Ring Energy acquires acreage in the Permian
MIDLAND -- Ring Energy has announced that it has closed its transaction with Tessara Petroleum Resources, a wholly owned subsidiary of The Carlyle Group L.P., for assets located in Andrews County, Texas. Ring issued 2,623,948 million shares of its common stock valued at $5.80 per share. The transaction has an effective date of Nov. 1, 2018.
The assets consist of 4,763 net acres. Ring will be the operator, have a 100% working interest and 75% net revenue interest. The acreage is in, around and contiguous to the Company’s core assets on the Central basin platform (CBP) and offsets the majority of the Company’s top producing wells. Management estimates that this acquisition, in combination with additional smaller surrounding leases the Company has acquired, will add 5,313 net acres and 55 new gross horizontal drilling locations.
