Ring Energy CAPEX budget increase


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Ring Energy, Inc. Announces 2018 Capital Expenditure Budget Increase to Estimated $197 Million

Ring Energy, Inc. (NYSE American: REI) (“Ring”) (“Company”) announced today an approximate $47 million increase in its capital expenditure budget (“CAPEX”) for 2018, making an estimated total of $197 million…

Costs not in the initial 2018 budget associated with the Company’s first North Gaines horizontal well were incurred based on the decision to use the first well as a “test” well to determine the optimum completion process. None of the additional costs incurred were related to the actual new well drilling costs, as all the horizontal wells drilled to date in 2018 have come in at, or below budget.

The Company has increased its second half 2018 budget by $10 million to approximately $85 million. The budget includes the drilling of 26 new horizontal San Andres wells on its CBP, two new North Gaines horizontal wells and two new Brushy Canyon horizontal wells on its Delaware Basin property…

We continue to have no product takeaway issues and stay in constant contact with our purchasers and brokers who assist us with that process. Because of the price differentials all the operators in the Permian Basin are currently experiencing, we choose not to focus on benchmark prices, but actual prices received. For example, at $50 per barrel of oil equivalent (“BOE”) received on our one-mile laterals, our estimated internal rate of return (“IRR”) is approximately 80% [*]…