Boston, MA 06/18/2014 (wallstreetpr) – Ring Energy Inc (NYSEMKT:REI), the oil and gas exploration, development and manufacturing company, has signed a definitive agreement with a set of institutional investors to issue as many as 2 million restricted shares of its common stock valued at $15 a share for around $30 in gross proceeds.
SunTrust Robinson Humphrey, Inc. played the role of the lead placement agent while Global Hunter Securities, LLC, acted as the co-placement in the deal.
New Credit Facility
Ring Energy Inc (NYSEMKT:REI), which has its oil and gas operations currently in Kansas and Texas, also announced that the company has entered into an agreement with the chief placement agent, SunTrust Robinson Humphrey, Inc., whereby the two together seek to start a new senior revolving credit facility. SunTrust will be the lead arranger in the agreement. The proposed five year facility will offer borrowing amount of up to $150 million. The initial borrowing base for the amount has been decided to be $40 million, in contrast to the previous credit facility’s borrowing base, which was only $25 million.
Expansion Strategy
The oil and gas company Chief Executive Officer, Kelly Hoffman, said that Ring Energy Inc (NYSEMKT:REI) has opened up several opportunities for itself with the reception of funds and the establishment of the company’s new credit facility. He said that the company now has at its disposal the resources to expand its leasing activity. It can also speed up the current Permian development scheme by deploying a third drilling rig, which it expects to add by the end of the third quarter or by the start of the fourth quarter of 2014. Hoffman said that the company will continue to aggressively follow and concentrate on take- over potentials that will complement its current properties. Ring Energy Inc (NYSEMKT:REI) seeks to offer its shareholder increased value by bringing in more drilling reserves and sites.
