0001078782-11-002540.txt : 20110831 0001078782-11-002540.hdr.sgml : 20110831 20110831144433 ACCESSION NUMBER: 0001078782-11-002540 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20110630 FILED AS OF DATE: 20110831 DATE AS OF CHANGE: 20110831 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RING ENERGY, INC. CENTRAL INDEX KEY: 0001384195 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 980495938 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-53920 FILM NUMBER: 111068297 BUSINESS ADDRESS: STREET 1: 18 1/2 EAST STATE STREET STREET 2: SUITE 202 CITY: REDLANDS STATE: CA ZIP: 92373 BUSINESS PHONE: 909-798-8394 MAIL ADDRESS: STREET 1: 18 1/2 EAST STATE STREET STREET 2: SUITE 202 CITY: REDLANDS STATE: CA ZIP: 92373 FORMER COMPANY: FORMER CONFORMED NAME: Transglobal Mining Corp. DATE OF NAME CHANGE: 20070425 FORMER COMPANY: FORMER CONFORMED NAME: Blanca Corp. DATE OF NAME CHANGE: 20061220 10-Q/A 1 ring10qa063111.htm JUNE 30, 2011 10Q/A FORM 10-Q/A

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q/A


 X . QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended:  June 30, 2011


     . TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



Commission File Number:  000-53920


RING ENERGY, INC.

(Exact Name of registrant as specified  in its charter)


Nevada

98-0406406

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)


18 ½ East State Street, Suite 202, Redlands, CA  

92373

(Address of principal executive offices)

(Zip Code)


(909) 798-8394

(Registrant’s telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  X . No      .


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  X . No      .


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer

      .

Accelerated filer

      .

Non-accelerated filer

      . (Do not check if a smaller reporting company)

Smaller reporting company

  X .


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b-2 of the Exchange Act).

Yes      . No  X .


The registrant has one class of common stock of which 3,548,200 shares were outstanding at August 9, 2011.




 

EXPLANATORY NOTE


The purpose of this Amendment No. 1 to the Quarterly Report of Ring Energy, Inc. on Form 10-Q for the quarterly period ended June 30, 2011, filed with the Securities and Exchange Commission on August 15, 2011 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.  Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

 

No other changes have been made to the Form 10-Q.  This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

 

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.







2




PART II.  OTHER INFORMATION


Item 6. Exhibits


The Exhibits filed as part of this amended report are listed on the Exhibit Index immediately following the signature page hereto, which Exhibit Index is incorporated herein by reference.




SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Ring Energy, Inc.




Date: August 26, 2011

By:  /s/ Robert “Steve” Owens  

Robert “Steve” Owens

Chief Executive Officer

Chief Financial Office




3



EXHIBIT INDEX

 

Exhibit No.

 

Description

 

 

 

31.1

 

Rule 13a-14(a) Certification (1)

 

 

 

32.1

 

 Section 1350 Certification (1)

 

 

 

101. INS

 

XBRL Instance Document

 

 

 

101. SCH

 

XBRL Taxonomy Extension Schema Document

 

 

 

101. CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document

 

 

 

101. DEF

 

XBRL Taxonomy Extension Definition Linkbase Document

 

 

 

101. LAB

 

XBRL Taxonomy Extension Label Linkbase Document

 

 

 

101. PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document

___________________

(1) These exhibits were previously included in the Quarterly Report of Ring Energy, Inc. on Form 10-Q for the quarterly period ended June 30, 2011, filed with the Securities and Exchange Commission on August 15, 2011.





