Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 167

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 1A
Chunk 167
---
Item 1A:     Risk Factors

We are subject to various risks and uncertainties in the ordinary course of our business. The following summarizes significant risks and uncertainties that may adversely affect our business, financial condition, or results of operations. We cannot assure you that any of the events discussed in the risk factors below will not occur. Further, the risks and uncertainties described below are not the only ones we face. Additional risks not presently known to us or that we currently deem immaterial may also materially affect our business. Readers should carefully consider the risk factors included below as well as those matters referenced in this Report under “Forward-Looking Statements” and other information included and incorporated by reference into this Report.

Risks Relating to Our Business, Operations, and Strategy

19

Table of Contents

Part of our strategy involves using some of the latest available horizontal drilling and completion techniques, which involve additional risks and uncertainties in their application compared to vertical drilling.

Our operations use some of the latest horizontal drilling and completion techniques as developed by us, other oil and natural gas exploration and production companies and our service providers. The additional risks that we face while drilling horizontally include, but are not limited to, the following:

•drilling wells that are significantly longer and/or deeper than vertical wells;

•landing our wellbores in the desired drilling zones;

•staying in the desired drilling zones while drilling horizontally through the formations;

•running our casing the entire length of wellbores; and

•being able to run tools and other equipment consistently through horizontal wellbores.

Risks that we face while completing our horizontal wells include, but are not limited to, the following:

•the ability to fracture or stimulate the planned number of stages in a horizontal wellbore;

•the ability to run tools and other equipment the entire length of a wellbore during completion operations; and

•the ability to successfully clean out a wellbore after completion of the final fracture stimulation stage.

If our assessments of purchased properties are materially inaccurate, it could have a significant impact on future operations and earnings.

The successful acquisition of producing properties requires assessments of many factors, which are inherently inexact and may be inaccurate, including the following:

•unforeseen title issues;

•the amount of recoverable reserves;

•future oil and natural gas prices;

•estimates of operating costs;

•estimates of future development costs;

•estimates of the costs and timing of plugging and abandonment of wells; and

•potential environmental and other liabilities.

Our assessments