Ring Energy Inc., Midland, Tex., restored production to 9,219 boe/d (88% oil) in third-quarter 2020, within the company’s guidance range, increasing third quarter net daily production 70% compared to second-quarter 2020 when production volumes were negatively by well shut-ins from late April through early June due to the pandemic induced oil price collapse, and within 15% of first-quarter 2020 net production (OGJ Online, Mar. 10, 2020; July 23, 2020).
In the third quarter, the company performed eight conversions from electrical submersible pumps (ESP) to rod pumps—six in the Northwest Shelf and two in the Central Basin Platform—and paid an additional $9 million on its senior credit facility, reducing the current outstanding balance to $360 million.
The company is not currently drilling any new wells but stands ready to begin drilling once oil prices recover to higher levels, said Danny Wilson, executive vice-president, and chief operating officer.
For the 9 months ended Sept. 30, net estimated production was 2,334,924 boe, or 8,522 boe/d, as compared to net production of 3,041,000 boe, or 11,139 boe/d for the 9 months ended Sept. 30, 2019.