Company Also Establishes New Credit Facility
MIDLAND, Texas--(BUSINESS WIRE)--
Ring Energy, Inc. (NYSE MKT: REI) (“Ring” or the “Company”) today
announced it has entered into a definitive agreement with a group of
institutional investors to issue 2,000,000 restricted shares of the
Company’s common stock at a price of $15.00 per share for approximately
$30 million in gross proceeds. The private offering is expected to close
on or about June 17th, 2014, subject to customary closing
conditions. The shares were placed by SunTrust Robinson Humphrey, Inc.,
acting as lead placement agent and Global Hunter Securities, LLC, acting
as co-placement agent in the transaction. The shares of common stock
offered and sold to the investors pursuant to the securities purchase
agreement will not be registered under the Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
The Company also announced today it has entered into an agreement to
establish a new senior secured revolving credit facility with SunTrust
Robinson Humphrey, Inc. as the lead arranger. The new, five-year credit
facility will have a maximum borrowing amount of $150,000,000 with an
initial borrowing base of $40,000,000. The prior credit facility had a
$25,000,000 borrowing base.
Ring’s CEO, Mr. Kelly Hoffman, commented, “With the receipt of these
funds and the establishment of our new credit facility, we now have the
resources at hand to step up our leasing activity and accelerate our
current Permian development program by adding a third drilling rig in
the late third quarter or early fourth quarter of this year. We will
continue to aggressively seek and focus on acquisition opportunities
that complement our existing properties and offer increased shareholder
value through additional drilling locations and reserves.”
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities of Ring Energy nor shall
there be any sale of securities in any state or jurisdiction in which
such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development and
production company with current operations in Texas and Kansas.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of
the “safe-harbor” provisions of the Private Securities Litigation Reform
Act of 1995 that involve a wide variety of risks and uncertainties,
including, without limitations, statements with respect to the Company’s
strategy and prospects. Such statements are subject to certain risks and
uncertainties which are disclosed in the Company’s reports filed with
the SEC, including its Form 10-K for the fiscal year ended December 31,
2013, its Form 10-Q for the quarter ended March 31, 2014 and its other
filings with the SEC. Readers and investors are cautioned that the
Company’s actual results may differ materially from those described in
the forward-looking statements due to a number of factors, including,
but not limited to, the Company’s ability to acquire productive oil
and/or gas properties or to successfully drill and complete oil and/or
gas wells on such properties, general economic conditions both
domestically and abroad, and the conduct of business by the Company, and
other factors that may be more fully described in additional documents
set forth by the Company.
K M Financial, Inc.
Bill Parsons, 702-489-4447
Source: Ring Energy, Inc.