Ring Energy, Inc. Releases First Quarter 2018 Operations Update

MIDLAND, Texas–(BUSINESS WIRE)–Ring Energy, Inc. (NYSE American: REI) (“Ring”) (“Company”) today
released its operations update for the first quarter of 2018. In the
three months ended March 31, 2018, the Company drilled 12 new horizontal
San Andres wells, one new horizontal Brushy Canyon well, three saltwater
disposal wells, and was in the process of drilling two additional new
horizontal San Andres wells at the end of the quarter. Of the 13 drilled
wells, 12 were one mile long and one was ½ of a mile long. In the first
quarter, the Company completed, tested and filed Initial Potentials
(“IPs”) on 12 new horizontal San Andres wells – 11 wells which were
drilled in 2017 and one well drilled in the first quarter of 2018. The
average IP on the 12 completed wells in the first quarter 2018 was
approximately 436 Barrel of Oil Equivalents (“BOE”) per day. In
addition, the Company had 20 new horizontal San Andres wells which were
in varying stages of drilling, completion and testing on March 31, 2018.

As a result, net production for the first quarter of 2018 was
approximately 507,000 BOEs, as compared to net production of 266,000
BOEs for the same quarter in 2017, an approximate 90.6% increase, and
net production of 422,000 for the fourth quarter of 2017, an approximate
20.1% increase. March 2018 average net daily production was
approximately 6,005 BOEs, as compared to net daily production of 3,618
BOEs in March 2017, an approximate 66% increase, and net daily
production of 5,352 in December 2017, an approximate 12.2% increase. The
average estimated price received per BOE in the first quarter 2018 was
$61.50.

Mr. Kelly Hoffman, Ring’s Chief Executive Officer, stated, “The momentum
of 2017 has continued into 2018. Our daily BOEPD is up over 66% during
the past year, and as we stated on our last conference call, we continue
to see double-digit growth quarter over quarter. We are on track to
drill 60 new horizontal wells this year, and with results exceeding all
of our expectations that growth looks to continue for years to come. We
have completed our gas gathering pipeline and are starting to sell our
gas associated with the horizontal drilling, instead of flaring it,
which will significantly increase our gas sales going forward. We have
also started to restimulate some of our older horizontal wells that have
gone through their normal production decline and have seen great
results. This is very cost-effective, and we have seen daily production
increases of over 50% in some wells. The first horizontal well on the
North Gaines Property has been drilled, and management is determining
the most optimum completion technique. Results have been encouraging,
and we are in the process of evaluating the best technique to maximize
our returns. Our first horizontal well in the Brushy Canyon formation on
our Delaware Basin Property has been drilled and is awaiting completion.
We remain focused on our goal of being cash flow positive by year end.
With no debt, a strong balance sheet and a talented team behind us we
look forward to continued growth and success the rest of the year and
beyond.”

About Ring Energy, Inc.

Ring Energy, Inc. is an oil and gas exploration, development and
production company with current operations in Texas.
www.ringenergy.com

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,
2017 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.

Contacts

K M Financial, Inc.
Bill Parsons, 702-489-4447