4


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(the &#147;Company&#148;) were prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (&#147;SEC&#148;). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (&#147;GAAP&#148;) have been condensed or omitted pursuant to such rules and regulations. Management of the Company (&#147;Management&#148;) believes that the following disclosures are adequate to make the information presented not misleading. 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The Company has completed one well on this property; however, the Company elected not to pursue further development thereof and therefore, the receipt of future oil production from this well is doubtful. </font></p> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:10pt; COLOR:black">&nbsp;</font></p> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:10pt; COLOR:black">Use of Estimates &#150; The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.</font></p> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:10pt; COLOR:black">&nbsp;</font></p> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:10pt; COLOR:black">Fair Value Accounting &#150; The carrying value of certain of the Company&#146;s financial instruments, including cash and cash equivalents, deposits, prepaid expenses, and current liabilities approximate fair value due to their short-term maturities. The Company utilized Level 1 inputs to value the aforementioned assets and liabilities at the balance sheet dates.</font></p> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:10pt; COLOR:black">&nbsp;</font></p> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:10pt; COLOR:black">Cash and Cash Equivalents &#150; The Company considers all highly liquid financial instruments with original maturities of three months or less to be cash equivalents. 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Jun. 30, 2011
Dec. 31, 2010
Common Stock, par or stated value $ 0.001 $ 0.001
Common Stock, shares authorized 75,000,000 75,000,000
Common Stock, shares issued 3,548,200 3,548,200
Common Stock, shares outstanding 3,548,200 3,548,200
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Statements of Operations (USD $)
3 Months Ended 6 Months Ended 84 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
Revenue from oil and gas properties $ 0 $ 1,258 $ 2,624 $ 6,455 $ 16,744
Production costs 0 (1,429) (600) (3,253) (15,252)
Depreciation, depletion, and amortization 0 0 0 (1,463) (3,125)
Results from oil and gas operations 0 (171) 2,024 1,739 (1,633)
Accounting and legal 9,096 1,955 17,708 14,912 171,453
Advertising and promotion 0 0 0 0 49,614
Consulting 0 0 10,275 0 135,450
Management and director fees 3,750 3,750 7,500 7,500 54,900
Transfer agent and filing 320 695 630 1,430 27,434
Rent 3,300 3,100 6,600 6,100 37,800
Depreciation 299 300 599 600 3,197
Other 207 450 416 1,312 40,187
Total General Administrative Expenses 16,972 10,250 43,728 31,854 520,035
Loss From Operations (16,972) (10,421) (41,704) (30,115) (521,668)
Dividend and interest Income 707 1,047 1,487 1,396 37,468
Interest expense 0 0 0 0 5,221
Loss on impairment of oil and gas properties 0 (22,655) 0 (22,655) (292,917)
Total Other Income and (Expense) 707 (21,608) 1,487 (21,259) (260,670)
Loss Before Income Taxes (16,265) (32,029) (40,217) (51,374) (782,338)
Income tax benefit (expense) 0 0 0 0 0
Net loss before other comprehensive loss $ (16,265) $ (32,029) $ (40,217) $ (51,374) $ (782,338)
Net loss per common share, basic and diluted $ 0.00 $ (0.01) $ (0.01) $ (0.01)  
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Aug. 09, 2011
Document and Entity Information    
Entity Registrant Name RING ENERGY, INC.  
Document Type 10-Q  
Document Period End Date Jun. 30, 2011
Amendment Flag false  
Entity Central Index Key 0001384195  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   3,548,200
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2011  
Document Fiscal Period Focus Q2  
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XML 12 R8.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Related Party Disclosures
3 Months Ended
Jun. 30, 2011
Related Party Disclosures  
Related Party Transactions Disclosure [Text Block]

Note 3: Related Party Transactions

 

The Company’s 600 square foot executive office located in Redlands, California, is currently being leased on a month-to-month basis from a stockholder of the Company at a rate of $1,100 per month. A $1,000 deposit was paid at the commencement of the lease and at June 30, 2011 and December 31, 2010 the Company had prepaid one month of rent. Total rent expense paid for the three months ended June 30, 2011 and 2010 was $3,300 and $3,100, respectively and for the six months ended June 30, 2011 and 2010 was $6,600 and $6,100, respectively.

XML 13 R6.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Organization, Consolidation and Presentation of Financial Statements
3 Months Ended
Jun. 30, 2011
Organization, Consolidation and Presentation of Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1: Basis of Presentation

 

Interim Period - The accompanying unaudited financial statements of Ring Energy, Inc. (the “Company”) were prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. Management of the Company (“Management”) believes that the following disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Form 10-K report for the year ended December 31, 2010.

 

These unaudited financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of Management, are necessary to present fairly the financial position and results of operations of the Company for the periods presented. Operating results for the six months ended June 30, 2011, are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.

 

Development Stage Entity – The Company is considered a development stage entity because its principal oil and gas operations are minimal and have not produced any significant revenue. Total revenue of $16,744 has been recognized since commencement of oil production, but the cost of production and the associated depreciation, depletion and amortization has resulted in a net loss from oil and gas operations of $1,633. Furthermore, the Company has determined that further development of its current leasehold interest is unlikely and has impaired all capitalized costs not expensed as depreciation, depletion and amortization. At June 30, 2011 the Company has cash available to pursue its efforts to acquire oil and gas interests of approximately $885,000; however, until such time as the results of its oil and gas operations are profitable, the Company will be considered a development stage entity.

XML 14 R9.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Subsequent Events
3 Months Ended
Jun. 30, 2011
Subsequent Events  
Subsequent Events [Text Block]

Note 4: Subsequent Events

 

The Company evaluated all events and transactions that occurred after June 30, 2011 through August 11, 2011 the date the Company issued these financial statements. During this period, the Company did not have any material recognizable subsequent events.

