Company: REI
Filing Date: 2025-02-28
Form Type: 8-K
Source: 0001628280-25-009049
Chunk: 0

Company: RING ENERGY, INC.
Filing Date: 2025-02-28
Form: 8-K
Item: Item 1.01
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Item 1.01

Entry into a Material Definitive Agreement.

On February 25, 2025, Ring Energy, Inc. (the “ Company”), as buyer, and Lime Rock Resources IV-A, L. P. (“ LRRA”), and Lime Rock Resources IV-C, L. P. (“ LRRC” and with LRRA, “ Lime Rock”), as seller, entered into a Purchase and Sale Agreement (the “ Purchase Agreement”). Pursuant to the Purchase Agreement, the Company will acquire (the “ Lime Rock Acquisition”) interests in oil and gas leases and related property of Lime Rock located in Andrews County, Texas, for a purchase price (the “ Purchase Price”) of $90 million in cash with $80 million due at closing and $10 million due on the nine month anniversary of the closing (the “ Cash Consideration”) and7,388,799 shares (the “ Stock Consideration”) of common stock, par value $0.001 per share of the Company. The Purchase Price is subject to customary purchase price adjustments with an effective date of October 1, 2024. In connection with the Purchase Agreement, the Company deposited $5.0 million in cash into a third-party escrow account as a deposit pursuant to the Purchase Agreement, which will be credited against the Purchase Price upon closing of the Lime Rock Acquisition and used to backstop Lime Rock’s indemnity obligations under the Purchase Agreement.

The Purchase Agreement contains customary representations and warranties for transactions of this nature. The Purchase Agreement also contains customary pre-closing covenants of the parties, including the obligation of Lime Rock to conduct its business as a reasonably prudent operator and consistent with past practice and to refrain from taking certain specified actions, subject to certain exceptions.

The Lime Rock Acquisition is expected to close by the end of the first quarter of 2025, subject to the satisfaction of customary closing conditions, including (i) specified materiality standards, the accuracy of the applicable counterparty’s representations and warranties in the Purchase Agreement, (ii) the applicable counterparty’s performance or compliance in all material respects with the covenants contained in the Purchase Agreement, (iii) the absence of certain legal matters prohibiting the Lime Rock Acquisition, (iv) the Stock Consideration being authorized for listing on the NYSE American LLC, and (v) each counterparty being ready to deliver specified closing deliverables. The Purchase Agreement provides for termination rights, including the right of either party to terminate the Purchase Agreement if the Lime Rock Acquisition is not consummated on