Quarterly report pursuant to Section 13 or 15(d)

ACQUISITIONS

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ACQUISITIONS
 9 Months Ended
Sep. 30, 2015
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
NOTE 3 – ACQUISITIONS
 
In June 2015, Ring completed the acquisition of oil and gas assets and properties in the Ford West Field and Ford Geraldine Unit in Reeves and Culberson Counties, Texas. The acquired properties consist of 14,645 gross acres (14,322 net) and include a 98% average working interest and a 79% average net revenue interest. Consideration given by the Company consisted of cash payments totaling $75,000,000 and the assumption of accounts receivable of approximately $286,563 and accounts payable of approximately $742,332. The Company incurred approximately $129,896 in acquisition related costs, which were recognized in general and administrative expense during the nine months ended September 30, 2015.
 
The acquisition was recognized as a business combination whereby Ring recorded the assets acquired and the liabilities assumed at their fair values as of May 1, 2015, which is the date the Company obtained control of the properties and was the acquisition date for financial reporting purposes. The estimated fair value of the acquired properties approximated the consideration paid, which the Company concluded approximated the fair value that would be paid by a typical market participant. The following table summarizes the fair values of the assets acquired and the liabilities assumed:
 
Assets acquired
 
 
 
 
Proved oil and natural gas properties
 
$
77,177,110
 
Accounts receivable
 
 
286,563
 
Liabilities assumed
 
 
 
 
Accounts payable
 
 
(742,332)
 
Asset retirement obligations
 
 
(2,177,110)
 
Total Identifiable Net Assets
 
$
74,544,231
 
 
The following unaudited pro forma information is presented to reflect the operations of the Company as if the Ford West Field and Ford Geraldine Unit acquisition had been completed on January 1, 2015 and 2014, respectively.
 
 
 
For The Three Months
 
For The Nine Months
 
 
 
Ended September 30,
 
Ended September 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oil and Gas Revenues
 
$
8,629,007
 
$
19,396,226
 
$
29,891,043
 
$
57,819,655
 
Net Income (Loss)
 
$
(1,140,099)
 
$
4,491,405
 
$
(1,500,850)
 
$
15,095,213
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic Earnings (Loss) per Share
 
$
(0.04)
 
$
0.17
 
$
(0.05)
 
$
0.62
 
Diluted Earnings (Loss) per Share
 
$
(0.04)
 
$
0.17
 
$
(0.05)
 
$
0.59