| Schedule of preliminary allocation of total cost of acquisition to assets acquired and liabilities assumed |
The following table represents the preliminary allocation of the total cost of the Stronghold Acquisition to the assets acquired and liabilities assumed as of the Stronghold Acquisition date:
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Consideration: |
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|
Shares of Ring Common Stock issued |
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|
21,339,986 |
Ring Common Stock price as of August 31, 2022 |
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$ |
3.24 |
Common Stock Consideration |
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$ |
69,141,555 |
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|
|
Shares of Ring Preferred Stock issued |
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|
153,176 |
Aggregate Liquidation Preference |
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$ |
153,176,000 |
Conversion Price |
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$ |
3.60 |
As-Converted Shares of Ring Common Stock |
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|
42,548,903 |
Ring Common Stock Price as of August 31, 2022 |
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$ |
3.24 |
Preferred Stock Consideration |
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$ |
137,858,446 |
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Cash consideration: |
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Closing amount paid to Stronghold by bank |
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|
121,392,455 |
Escrow deposit paid at closing |
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|
46,500,000 |
Cash paid for inventory and fixed assets |
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|
4,527,103 |
Cash paid for realized losses on August oil derivatives |
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|
1,777,925 |
Total cash consideration |
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|
174,197,483 |
Fair value of deferred payment liability |
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|
14,511,688 |
Fair value of consideration to be paid to seller |
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|
395,709,171 |
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|
|
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Direct transaction costs |
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|
9,162,143 |
Total consideration |
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$ |
404,871,314 |
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|
|
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Fair value of assets acquired: |
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|
|
Oil and natural gas properties |
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|
441,318,763 |
Inventory and fixed assets |
|
|
4,527,103 |
Amount attributable to assets acquired |
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$ |
445,845,866 |
Fair value of liabilities assumed: |
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Suspense liability |
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|
1,651,596 |
Derivative liabilities, marked to market |
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|
24,784,406 |
Asset retirement obligations |
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|
14,538,550 |
Amount attributable to liabilities assumed |
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$ |
40,974,552 |
Net assets acquired |
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$ |
404,871,314 |
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