The Woodlands-based Ring Energy said last week it divested non-core vertical wells with high operating costs for $5.5 million. Paul D. McKinney, chairman and CEO, said March 6, “We intend to maintain or slightly grow our production through our organic drilling program and grow through accretive, balance sheet enhancing acquisitions of assets that meet specific criteria… We intend to continue a reduced capital spending program in the first quarter to help us achieve a satisfactory leverage ratio upon closing the Lime Rock transaction.” Ring is in the process of bolting on central basin platform assets from Lime Rock and is divesting expensive, non-core vertical wells.
Capital expenditures in 4Q for Ring were $37.6 million, near midpoint of guidance. Ring drilled 5 horizontal wells and 4 vertical wells and completed 10 wells with all drilling and completion activity occurring in central basin platform. For fullyear 2024, capital spending was $151.9 million (flat with 2023), including costs to drill, complete and place on production 21 horizontal wells (5 in northwest shelf, 16 in central basin platform) and 22 vertical wells in central basin platform.