Midland, TX-based Ring Energy Inc. announced new results Thursday from its three-well San Andres horizontal drilling program in the Permian Basin’s Central Basin Platform (CBP).
Ring reported that its Augustus #1H and Tiberius #1H wells have produced 602 boe/d and 448 boe/d respectively through 45 days, with production 95% weighted to oil. The company said it is also “very pleased” with the early results from its Caesar #1H well but did not disclose specific numbers since the well has been in production fewer than 30 days.
In September, Ring announced that it had doubled its position in the CBP to around 16,500 acres. With that acquisition the exploration and production (E&P) company boosted its potential drilling locations to over 275 gross wells.
As producers have been looking to grab up assets in the Permian in 2016, the CBP has drawn less attention from producers than the Midland sub-basin to the east and the Delaware sub-basin to the west.
Ring said it will continue to “aggressively look for prospects and acreage that complement its existing positions” in the CBP and the Permian’s Delaware sub-basin.
Ring also announced a preliminary 2017 capital expenditure budget Thursday of $70 million. The results from the San Andres program mean most of the 2017 budget will go to developing the CBP, management said.
In 2017 the E&P said it plans to drill 22 horizontal wells and six vertical wells in the CBP, as well as saltwater disposal wells. In the Delaware, the company said it plans to drill eight vertical wells and perform work on 12 existing wells while continuing to upgrade its existing infrastructure in the sub-basin.
Ring said the preliminary budget does not include new horizontal wells in its “Brushy Canyon” portion of the Delaware. The E&P said it will “reassess the possibilities in the second half of 2017” looking at “current progress, commodity prices and other factors.”