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

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

Changes in Stanfords stockholders equity for the four months ended April 30, 2011, on a post-split basis, were as follows:

					Additional		Total
	Common Stock				Paid-in		Stockholders'
	Shares	Amount			Capital		Equity
Balance, December 31, 2010	5,000,000	$	5,000	$	(5,000)	$	-
Common stock issued for no consideration	1,250,000		1,250		(1,250)		-
Cash paid in from shareholders without
the issuance of additional shares	-		-		206,000		206,000
Balance, April 30, 2011	6,250,000	$	6,250	$	199,750	$	206,000

Stanfords cash flows during the four months ended April 30, 2011 were as follows:

Cash Flows from Investing Activities
	Payments to purchase oil and gas properties	$	(176,000)
Cash Flows From Financing Activities
	Capital contributions from shareholders		206,000
Net Increase in Cash			30,000
Cash at Beginning of Period			-
Cash at End of Period		$	30,000

. 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