tested and had IPs filed. The average IP on the 27 completed wells in 2017 was approximately 584 BOE per day.
As a result, net production for the fourth quarter of 2017 was approximately 422,000 BOEs, as compared to net production of 240,000 BOEs for the same quarter in 2016, an approximate 76% increase, and net production of 376,000 for the third quarter of 2017, an approximate 12% increase. December 2017 average net daily production was approximately 5,352 BOEs, as compared to net daily production of 2,725 BOEs in December 2016, an approximate 96% increase, and net daily production of 4,345 in September 2017, an approximate 23% increase. The average estimated price received per BOE in the fourth quarter 2017 was $50.50. For the twelve months ended December 31, 2017, net production was approximately 1,402,000 BOE, as compared to 865,500 for the twelve months ended December 31, 2016, an approximate 62% increase.
Mr. Kelly Hoffman, Ring’s Chief Executive Officer, stated, “Our CBP property continues to show excellent results. The Company drilled, completed and brought on line 27 wells in 2017, with 20 more wells in process. We couldn’t be more pleased as the average initial production, as well as the type curve, continues to exceed our original projections. We are currently working on our capital expenditure budget (“CAPEX”) for 2018. Management is committed in their desire to work within existing operational cash flow while continuing to deliver exceptional annual growth. We plan on issuing a release detailing the 2018 CAPEX in the very near future. We continue to seek opportunities that will complement our existing acreage with a focus on the CBP and expanding that footprint. Having a strong balance sheet with ample cash and no debt, we look for 2018 to be an exciting year for Ring, its employees and our shareholders.”
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 September 30, 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.