Ring Energy (REI) Update - Feb 8

[dan_s]

REI is up 23% on very heavy trading volume this morning. Over 22 million shares have traded this morning. Ring only has 81.1 million total shares.

I've had several conversations with the company recently encouraging them to host one of our webinars, which I expect them to do in late March or April. The new CEO, Paul McKinney, has already made some moves to shore up their balance sheet and I expect them to announce a 1.5 rig drilling program (one rig in 1H 2021 and two rigs in 2H 2021) that will raise production by 20% YOY in 2021. Ring should be able to fully funded the D&C program with cash flow from operations.

My valuation of $2.20 will go up if their guidance confirms my 2021 forecast.

[mrbill]

Thanks Dan, your tips got me to park some loose cash in REI last week and it gave me a double today. Not sure what the high volume means yet, but I like it. Dumb question: Is someone taking a big liking to this and where could it go?
Just keep mining those gold nuggets. Bring them on. Been a while since this was fun.

[dan_s]

If WTI goes to $65/bbl (my Q4 forecast) then REI should double.

Consider taking some profits and moving it to Hemisphere Energy (HMENF) that has 500% upside if WTI goes to $65/bbl.

[mrbill]

Took your advice and put some profits into Hmenf last week. I can move some more. All of a sudden $65/barrel looking very doable.

[mrbill]

I know you ceased covering GPOR, but with all the upward motion on natgas was wondering if there is any
reason to follow it's new form, whatever it is?