Ring Energy, Inc. (NYSE American: REI) has officially closed its acquisition of Central Basin Platform (CBP) assets from Lime Rock Resources, adding ~17,700 net acres in Andrews County, Texas to its growing Permian Basin footprint.

The newly acquired acreage, mostly contiguous to Ring’s existing Shafter Lake operations, brings in 2,300 Boe/d of low-decline, oil-weighted production from over 100 gross wells. Backed by a $120 million PD PV-10 reserve value and $34 million in projected 2025 EBITDA, the deal is expected to be highly accretive and free cash flow positive.

Why It Matters

This move enhances Ring’s position as a leading conventional player in the Permian, adds >40 high-return drilling locations, and opens the door to operational synergies and cost efficiencies. All acreage is 100% held by production, giving Ring full control over development pace and capital deployment.

Deal Snapshot:

Total Consideration: ~$63.6M cash, $10M deferred, 6.5M shares of REI
Location: Andrews County, Texas (Permian Basin)
Production: 2,300 Boe/d (80% oil)
Drilling Inventory: >40 gross locations

“We’re continuing to build a stronger, more resilient company by focusing on shallow decline, high-margin assets that compete immediately for capital,” said CEO Paul McKinney.

This acquisition marks another step in Ring’s strategy to consolidate legacy Permian assets and strengthen its financial and operational foundation for long-term success.