Ring Energy provides Q2 operations update
Ring Energy released its operations update for the second quarter of 2019. In the three months ended June 30, 2019, the company drilled thirteen new horizontal San Andres wells. On its Central Basin Platform asset, Ring drilled seven new horizontal San Andres wells, five 1-mile horizontal wells and two 11/2-mile horizontal wells. On its newly acquired Northwest Shelf property, Ring drilled six new horizontal San Andres wells, four 1-mile horizontal wells, two 11/2 mile horizontal wells, and were in the process of drilling two more at the end of the quarter. Of the thirteen wells drilled, four were waiting on completion , seven were drilled, completed and are in varying stages of testing, and two were drilled, completed, finished testing and had Initial Potentials filed. The Bruce E Gentry JR 647 A 2H had an IP of 359 Barrel of Oil Equivalents per day, or 88 BOE per 1,000 feet, and the Sooner 662 A 2H had an IP of 767 BOE per day, or 181 BOE per 1,000 feet. The Ellen B. Peters 3H and 4H continue to perform well. Management stated in the first quarter 2019 operations update that the combined production of the two wells was approximately 200 barrels of oil per day with an excellent oil cut percentage of 25%. Currently the combined production of the two wells is approximately 150 BOPD and 150 thousand cubic feet per day of natural gas. The Hugin 1H and Hugin 2H had IPs filed in the first quarter of 2019. The Hugin 1H had an IP of 818 BOE per day, and the Hugin 2H had an IP of 423 BOE per day. Currently the two wells combined are producing approximately 375 BOPD and 2,300 Mcfd. The Phoenix 1H and Phoenix 2H are currently producing approximately 70 BOPD and 2,000 Mcfd. As a result, net production for the second quarter of 2019 was approximately 976,000 BOEs. This is the first time the quarterly operations update combines the results of both Ring and the newly acquired NWS property. Management provided an estimated proforma in the 2019 first quarter operations update of a combined production for the quarter ended March 31, 2019 of 1,050,000 BOEs. Management attributes the decrease to a normal decline rate since all drilling operations had ceased on the NWS property October 2018 and did not start again until early April 2019. June 2019 average net daily production was approximately 10,800 BOEs.