Ring Energy Inc. (NYSE MKT: REI) issued 2 million restricted common shares in a private offering for about $30 million in gross proceeds, the company said June 17.
The shares were priced at $15 each, and the offer is scheduled to close June 17, the company said.
SunTrust Robinson Humphrey was the lead placement agent, and Global Hunter Securities LLC was co-placement agent, Ring said.
Additionally, Ring Energy established a new senior secured revolving credit facility after entering an agreement, the company said. The new five-year facility’s maximum borrowing amount is $150 million, and its initial borrowing base is $40 million, the company added. SunTrust Robinson Humphrey was the lead arranger, Ring noted. The previous facility’s borrowing base was $25 million, the company said.
“With the receipt of these funds and the establishment of our new credit facility, we now have the resources at hand to step up our leasing activity and accelerate our current Permian development program by adding a third drilling rig in the late third quarter or early fourth quarter of this year. We will continue to aggressively seek and focus on acquisition opportunities that complement our existing properties and offer increased shareholder value through additional drilling locations and reserves,” said CEO Kelly Hoffman.
Midland, Texas-based Ring Energy Inc. develops and produces oil and natural gas in Texas and Kansas.
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