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February 04, 2015 – Comments (3)

Ring Energy (AMEX: REI) announced its operations update for the fourth quarter of 2014. In the last three months of 2014, Ring drilled 43 new development wells, 33 of which were completed and placed in production by year-end. The remaining 10 development wells are in varying stages of completion and will be placed in production in early 2015. In addition, the Company performed five re-fracs and re-completions in the fourth quarter of 2014. For the full year of 2014, the Company drilled 135 development wells, with 125 wells being completed and placed in production by year-end. The Company had a 100% success rate on development wells drilled and completed in 2014.

Despite weather-related issues late in the year, net production for the quarter ended December 31, 2014 was approximately 155,100 BOEs (Barrel of Oil Equivalent), as compared to net production of 64,010 BOEs for the same quarter in 2013, a 142% increase, and as compared to 140,000 BOEs for the third quarter 2014, an increase of approximately 10.8%. December 2014 average net daily production was approximately 1,865 BOEs, as compared to average net daily production of 806 BOEs in December 2013, an increase of 131%. Total production for 2014 was approximately 482,750 BOEs compared to 121,695 BOEs for 2013, a 297% increase.

Gross acreage in the Company’s core Texas properties increased from 14,376 acres at the end of the fourth quarter 2013 to 29,738 acres at the end of the fourth quarter 2014, a 107% increase, and a 32.1% increase from the end of the third quarter 2014.

In Kansas, all drilling activity has temporarily stopped while the Company completes an extensive 3-D seismic evaluation.

Management also discussed the Company’s plans for 2015. Mr. Kelly Hoffman, Ring’s Chief Executive Officer, stated, “Our staff did an excellent job this year. We have continued to add core acreage, both organically and through acquisition. We maintained an aggressive development program, drilling 135 new wells on our West Texas properties. At the beginning of the 2014 fourth quarter, we had three contracted rigs drilling new development wells. We have returned all three and curtailed all drilling operations based on current finding and development costs and dropping commodity prices. Our staff members continue to work with all our service providers and vendors. Because of this work, we are starting to see meaningful reductions in our finding and development costs, as well as our ongoing operating costs. We firmly believe the prudent course of action is patience. The Company is ready to restart its development program once commodity prices stabilize. We have the benefit of a strong balance sheet with no debt, an unused credit facility and positive cash flow. Additionally, because of current commodity prices, we have begun to see an increase in the number of acquisition opportunities and believe this will continue during this volatile time. We will continue to grow this Company, whether organically or through acquisition or both and are postured to react immediately should the opportunity arise.”

 

3 Comments – Post Your Own

#1) On February 04, 2015 at 12:50 PM, Teacherman1 (< 20) wrote:

Good find Tagit

It's small, but strong.

I will likely buy some in RL, but you know me, I always want to get it cheaper.:)

Will need to get Motley Fool to add it to the picks list before it will show in caps.

I had a good couple of days on Mon and Tue, but looks like the market is trying to take it back today.

I have been tied up trying to transfer my wife's Individual Account and our other Joint Account from Buy and Hold, to Trade King, but it is more of a hassel than it should be.

Buy and Hold is going to close and if I don't get them moved, they will automatically transfer them to another broker that I don't want them transfered to, so will be in and out here at TMF, as I try to get them all of the things they ask for.

I am also being harrased by a puppy that my wife insisted we get to replace the old dog we had to put down. This one is a lot smaller, but being a puppy, he is full of energy.  

Fool on.  

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#2) On February 04, 2015 at 4:52 PM, Tagit (< 20) wrote:

Hi Jim, 

I think it will go cheaper, but not much, and being small makes it a perfect merger canidate too. It took me awhile to find this one. 

They don't frack, but use vertical methods for drilling = cheaper. A play like this with a solid balance sheet and no debt is pretty hard to find in this environment right now.

Of course there is risk, but this one is looking pretty tasty.

Good luck with the new pup and getting everything lined out with those accounts.

 

Fool on!!

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#3) On February 05, 2015 at 2:21 PM, Teacherman1 (< 20) wrote:

Tagit

REI is now rateable in CAPS.

It is on my watch list at a lower price and may not go there, but I will watch and see how it does and maybe buy some anyway.

It looks good, but I do like "bargains".:) 

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