Texas-based oil and gas producer Ring Energy Inc. closed its acquisition of drilling assets in Andrews County, Texas, from Carlyle Group LLC subsidiary Tessara Petroleum Resources LLC.
In exchange for the assets, Ring Energy issued 2,623,948 common shares, valued at $5.80 per share, a $15.2 million gross total. The assets include 4,763 net acres near Ring Energy's core assets on the Central Basin Platform in the Permian Basin. Including additional smaller leases in the area, the deal is estimated to add 5,313 net acres and 55 gross horizontal drilling locations to Ring Energy's portfolio, according to a Dec. 26 news release.
Ring Energy will serve as the operator of the assets, with a 100% working interest and 75% net revenue interest. The deal has an effective date of Nov. 1.
SunTrust Robinson Humphrey acted as financial adviser for the deal.