Ring Energy Inc. (NYSEAMERICAN: REI) gains 3% following Encouraging Production of New Drill Program

Ring Energy Inc. (NYSEAMERICAN: REI) gained 3.74% after the company offered on the previously announced drill program of three wells on its top tier Northwest Shelf acreage targeting the highest rate-of-return project Yoakum County, Texas. 

Newly drilled wells producing 300 barrels per well 

All the three wells, the Bevo 664 C #2H, the Bevo 664 A #4H, and Bevo 664 A #3H, went online on May 1, May 27, and May 30, respectively. In comparison to past wells drilled in the Section, all three wells began producing oil within three to four days of coming online, which is highly promising. Over the last seven days, the three wells have produced an average of about 300 barrels of oil per day per well. Each of the three wells has a working interest of roughly 74%.

CEO and Chairman of the Board Paul McKinney said that the development program’s sustained success is quite encouraging. It confirms the company’s confidence in the large inventory of drilling sites on the NWS acreage. He added that besides the excellent production outcomes, the company drilled and completed all seven wells in Phase I and Phase II programs on time and budget.

Ring Energy to commence phase III drilling

 McKinney said the company is actively developing plans for the Phase III drilling program, which could begin as soon as the third quarter of 2021, based on the recent positive outcome of spring 2021 bank redetermination. As a result, the increased flexibility afforded by the pivot to a more proactive hedging strategy and the current high oil price environment could be vital.

The CEO added that they are looking forward to updating shareholders regarding their progress as they focus on optimizing free cash flow generation to position the company for long-term success. 

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