Ring Energy, Inc. completed the acquisition of Central Basin Platform Assets of Founders Oil & Gas IV, LLC.
August 14, 2023
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Ring Energy, Inc. (NYSEAM:REI) entered into an asset purchase agreement to acquire Central Basin Platform Assets of Founders Oil & Gas IV, LLC for $75 million on July 10, 2023. Total consideration of $75 million, subject to customary closing adjustments, consists of $60 million in cash at closing and $15 million deferred cash payment due four months after closing. In connection with the agreement, Ring Energy deposited $7.5 million in cash into a third-party escrow account as a deposit pursuant to the agreement, which will be credited against the purchase price upon closing of the acquisition. The Transaction will be funded with cash on hand and borrowings under Ring?s recently reaffirmed senior revolving credit facility. The acquisition is Immediately accretive to Ring?s shareholders, including production, reserves, Adjusted Free Cash Flow and other key metrics. The Transaction is expected to close in the third quarter of 2023. Raymond James acted as exclusive financial advisor and Jones & Keller, P.C. provided legal counsel to Ring. TenOaks Energy Advisors served as exclusive financial and technical advisor and O?Melveny & Myers LLP provided legal counsel to Founders.
Ring Energy, Inc. (NYSEAM:REI) completed the acquisition of Central Basin Platform Assets of Founders Oil & Gas IV, LLC on August 15, 2023.
Ring Energy, Inc. is an oil and gas exploration, development, and production company. The Company is focused on the development of its Permian Basin assets. Its primary drilling operations target the oil and liquids-rich producing formations in the Northwest Shelf and the Central Basin Platform, in the Permian Basin in Texas. The Company's leasehold acreage positions total approximately 96,127 gross (80,535 net) acres, and it holds interests in approximately 1,043 gross (864 net) producing wells. All of its properties are located in the Permian Basin and its proved reserves are oil-weighted, with approximately 63% consisting of oil, 19% consisting of natural gas, and 18% consisting of natural gas liquids. Of those reserves, approximately 68% are classified as proved developed and 32% are classified as proved undeveloped. Its proved reserves are approximately 129.8 million barrels of oil equivalent (BOE).
RING ENERGY, INC. 
