The Woodlands-based Ring Energy said this week it agreed to acquire assets primarily in Crane County of privately held Stronghold Energy II Operating and Stronghold Energy II Royalties. Stronghold operations are focused on developing 37,000 net acres (31,000 leasehold, 6,000 minerals) in Central Basin Platform. Stronghold majority owner is Warburg Pincus. The transaction includes $230 million in Ring equity and $200 million cash at closing in 2022Q3.
Current net production is 9,100 boed (54 percent oil). The transaction is expected to add proved development reserves of 41.2 million boe for Ring Energy. Paul D. McKinney, chairman and CEO, said July 5, “The transaction truly complements our existing footprint of conventional-focused Central Basin Platform and Northwest Shelf asset positions… On closing, we expect to nearly double our production, reserves and forecasted free cash flow with assets that we know well.”