The Woodlands-based Ring Energy said last week it will expand its operations in central basin platform in Permian Basin with a $75 million purchase from Founders Oil & Gas IV. Founders’ operations in Ector County are focused on development of about 3,600 net acres like Ring’s central basin platform assets acquired in 2022 from Stronghold Energy Operating II. Closing is expected in 2023Q3.
Production from these assets in 2023Q2 was about 2,500 boed (86 percent oil). Total proved reserves at yearend 2022 were 9.2 million boe (80 percent oil). Ring said July 11 that the inventory includes about 50 low-cost, high rate-of-return undeveloped drilling locations. Paul D. McKinney, chairman and CEO, said, “These assets strategically expand our existing operations in the southern portion of the central basin platform – allowing us to capture operating cost and G&A synergies associated with a larger core operating area.”
Capital spending of $67 million to $77 million is expected in second half 2023, including drilling horizontal wells on Ring legacy acreage and vertical wells on acquired acreage from Stronghold and Founders.
