RAM Energy Resources, Inc. (Nasdaq: RAME) today announced it has closed a purchase and sale agreement effecting the strategic divestiture of the company’s North Texas Barnett Shale and Boonsville properties to Milagro Producing, LLC for $43.7 million in cash, prior to customary closing adjustments. The transaction closed on December 8, 2010. This transaction represents the first asset sale to be completed pursuant to RAM’s announced review of strategic alternatives earlier in the year and its decision to target debt reduction through asset divestitures.

Use of Proceeds

Proceeds of $16.0 million will be applied to reduce the outstanding balance on RAM’s revolving credit facility which stood at $133.5 million as of September 30, 2010. The remaining net proceeds will be applied to reduce the outstanding balance on the company’s Term loan which was $113.3 million at September 30, 2010.

Borrowing Base

As a result of the reduction in collateral represented by the asset sale, the company’s borrowing base of $165.0 million has been reset by lenders at $145.0 million. However, as a result of the sale and application of proceeds, RAM’s effective liquidity has improved by approximately $12.1 million and covenant ratios have improved as well.

Advantaged Revenue Stream

In addition to liquidity, RAM’s remaining mix of production and revenue improves as well as a result of the transaction. The company’s actual production of crude and natural gas liquids (NGLs) as a percent of total barrels of oil equivalent production (BOE) reported in the third quarter ended September, 30, 2010 was 63%. Assuming production from the sale of these substantially non-operated natural gas producing properties were absent for the entire third quarter, the proportion of crude and liquids would have risen to 64% of total BOE produced in that period. Similarly the percent of total revenues represented by oil and NGLs would have been 83% versus the actual 81% reported in the third quarter 2010.

Forward-Looking Statements

This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address the company’s pursuit of strategic alternatives, including the anticipated use of proceeds from asset sales to reduce debt, any effort to refinance existing outstanding debt and the objective outcome of the strategic review process, as well as events or developments that the company expects or believes are forward-looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include oil and gas prices, issues arising from the transaction due diligence process, closing adjustments, actions taken and to be taken by the government as a result of political and economic conditions, continued availability of capital and financing, and general economic, market or business conditions as well as other risk factors described from time to time in the company’s filings with the SEC. The company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

About RAM Energy Resources

RAM Energy Resources, Inc. is an independent energy company engaged in the acquisition, exploitation, exploration, and development of oil and gas properties and the marketing of crude oil and natural gas. Company headquarters are in Tulsa, Oklahoma, and its common shares are traded on the Nasdaq under the symbol RAME. For additional information, visit the company website at www.ramenergy.com.

Ram Energy Resources, Inc. (MM) (NASDAQ:RAME)
Gráfica de Acción Histórica
De May 2024 a Jun 2024 Haga Click aquí para más Gráficas Ram Energy Resources, Inc. (MM).
Ram Energy Resources, Inc. (MM) (NASDAQ:RAME)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024 Haga Click aquí para más Gráficas Ram Energy Resources, Inc. (MM).