
Ring Energy Inc. has completed its previously announced Central Basin Platform acquisition of Founders Oil & Gas IV LLC assets for about $75 million in cash, according to an Aug. 16 news release. (Source: Shutterstock.com)
Ring Energy Inc. has completed its previously announced Central Basin Platform acquisition of Founders Oil & Gas IV LLC assets for about $75 million in cash, according to an Aug. 16 news release.
The deal—which was announced in July—adds Founders’ operations in the Permian Basin’s Ector County, Texas, and is focused on the development of approximately 3,600 net acres. Ring said the assets are similar to Ring's CBP assets acquired in 2022 from Stronghold Energy Operating II LLC.
Ring described the transaction as “immediately accretive to Ring's production, reserves and adjusted free cash flow.” The deal will also accelerate Ring’s ability to pay down debt, the company said.
Paul D. McKinney, Ring’s board chairman and CEO, said the acquisition closed on Aug. 15.
“This Transaction complements our conventional-focused CBP asset position in the Permian Basin with assets that are similar to the CBP assets we acquired in the third quarter of last year,” he said. “Our near-term focus is to quickly integrate these operations into our business, while at the same time formalizing detailed development plans for the acquired assets.”
McKinney said the assets are similar to the company’s existing inventory in the area and feature stacked pay zones of high-quality rock.
“We intend to leverage our extensive expertise applying the newest conventional and unconventional technologies to optimally develop the acquired inventory of undeveloped drilling locations,” he said.
Raymond James acted as exclusive financial adviser and Jones & Keller PC provided legal counsel to Ring. TenOaks Energy Advisors served as exclusive financial and technical adviser and O'Melveny & Myers LLP provided legal counsel to Founders.
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