Ring Energy expands Central Basin Platform footprint in $100-million deal
Ring Energy Inc. has agreed to acquire the oil-weighted Central Basin Platform (CBP) assets of Lime Rock Resources IV LP for $100 million.
Lime Rock’s CBP acreage lies in Andrews County, Tex., the majority of which directly offsets Ring’s core Shafter Lake operations, the Permian basin producer said in a release Feb. 26. The remaining acreage “is prospective for multiple horizontal targets and exposes the company to new active plays,” it said.
Ring will acquire about 17,700 net acres (100% held by production) contiguous to its existing footprint, increasing its Permian basin net acreage by about 25%. Average third-quarter 2024 net production from about 101 gross wells was 2,300 boe/d (>80% oil), increasing the company’s net production by about 12%. More than 40 gross locations immediately compete for capital, Ring said.
Consideration consists of $80 million in upfront cash, a $10 million deferred cash payment due 9 months after closing, and up to 7.4 million shares of Ring common stock. The deal is expected to close by end-first-quarter 2025.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
