Ring Energy completes horizontal wells in the Northwest Shelf asset
April 24, 2020
Ring Energy Inc., Midland, drilled, completed, and tested four horizontal San Andres wells on its Northwest Shelf (NWS) asset, filing initial potentials (IP) on each. The company reported the results as part of its first quarter update.
In addition, the company tested and filed IPs on two additional horizontal wells drilled in previous quarters. Average IP rate for the six horizontal wells was 558 boe/d, or 107 bbl/ 1,000 ft on an average lateral of 5,246 ft. The company also performed nine conversions from electrical submersible pumps to rod pumps, 4 in NWS, and 5 in the Central basin platform (CBP).
Drilling has stopped until markets stabilize. Rod conversions will continue in both NWS and CBP, as will downhole workover projects, surface work on storage facilities, and compressor improvements.
Net estimated production for first quarter 2020 was 991,772 boe with an average 10,899 boe/d, compared to 878,600 boe (including 2 months NWS acquisition) for the first quarter 2019.
On Apr. 14, the company said it agreed to sell its Delaware basin asset in Culberson and Reeves Counties, Tex. to an undisclosed buyer for $31.5 million. The property consists of 20,000 net acres with current net daily production of 575 b/d of oil and 2,000 Mcfd of natural gas (908 boe/d). The company received a $500,000 non-refundable deposit and expects to close the transaction in 60 days.