Delaware Basin

Target Reservoir

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 feet – 6,000 feet respectively. Since acquiring the asset in June 2015, REI has drilled 10 successful vertical Cherry Canyon wells, completed nine wells in different producing intervals, drilled five Brushy Canyon horizontal wells, and revamped the existing disposal infrastructure.

REI currently is seeking a buyer of its Delaware assets and has no plans to drill additional wells on its acreage there. REI will focus on its NWS and CBP assets in the future.

Acreage

Ring’s leasehold position in Culberson and Reeves counties as of December 31, 2021 was 18,729 gross / 18,437 net developed acres. In these counties, the Company has five identified proved vertical drilling locations and four identified proved horizontal locations based on the reserve reports as of December 31, 2021. We believe the Delaware Basin leases contain additional potential drilling locations.

Infrastructure

To reduce the disposal costs associated with the Cherry and Brushy Canyon production Ring previously 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, Ring also owns and operates 39 miles of water gathering pipeline and 23 miles of gas pipeline.