Ring Energy, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
Sep. 30, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 13 – SUBSEQUENT EVENTS Subsequent to September 30, 2020, the Company completed a public offering and concurrently completed a registered direct offering of common shares, pre-funded warrants and common warrants. In total, the company issued 13,075,800 shares, 16,728,500 pre-funded warrants and 29,804,300 common warrants. Gross proceeds received at closing were approximately $20.8 million and net proceeds are anticipated to be approximately $19.1MM. Also subsequent to September 30, 2020, the bank group agreed to an extension of the scheduled borrowing base redetermination from November 2020 to December 2020. This was to allow the Company to properly reflect recent cost reductions and operational efficiencies in the reserve information provided to the bank group. Also subsequent to September 30, 2020, changes occurred to executive management and to the Board of Directors. Mr. Lloyd T. Rochford resigned from his employment position and from the Board of Directors. Mr. Kelly Hoffman resigned as Chief Executive Officer and from the Board of Directors. Mr. Stanley McCabe resigned from the Board of Directors. Mr. David Fowler resigned from the Board of Directors but remains as President of the Company. Mr. Paul D. McKinney was appointed as Chairman of the Board and as Chief Executive Officer. Additionally, Mr. Thomas L. Mitchell, John A. Crum and Richard E. Harris were appointed to the Board of Directors. Also subsequent to September 30, 2020, the Company paid an aggregate of $128,333 gross wages and accelerated the vesting of a total 574,725 shares of previously granted restricted stock to Mr. Lloyd T. Rochford, Mr. Kelly Hoffman and Mr. Stanley McCabe as a result of their departures. Also subsequent to September 30, 2020, the previously announced plan to divest of Delaware Basin assets failed to close. We continue to attempt to work with the buyer but the termination process has been initiated and unless an agreement can be reached, the contract will terminate on November 12, 2020. Also subsequent to September 30, 2020, the Company entered into swap derivative contracts for 6,000 MMBTU/day for calendar year 2021 at a price of $2.991 per MMBTU and 5,000 MMBTU/day for calendar year 2022 at a price of $2.7255 per MMBTU.

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2020

NOTE 13 – SUBSEQUENT EVENTS

Subsequent to September 30, 2020, the Company completed a public offering and concurrently completed a registered direct offering of common shares, pre-funded warrants and common warrants. In total, the company issued 13,075,800 shares, 16,728,500 pre-funded warrants and 29,804,300 common warrants. Gross proceeds received at closing were approximately $20.8 million and net proceeds are anticipated to be approximately $19.1MM.

Also subsequent to September 30, 2020, the bank group agreed to an extension of the scheduled borrowing base redetermination from November 2020 to December 2020. This was to allow the Company to properly reflect recent cost reductions and operational efficiencies in the reserve information provided to the bank group.

Also subsequent to September 30, 2020, changes occurred to executive management and to the Board of Directors. Mr. Lloyd T. Rochford resigned from his employment position and from the Board of Directors. Mr. Kelly Hoffman resigned as Chief Executive Officer and from the Board of Directors. Mr. Stanley McCabe resigned from the Board of Directors. Mr. David Fowler resigned from the Board of Directors but remains as President of the Company. Mr. Paul D. McKinney was appointed as Chairman of the Board and as Chief Executive Officer. Additionally, Mr. Thomas L. Mitchell, John A. Crum and Richard E. Harris were appointed to the Board of Directors.

Also subsequent to September 30, 2020, the Company paid an aggregate of $128,333 gross wages and accelerated the vesting of a total 574,725 shares of previously granted restricted stock to Mr. Lloyd T. Rochford, Mr. Kelly Hoffman and Mr. Stanley McCabe as a result of their departures.

Also subsequent to September 30, 2020, the previously announced plan to divest of Delaware Basin assets failed to close. We continue to attempt to work with the buyer but the termination process has been initiated and unless an agreement can be reached, the contract will terminate on November 12, 2020.

Also subsequent to September 30, 2020, the Company entered into swap derivative contracts for 6,000 MMBTU/day for calendar year 2021 at a price of $2.991 per MMBTU and 5,000 MMBTU/day for calendar year 2022 at a price of $2.7255 per MMBTU.