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

Quarterly report pursuant to Section 13 or 15(d)

LEASES (Tables)

LEASES (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of future lease payments of operating lease and finance lease


		2021			2022			2023			2024			2025
Operating lease payments (1)		$	68,132		$	349,127		$	356,991		$	376,855		$	384,719
Financing lease payments (2)			126,889			336,206			215,530			142,354			—

(1)	The weighted average discount rate as of September 30, 2021 for operating leases was 4.5%. Based on this rate, the future lease payments above include imputed interest of $165,167.

(2)	The weighted average discount rate as of September 30, 2021 for financing leases was 4.3%. Based on this rate, the future lease payments above include imputed interest of $39,771.

Schedule of lease cost


		Three months ended						Nine months ended
		September 30,						September 30,
		2021			2020			2021			2020
Operating lease costs		$	83,589		$	295,631		$	439,896		$	876,889
Short term lease costs (1)			964,873			1,205,407			2,903,387			3,347,484
Financing lease costs:
Amortization of financing lease assets (2)			85,367			71,854			189,831			215,560
Interest on lease liabilities (3)			5,160			7,172			14,166			24,022

(1)	Amount included in Oil and gas production costs

(2)	Amount included in Depreciation, depletion and amortization

(3)	Amount included in Interest expense