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Statements of Cash Flows (USD $)
6 Months Ended 84 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
Net loss before other comprehensive loss $ (40,217) $ (51,374) $ (782,338)
Depreciation, depletion, and amortization 599 2,062 6,322
Write-off of website costs 0 0 7,917
Management fees 0 0 2,000
Interest expense 0 0 5,221
Loss on impairment 0 22,655 292,917
Decrease in oil production receivable 0 2,771 0
(Increase) decrease in prepaid expense 400 (1,300) (1,500)
Increase in deposits 0 0 (1,000)
Decrease in accounts payable and accrued liabilities (5,420) (7,520) 0
Decrease in operating costs payable (1,209) (12,870) 0
Net Cash Flows (Used) by Operating Activities (45,847) (45,576) (470,461)
Website costs 0 0 (7,917)
Acquisition of office furniture 0 0 (8,392)
Acquisition of oil and gas interests 0 0 (296,042)
Net Cash Flows Provided (Used) by Investing Activities 0 0 (312,351)
Proceeds from related party payables 0 0 102,513
Payments on related party payables 0 0 (27,435)
Issuance of common stock 0 0 1,592,990
Net Cash Flows Provided by Financing Activities 0 0 1,668,068
Net Increase (Decrease) in Cash and Cash Equivalents (45,847) (45,576) 885,256
Cash and cash equivalents at beginning of period 931,103 993,860 0
Cash and Cash Equivalents at End of Period 885,256 948,284 885,256
Interest 0 0 0
Taxes 0 0 0
Equity issued as compensation 0 0 2,000
Imputed interest 0 0 5,221
Forgiveness of related party payable $ 0 $ 0 $ 75,078
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Accounting Policies
3 Months Ended
Jun. 30, 2011
Accounting Policies  
Significant Accounting Policies [Text Block]

Note 2: Summary of Significant Accounting Policies

 

Organization - The Company was incorporated in the State of Nevada on July 30, 2004 and currently has a 25% working interest (18¾% net revenue interest) in an oil and gas lease comprising 440 total acres located in Howard County, Texas. The Company has completed one well on this property; however, the Company elected not to pursue further development thereof and therefore, the receipt of future oil production from this well is doubtful.

 

Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

 

Fair Value Accounting – The carrying value of certain of the Company’s financial instruments, including cash and cash equivalents, deposits, prepaid expenses, and current liabilities approximate fair value due to their short-term maturities. The Company utilized Level 1 inputs to value the aforementioned assets and liabilities at the balance sheet dates.

 

Cash and Cash Equivalents – The Company considers all highly liquid financial instruments with original maturities of three months or less to be cash equivalents. The carrying value approximates the fair value of these financial instruments. All cash deposits are held in one financial institution with amounts exceeding $250,000 not being federally insured.

 

Depreciation – The Company maintains office furniture that is recorded at cost and depreciated using the straight-line method over a seven year period. Accumulated depreciation of $3,197 and $2,597 was recorded at June 30, 2011 and December 31, 2010, respectively.

 

Oil and Gas Properties – The Company utilizes the full cost method of accounting for oil and gas properties. Under this method all costs associated with the acquisition, exploration, and development of oil and gas properties, including equipping of productive wells, are capitalized and are subject to amortization and/or periodic impairment. The unit-of-production method was utilized to amortize the Company’s cost of its oil and gas properties subsequent to their initial impairment and until such time that the properties were fully impaired.

 

Net Loss per Common Share, basic and diluted - The computation of net loss per common share is based on the weighted average number of shares outstanding during the periods presented. No potentially dilutive securities or derivative instruments are outstanding.

 

Income Taxes – The Company follows the provisions of uncertain tax positions as addressed in ASC 740-10-65-1 and uses the asset and liability method of accounting for income taxes. Under this method deferred tax assets and liabilities are determined based on differences between financial reporting and the tax basis of assets and liabilities and are measured using enacted tax rates to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized.

 

At June 30, 2011, the Company has a net operating loss carry forward of approximately $737,290 that expires if unused from 2027 through 2031, and a deferred tax asset of approximately $136,070. No tax benefit has been reported in the financial statements since the potential tax benefit is offset by a valuation allowance of approximately the same amount. The Company recognized no increase in the liability for unrecognized tax benefits. The Company has no tax position at June 30, 2011 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company did not recognize any accrued interest related to unrecognized tax benefits or operating expenses as a result of penalties during the periods presented.

XML 19 R2.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Balance Sheets (USD $)
Jun. 30, 2011
Dec. 31, 2010
Cash and cash equivalents $ 885,256 $ 931,103
Deposits 1,000 1,000
Prepaid expenses 1,500 1,900
Total Current Assets 887,756 934,003
Office Furniture (net) 5,195 5,794
Oil and Gas - property and equipment (net) 0 0
Total Assets 892,951 939,797
Accounts payable and accrued liabilities 0 5,420
Oil and gas drilling and operating costs payable 0 1,209
Total Current Liabilities 0 6,629
Total Liabilities 0 6,629
Common Stock, $0.001 par value, 75,000,000 shares authorized, 3,548,200 shares issued and outstanding 3,548 3,548
Paid-in capital 1,671,741 1,671,741
Deficit accumulated during the development stage (782,338) (742,121)
Total Stockholders' Equity 892,951 933,168
Total Liabilities and Stockholders' Equity $ 892,951 $ 939,797
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