RAM Energy Resources, Inc. (Nasdaq: RAME) today announced it has closed the sale to a privately-held E&P company of certain non-operated natural gas properties located in eastern Oklahoma for $8.0 million in cash. The transaction closed on December 30, 2010. The sale proceeds were immediately applied to reduce outstanding borrowings under RAM’s revolving credit facility to $116.5 million at December 31, 2010. The disposition of these non-core properties reflects the successful continuation of the company’s implementation of its previously announced plan to target debt reduction through selective asset divestitures.

Pay Down on Senior Secured Credit Facility

Also on December 30, 2010, the company made an $8.0 million voluntary prepayment on the term loan portion of its credit facility, reducing the outstanding balance under the facility to $80.2 million. As a result of the application of sale proceeds and the voluntary prepayment on the term loan, the total amount outstanding under RAM’s senior secured credit facility has been reduced to $196.7 million at December 31, 2010, marking the first time since the company’s 2007 acquisition of Ascent Energy that senior secured borrowings have dropped below the $200.0 million level.

Production and Pricing Parameters of Assets Sold

Third quarter production from the properties which were sold totaled 90,972 MCFE, or 989 MCFE per day, and represented 2.8 percent of RAM’s aggregate third quarter 2010 production. In addition the sale price represents 4.8 times the third quarter of 2010 annualized operating cash flow from the properties.

Borrowing Base Reaffirmed

As announced on December 9, 2010 prior to this latest property sale, the company’s borrowing base was reset to $145.0 million. This latest sale had no impact on the existing borrowing base. As a result of the sale and application of proceeds, however, RAM’s effective liquidity has improved to $28.5 million at December 31, 2010.

Restructure of Oil Hedges

Given the momentum of the economic recovery and its potentially favorable impact on demand and ultimately the price of oil, in December 2010, RAM initiated new derivative positions as well as replaced previously existing derivative floors with collars in an effort to mitigate risk to the company’s anticipated cash flow stream in 2011 and 2012. The company replaced derivatives covering 701,300 barrels of oil production anticipated during the second, third and fourth quarters of 2011 with collars containing floors of $80.00 and ceilings of $105.00. Additionally, RAM added derivatives covering 364,000 barrels of oil anticipated to be produced during the first and second quarters of 2012 with collars containing floors of $80.00 and ceilings of $105.00.

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 which address the company’s pursuit of strategic alternatives through debt reduction, the potential impact from restructuring its oil and gas derivatives, 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, 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.

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