Ring Energy Inc. (OTCBB: RNGE) raised US $19.3 million through a private placement of 3.5 million restricted shares of its common stock at US $5.50 per share.
Net proceeds after expenses are estimated to be US $18.5 million. Proceeds will be used for the continued enhancement and development of its Permian Basin assets located in Andrews County, Texas, site preparation on its Kansas leases which are scheduled for initial drilling in 2014, and general acquisition and leasing activity.
The receipt of these funds, in combination with Ring’s existing $10 million credit facility, will allow the company to move ahead with its development plans in Andrews County while continuing to aggressively pursue additional acquisition opportunities, said Tim Rochford, Ring’s chairman of the board, in the release.
The company has announced its capital budget for 2013 as US $31.5 million. The funds will be allocated primarily to the continued development and infrastructure enhancements at its Andrews County properties. Management has forecasted the drilling of 30 to 35 new development wells and the re-stimulation of 15 to 20 existing wells.
Ring has moved a rig onto one of its central basin properties and is currently drilling its fourth well. The company intends on keeping that rig busy the remainder of this year, said Kelly Hoffman, Ring’s CEO, in the release.
Ring Energy Inc. is an oil and gas exploration, development and production company with current operations in Texas and Kansas. The company is based in Midland, Texas.
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