Ring Energy Inc. expects four Permian basin Northwest Shelf (NWS) San Andres wells drilled in Yoakum County, Tex., in December and January—including three 1.5-mile horizontal wells and one 1.0-mile horizontal well—to be completed and on production by the first week of March 2021.
The wells are part of a plan to drill six to eight wells and complete eight to ten wells in 2021 and increase its 2021 production 3-8% above 2020 levels to a target average of 9,100-9,450 boe/d (85-87% oil) with a capital spending program of $44-48 million.
Work includes well reactivations, workovers, infrastructure upgrades, and continuing the conversions from electrical submersible pumps to rod pumps (CTR) program in the NWS and the Central Basin Platform (CBP) areas. Anticipated leasing, contractual drilling obligations and non-operated drilling, completion, and capital workover projects are also included.
Average production in 2020 was 8,790 boe/d. For fourth-quarter 2020, Ring produced 9,307 boe/d, exceeding its previous guidance of 8,900-9,000 boe/d.
The company also plans to begin a process to sell its Delaware basin assets in this year’s second quarter, subject to market conditions.
