Ring Energy (REI) Update Profile

[dan_s]

An updated profile and forecast model for Ring Energy has been posted to the EPG website.

REI is on-track to double production in 2017 and double it again in 2018. Cash on hand and cash flow from operations should cover 100% of capex for the next two year. This one is a "keeper".

[wilmawatts]

agreed

[dan_s]

When I was at Hess, the San Andres Unit (a CO2 flood) was our best asset.

Ring is using horizontal drilling technology to get lots of oil out of the tight sandstone in the Central Basin Uplift area.

[wilmawatts]

The San Andres formation is what the Permian Basin discovery well, the Santa Rita #1, hit on May 28, 1923 over in the Midland subbasin. They now drill for the Sprayberry/Wolfcamp in that subbasin, but on the shelf it makes sense the San Andres still has oil in place. And with todays technology the IP for the Ring Energy Wells is much better than the "Santa Rita #1 blowout" well, which attracted all the attention

I am long REI