Midland, TX-based Ring Energy Inc. (OTCQB: RNGE) has raised approximately $19.3 million through a private placement of approximately 3.5 million restricted shares of its common stock at a price of $5.50 per share. Net proceeds after expenses are estimated to be $18.5 million.
Proceeds from the private placement will be used for the continued enhancement and development of Ring’s Permian Basin assets located in Andrews County, Texas, site preparation on the company’s Kansas leases which are scheduled for initial drilling in 2014 and general acquisition and leasing activity. Tim Rochford, Ring’s chairman of the board commented, “The receipt of these funds, in combination with our existing $10 million credit facility, will allow us to move ahead with our development plans in Andrews County while continuing to aggressively pursue additional acquisition opportunities.”
The company has announced its capital budget for 2013 as approximately $31.5 million. The funds will be allocated primarily to the continued development and infrastructure enhancements at its Andrews County, Texas properties. Management has forecasted the drilling of 30 to 35 new development wells and the re-stimulation of 15 to 20 existing wells.
“We have already moved a rig onto one of our central basin properties and are currently drilling our fourth well,” said Kelly Hoffman, CEO. “We intend on keeping that rig busy the remainder of this year.”
Ring Energy Inc. is an oil and gas exploration, development and production company with current operations in Texas and Kansas.