Ring Energy, Inc. Announces Fourth Quarter and Year End 2014 Operations Update
Production Increases 297% Over 2013
Management Discusses 2015 Strategy
MIDLAND, Texas--(BUSINESS WIRE)-- Ring Energy, Inc. (NYSE MKT: REI) (“Ring”) (“Company”) today announced its operations update for the fourth quarter of 2014. In the last three months of 2014, Ring drilled 43 new development wells, 33 of which were completed and placed in production by year-end. The remaining 10 development wells are in varying stages of completion and will be placed in production in early 2015. In addition, the Company performed five re-fracs and re-completions in the fourth quarter of 2014. For the full year of 2014, the Company drilled 135 development wells, with 125 wells being completed and placed in production by year-end. The Company had a 100% success rate on development wells drilled and completed in 2014.
Despite weather-related issues late in the year, net production for the quarter ended December 31, 2014 was approximately 155,100 BOEs (Barrel of Oil Equivalent), as compared to net production of 64,010 BOEs for the same quarter in 2013, a 142% increase, and as compared to 140,000 BOEs for the third quarter 2014, an increase of approximately 10.8%. December 2014 average net daily production was approximately 1,865 BOEs, as compared to average net daily production of 806 BOEs in December 2013, an increase of 131%. Total production for 2014 was approximately 482,750 BOEs compared to 121,695 BOEs for 2013, a 297% increase.
Gross acreage in the Company’s core Texas properties increased from 14,376 acres at the end of the fourth quarter 2013 to 29,738 acres at the end of the fourth quarter 2014, a 107% increase, and a 32.1% increase from the end of the third quarter 2014.
In Kansas, all drilling activity has temporarily stopped while the Company completes an extensive 3-D seismic evaluation.
Management also discussed the Company’s plans for 2015. Mr. Kelly Hoffman, Ring’s Chief Executive Officer, stated, “Our staff did an excellent job this year. We have continued to add core acreage, both organically and through acquisition. We maintained an aggressive development program, drilling 135 new wells on our West Texas properties. At the beginning of the 2014 fourth quarter, we had three contracted rigs drilling new development wells. We have returned all three and curtailed all drilling operations based on current finding and development costs and dropping commodity prices. Our staff members continue to work with all our service providers and vendors. Because of this work, we are starting to see meaningful reductions in our finding and development costs, as well as our ongoing operating costs. We firmly believe the prudent course of action is patience. The Company is ready to restart its development program once commodity prices stabilize. We have the benefit of a strong balance sheet with no debt, an unused credit facility and positive cash flow. Additionally, because of current commodity prices, we have begun to see an increase in the number of acquisition opportunities and believe this will continue during this volatile time. We will continue to grow this Company, whether organically or through acquisition or both and are postured to react immediately should the opportunity arise.”
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development and production company with current operations in Texas and Kansas.
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, 2013, its Form 10-Q for the quarter ended September 30, 2014 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.
K M Financial, Inc.
Bill Parsons, 702-489-4447
Source: Ring Energy, Inc.
Released January 29, 2015