Ring Energy Inc. based in Midland, Texas has granted an extension to the undisclosed buyer of its $315 million in assets in the Delaware Basin of West Texas. But Ring still hopes to have the transaction closed by the end of the month.
It was in April in the middle of the coronavirus pandemic that Ring agreed to divest nearly 20,000 acres in Culberson and Reeves counties in Texas but it did not identify the buyer. The deal included a $500,000 non-refundable deposit and Ring said at the time it expected the acquisition to be finalized in two months.
Ring management stated that the buyer has requested an extension to October 29, 2020, and, as a show of good faith, has wired the Company an additional non-refundable $1 million.
The company went on to say that the on-going conversations with the buyer and the additional wired funds has continued to provide management with a heightened level of confidence that the transaction will close by the end of the month, however management has made it clear there will be no further extensions.
As stated previously, the proceeds from the sale will be used to reduce the outstanding balance on the Company’s senior credit facility.
Source: Ring Energy