Ring Energy, Inc. (NYSE American: REI) announced it has commenced an underwritten public offering of $60 million of common stock shares. The company also intends to grant underwriters a 30-day option to purchase up to an additional $9 million of shares under the same terms.

The offering remains subject to market and other conditions, with no assurance regarding completion timing or final size and terms, according to the company's statement.

Ring Energy plans to use net proceeds from the offering to repay outstanding borrowings under its senior secured revolving credit facility. Any remaining proceeds will be allocated toward general corporate purposes.

Mizuho, BofA Securities and Raymond James are serving as joint book-running managers for the offering.

The offering will be conducted through a prospectus supplement and accompanying base prospectus filed as part of an effective shelf registration statement with the Securities and Exchange Commission on Form S-3.

Ring Energy is an independent oil and natural gas exploration and production company based in The Woodlands, Texas. The company focuses on development, production, acquisition and exploration activities in the Permian Basin of Texas, targeting oil and liquids rich producing formations in the Northwest Shelf and Central Basin Platform.