Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 96

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 16
Chunk 96
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 table shows total depletion and the depletion per barrel-of-oil-equivalent rate, for the years ended December 31, 2024, 2023, and 2022.For the Years Ended December 31,202420232022Depletion$97,238,673 $87,442,546 $55,029,956 Depletion rate, per barrel-of-oil-equivalent (Boe)$13.52 $13.22 $12.19 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.No impairments on oil and natural gas properties as a result of the ceiling test were recorded for the years ended December 31, 2024,  2023 or 2022.

Land, Buildings, Equipment, Software, Leasehold Improvements, Automobiles, Buildings and Structures – Land, buildings, equipment, software, leasehold improvements, automobiles, buildings and structures 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, equipment, software, leasehold improvements, automobiles, buildings 

F-11

and structures 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, equipment, software, leasehold improvements, automobiles, buildings and structures is calculated using the straight-line method based upon the following estimated useful lives:Leasehold improvements3‑5 yearsOffice equipment and software3‑7 yearsEquipment5‑10 yearsAutomobiles4 yearsBuildings and structures7 yearsThe following table provides information on the Company's depreciation expense for the years ended December 31, 2024, 2023, and 2022.For the Years Ended December 31,202420232022Depreciation expense$405,772$364,024$205,600During the year ended December 31, 2023, the Company sold some of its