Ring Energy Inc., Midland, Tex., agreed to acquire North Central basin platform assets in the Permian basin—primarily in Southwest Yoakum County, Tex., and East Lea County, NM—from Wishbone Energy Partners LLC, Houston, and affiliates in a cash and stock deal worth $300 million.
Consisting of 49,754 gross (37,206 net) acres of mostly contiguous leasehold, Ring will serve as operator with 77% working interest and a 58% net revenue interest. Adjacent to Wasson and Brahaney fields, the base of 127 gross wells currently produce an average net production of 6,000 boe/d. The assets are about 96% operated by current production volume. Current infrastructure includes 1,385 acres of owned surface rights, 21 saltwater disposal wells, 15 source water wells, 5 frac ponds, and 3 caliche pits for road material and new locations.
“This acquisition doubles our daily production, adds another 37,000 prime acres to our horizontal footprint, and nearly doubles our proved reserves. We now have over 20 years of San Andres horizontal drilling inventory using a two-rig development program,” said Ring Chief Executive Officer Kelly Hoffman.
The transaction is expected to close early in this year’s second quarter.
