In first-quarter 2014, Ring Energy Inc. (NYSE: REI) increased its 2014 capex budget to $115 million, the company said April 22.
Ongoing leasing and acquisitions, as well as an accelerated development program, drove the increase, the company said.
The upsized capex budget includes the drilling of 130 development wells—at a minimum—and the workover and restimulation of existing wells in Texas, Ring Energy said.
The budget also includes infrastructure additions and improvements, as well as continued leasing activity, the company added.
Cash on hand, as well as “increasing cash flow from operations” and the credit facility will fund the budget, Ring Energy said.
Additionally, Ring Energy detailed its first-quarter operations. Out of a total of 24 development wells that were drilled, 15 were completed and placed on production by March 31, the company said. There are nine development wells that will be placed on production in second-quarter, the company added.
The quarter ended March 31 with about 69,650 barrels of oil equivalent (boe), the company said, noting the 394% increase over first-quarter 2013’s 14,088 boe.
Ring Energy said that for the month, average daily net production was about 900 boe, up 609% from March 2013’s 127 boe.
The company reconfirmed its joint-venture pilot drilling program in Kansas, Ring Energy said, noting that it will drill the first five wells in a ten-well program.
Midland, Texas-based Ring Energy Inc. explores, develops and produces oil and natural gas in Kansas and Texas.
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