Ring Energy shows increased production to close 2016

By Patrick C. Miller | March 22, 2017

Texas-based Ring Energy Inc. had oil and gas revenues of $9.83 million in the fourth quarter of 2016 compared to $7.36 million for the same quarter in 2015.

Kelly Hoffman, company CEO, said, “2016 started slowly as a year of patience and perseverance, and finished as one of pursuit and productivity. With low commodity prices continuing in early 2016, our staff did an excellent job of improving efficiencies by lowering operating costs while increasing production. We focused on improving and upgrading our infrastructure.”

Ring Energy is an oil and gas exploration, development and production company with operations in Texas and Kansas. It focuses on the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent regions.

During the last quarter of 2016, oil sales volume increased to 201,041 barrels, compared to 180,694 barrels for the same period in 2015—an 11 percent increase. Gas sales volume increased to 212 million cubic feet, compared to 192.2 million cubic feet for the same period in 2015—a 10 percent increase.

At year’s end, Ring Energy reported oil and gas revenues of $30.85 million compared to $31 million the previous year. For the fourth quarter of 2016, the company reported a net loss of $477,006—1 cent per diluted share. This compares to a net loss of $7.47 million—25 cents diluted share—including a pre-tax non-cash impairment of $9.3 million for the fourth quarter of 2015. Excluding the impairment, the net loss per diluted would have been 5 cents.

“We enter 2017 focusing on the exceptional opportunities within our current asset base,” Hoffman said. “We are positioned for sustained growth and continue to aggressively look for opportunities that would complement our core assets and fuel that growth.”

Last November, Ring Energy announced a preliminary capital expenditure budget of $70 million for 2017, which includes drilling 22 new horizontal wells, six new vertical development wells and continued upgrading of existing infrastructure on its Central Basin platform. In addition, Ring Energy plans to drill eight new vertical wells, complete remedial work on 12 existing wells and upgrade infrastructure on its Delaware Basin asset.

“We are very pleased with the initial results we are seeing from our 2017 horizontal well drilling program, as they are meeting and/or exceeding the results we received on our pilot three-well horizontal drilling program at the end of 2016,” Hoffman said. “Although we didn’t allocate funds in the preliminary 2017 budget for a horizontal development program on our Delaware Basin asset, we are very excited about the prospects of such a program based on the information and core samples we retrieved by drilling two vertical wells to the base of the Brushy Canyon shale.”