Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 194

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 2
Chunk 194
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,613,320)Revisions of previous quantity estimates(6,728,088)(9,946,459)(621,014)(9,006,845)Balance, December 31, 202382,141,277146,396,32223,218,564129,759,229Purchase of minerals in place————Extensions, discoveries and improved recovery11,495,23610,630,7692,738,45116,005,482Sales of minerals in place(1,140,568)(56,020)(16,361)(1,166,266)Production(4,861,628)(6,423,674)(1,258,814)(7,191,054)Revisions of previous quantity estimates(6,730,246)(730,235)3,621,245(3,230,707)Balance, December 31, 202480,904,071149,817,16228,303,085134,176,684

(1)Six Mcf is deemed the equivalent of one Boe.

(2)At year-end 2022, we began reporting reserves on a three-stream basis, including NGLs separately from natural gas.

Revisions represent changes in previous reserves estimates, either upward or downward, resulting from new information normally obtained from development drilling and production history, a rule that undeveloped reserves must be drilled within five years of originally being booked, and/or resulting from a change in economic factors, such as commodity prices, operating costs or development costs.

Notable changes in proved reserves for the year ended December 31, 2024 included the following:

•Extensions. In 2024, extensions of 16.0 MMBoe were primarily the result of the successful operated drilling program in the Northwest Shelf and Central Basin Platform.

•Purchase of minerals in place. In 2024, the Company did not purchase any additional reserves.

•Sales of minerals in place. In 2024, the Company sold 1.2 MMBoe from the divestiture of certain oil and gas properties,  including vertical wells and associated facilities, within the Central Basin Platform in Andrews and Gaines Counties.

•Revision of previous estimates. In 2024, the negative revisions of prior reserves of 3.2 MMBoe consisted of a positive 0.2 MMBoe related to changes in price (including differentials and gathering related contract change that effects differentials), offset by a negative 3.4 MMBoe related