The Woodlands-based Ring Energy said in its recent 4Q earnings report that proved reserves increased 78 percent in the past year from 77.8 million boe at yearend 2021 to 138.1 million boe at yearend 2022 in Permian Basin. Capital expenditures in 2023 are forecast at $135 million-to-$170 million after $140.1 million in 2022. Drilling and completions activity will be divided evenly between new horizontal wells on Ring’s legacy acreage and new vertical wells on assets in southern Central Basin Platform acquired from Stronghold Energy in July 2022. “The undeveloped opportunity that came with the acquisition has very, very competitive economics,” Paul D. McKinney, chairman and CEO, said March 9.
Production in 2022Q4 was 17,856 boed (68 percent oil) – up 34 percent from 13,278 boed from Q3. Full year production was 12,364 boed (77 percent oil) in 2022 – up 45 percent from 2021. Twelve of 21 wells placed on production in 4Q did not contribute meaningfully until late December, which should boost production in 2023.
Ring commenced its 2023 drilling program in January with 4 Northwest Shelf horizontal wells drilled and 3 wells completed and placed on production. Ring added a rig in Central Basin Platform to drill 3 vertical wells, which were expected be online by the end of March. Production in 2023 is forecast at 17,800 boed-to-18,800 boed (68 percent oil).