Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 88

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 indicate that the properties are 

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impaired, the amount of the impairment is offset to the capitalized costs to be amortized. The following table shows total depletion and the depletion per barrel-of-oil-equivalent rate, for the three and nine months ended September 30, 2025 and 2024.For the Three Months EndedFor the Nine Months EndedSeptember 30, 2025September 30, 2024September 30, 2025September 30, 2024Depletion$24,902,199 $25,302,058 $72,381,413 $73,056,856 Depletion rate, per barrel-of-oil-equivalent (Boe)$13.02 $13.68 $13.15 $13.57 In addition, capitalized costs less accumulated depletion and related deferred income taxes are not allowed to exceed an amount (the full cost ceiling) equal to the sum of:1)the present value of estimated future net revenues discounted at ten percent computed in compliance with SEC guidelines;2)plus the cost of properties not being amortized;3)plus the lower of cost or estimated fair value of unproven properties included in the costs being amortized;4)less income tax effects related to differences between the book and tax basis of the properties.Due to the lower oil prices impacting the present value of estimated future net revenues, during the three and nine months ended September 30, 2025, the Company recorded impairments on oil and natural gas properties as a result of the ceiling test of $72,912,330 and $72,912,330, respectively.  No such impairments were recorded during the three and nine months ended September 30, 2024.

Land, Buildings and Structures, Equipment, Software, Leasehold Improvements, Automobiles, and UAV – Land, buildings and structures, equipment, software, leasehold improvements, automobiles, and unmanned aerial vehicles ("UAV") are carried at historical cost, adjusted for impairment loss and accumulated depreciation (except for land). Historical costs include all direct costs associated with the acquisition of land, buildings and structures, equipment, software, leasehold improvements, automobiles, and UAV and placing them in service. Upon sale or abandonment, the cost of the fixed asset(s) and related accumulated depreciation are removed from the accounts and any gain or loss is recognized.Depreciation of buildings and structures, equipment, software, leasehold improvements, automobiles, and UAV is calculated using the