Target Reservoir
Ring Energy, Inc. (REI) acquired its Northwest Shelf (NWS) assets in April 2019. The NWS is targeting the San Andres formation, a conventional shallow carbonate reservoir at approximately 5,000 feet (approximately 86% oil.)
Infrastructure
The purchase of the NWS assets included 1,385 surface acres on which 13 saltwater disposal (SWD) wells were drilled and completed with a permitted capacity of ~241,000 Bw/d. Other infrastructure assets in the purchase included 15 water supply wells with greater than 12,000 Bw/d of supply capacity, 5 frac ponds that are centrally located, and 3 caliche pits that provide all the caliche needed for road materials and new locations. This REI-owned and operated infrastructure provides significant savings in drilling, completion, and ongoing monthly operating costs.
Top Tier Returns
The benefits of horizontal drilling enable San Andres reserves to be economically accessed beyond traditional field boundaries at reduced development costs, have increased ultimate oil recoveries, and generate individual well IRRs that exceed an average of 98% on prices as low as $40/bbl oil net realized price received and includes electric submersible pump-to-rod conversion costs.