Ring Energy, Inc. General form of registration statement for all companies including face-amount certificate companies

Tabular disclosure of acquisition and development costs (Tables)

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

The following table shows total depletion and depletion per barrel-of-oil-equivalent rate, for the years ended December 31, 2013 and 2012.

	For the Years Ended December 31,
	2013		2012

Depletion	$	2,223,477	$	474,056
Depletion rate, per barrel-of-oil-equivalent (BOE)	$	20.27	$	21.94

The following table shows total depletion and depletion per barrel-of-oil-equivalent rate, for the years ended December 31, 2012 and 2011.

	For the Years Ended December 31,
		2012		2011

Depletion	$	474,056	$	89,376
Depletion rate, per barrel-of-oil-equivalent (BOE)	$	21.94	$	19.19

Depreciation of buildings and equipment is calculated using the straight-line method based upon the following estimated useful lives:

Buildings and improvements		30 years
Office equipment and software		5-7 years
Machinery and equipment		5-7 years

Depreciation of buildings and equipment is calculated using the straight-line method based upon the following estimated useful lives:

Buildings and improvements		30 years
Office equipment and software		5-7 years
Machinery and equipment		5-7 years

Net Costs Incurred in Oil and Gas Producing Activities

	For the Year Ended		For the Year Ended
	December 31,		December 31,
	2013		2012
Acquisition of proved properties	$	5,192,441	$	9,873,128
Development costs		29,796,379		6,581,343

Total Net Costs Incurred	$	34,988,820	$	16,454,471

Capitalized Costs Relating to Oil and Natural Gas Producing Activities

		As of		As of
		December 31,		December 31,
		2012		2011
Proved oil and natural gas properties	$	23,051,904	$	6,597,433
Office equipment		175,106		11,133
Total capitalized costs		23,227,010		6,608,566
Accumulated depletion, depreciation and amortization		(596,162)		(89,376)

Net Capitalized Costs	$	22,630,848	$	6,519,190

Net Costs Incurred in Oil and Gas Producing Activities

		For the Year Ended		For the Year Ended
		December 31,		December 31,
		2012		2011
Acquisition of proved properties	$	9,873,128	$	6,280,391
Development costs		6,581,343		317,042

Total Net Costs Incurred	$	16,454,471	$	6,597,433