Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 107

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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NOTE 9 — ASSET RETIREMENT OBLIGATIONThe Company records the obligation to plug and abandon oil and gas wells at the dates properties are either acquired or the wells are drilled. The asset retirement obligation is adjusted each quarter for any liabilities incurred or settled during the period, accretion expense and any revisions made to the costs or timing estimates. The asset retirement obligation is incurred using an annual credit-adjusted risk-free discount rate at the applicable dates. A reconciliation for the asset retirement obligation during the six months ended June 30, 2025 is as follows:Balance, December 31, 2024$26,382,517 Liabilities acquired2,587,179 Liabilities incurred23,158 Liabilities settled(141,985)Accretion expense708,800 Balance, June 30, 2025$29,559,669 The following table presents the Company's current and non-current asset retirement obligation balances as of the periods specified.June 30, 2025December 31, 2024Asset retirement obligations, current$414,974 $517,674 Asset retirement obligations, non-current29,144,695 25,864,843 Asset retirement obligations$29,559,669 $26,382,517 

NOTE 10 — STOCKHOLDERS' EQUITYAs of December 31, 2024, the Company had 78,200 exercisable common warrants outstanding, with a contractual exercise price of $0.80 per warrant, expiring five years from initial issuance in October 2020. During the six months ended June 30, 2025 and 2024, no common warrants were exercised. The following table reflects the common warrants exercised, including the proceeds received for such exercises. As of June 30, 2025, there remained 78,200 exercisable common warrants.Common WarrantsExercise PriceProceeds ReceivedExercisable, December 31, 202378,200$0.80 Exercised—— $— Exercisable, March 31, 202478,200$0.80 Exercised —— $— Exercisable, June 30, 202478,200$0.80 Exercisable, December 31, 202478,200$0.80 Exercised—— $— Exercisable, March 31, 202578,200$0.80