Ring Energy, Inc. (REI)’s Delaware Basin asset is located in northern Culberson and Reeves counties, Texas, with production primarily from the “conventional” Delaware Mountain Group which includes the Bell Canyon, Cherry Canyon, and Brushy Canyon formations ranging in depth from 2,000’– 6,000’ respectively. Since acquiring the asset in June 2015, REI has drilled 10 successful vertical Cherry Canyon wells, completed 9 wells in different producing intervals, drilled five Brushy Canyon horizontal wells, revamped the existing disposal infrastructure, and continues to enhance product takeaway capacity. REI believes the asset also has additional horizontal potential in both the Cherry and the deeper Brushy Canyon Formations as evidenced by the log and core analyses from recently drilled wells.
The success of REI’s first horizontal Brushy Canyon test well drilled in early 2018 resulted in three additional Brushy Canyon development wells being drilled in 4Q’18.
To reduce the disposal costs associated with the Cherry and Brushy Canyon production REI purchased 1,328 surface acres and drilled eight saltwater disposal wells with permitted capacity of 95,000 Bw/d. To further reduce operating overhead and transportation costs, REI also owns and operates 39 miles of water gathering pipeline and 23 miles of gas pipeline.