Permian Basin producer Ring Energy Inc. said Thursday it has begun drilling its first horizontal well in 10 months on the Northwest Shelf leasehold in West Texas, a positive sign in what is proving to be a year of upheaval for the company.


The Badger 709 B No. 6XH oil San Andres well in Yoakum County is to be 1.5 miles long, drilled to a vertical depth of 5,000 feet.

“After drilling the Badger No. 6XH, the drilling rig will move to another horizontal San Andres location currently under construction with plans to drill another well after the new year,” said CEO Paul D. McKinney, who took the helm in September. “These wells will be paid for out of cash surplus currently on hand.

“We have added more to our hedge position for 2021. It is important during volatile markets...