RAM Energy Resources Reports Mid-Year 2007 Proved Reserves; Up Four Percent from Year-End 2006 Level, Replaces 226 Percent of Fi
15 August 2007 - 3:24PM
Business Wire
RAM Energy Resources (Nasdaq:RAME) announced today that the
estimate of the company�s proved reserves at June 30, 2007 totaled
19.3 million barrels of oil equivalent (BOE), reflecting
replacement of 226 percent of the 650 thousand BOE of reserves
produced by RAM during the first six months of 2007. In addition,
estimated proved reserves at mid-year 2007 are approximately 816
thousand BOE, or four percent, above the estimated volume of proved
reserves at year-end 2006 of 18.5 million BOE. The increase in
proved reserves is the product of higher hydrocarbon prices being
received at June 30, 2007 and the addition of reserve volumes added
from drilling as a result of the company�s capital expenditures,
which totaled $28.5 million during the first half. Approximately
one-quarter of the increase in volume of proved reserves during the
first half of 2007 is attributable to the completion of two wells
and the accompanying four offset PUD locations established in the
company�s Barnett Shale acreage, located in the Fort Worth Basin in
Texas. Currently the company has one well drilling on its jointly
held Barnett Shale leases and estimates it has an inventory of nine
PUD locations, 15 probable and seven possible seismically
identified locations, bringing the current total inventory
available to support potential future growth to a substantial 32
locations. Mid-year 2007 estimated proved reserves were comprised
of 11.2 million barrels of oil, 2.1 million barrels of natural gas
liquids and 36 Bcf of natural gas. Proved developed reserves
account for 73 percent of the company�s total proved reserves while
proved undeveloped reserves represent the remaining 27 percent.
These reserve estimates do not include any probable reserves
attributable to the company�s 6,800 net leasehold acres of Barnett
Shale rights located in the Fort Worth Basin, which is now the
company�s third largest producing area. Based on June 30 prices of
$70.69 per barrel for oil (WTI Spot), $45.55 per barrel for natural
gas liquids, $6.40 per MMBtu (Henry Hub spot price) for gas and the
location differentials applicable to the company�s properties, the
estimated future net revenues, before income taxes, attributable to
RAM�s estimated total proved reserves were approximately $638
million, with a present value, discounted at 10 percent (PV-10), of
approximately $344 million. Mid-year 2007 results represent a
significant increase in the PV-10 value attributable to total
proved reserves at year-end 2006 of $270 million, which was based
on prices being received at that time of $58.74 per barrel for oil,
$36.51 per barrel for natural gas liquids and $5.51 per MMBtu for
natural gas. �Currently we have approximately $60 million of cash
and other immediately available liquidity under our recently
increased credit facility which totals $150 million. Our current
cash on hand, cash flow from operations and financial borrowing
power under our recently amended credit facility provide ample
capital to fund our near-term capital needs to carry out our
existing work program,� said Larry Lee, Chairman and CEO.
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 reserves, PV-10, future production,
exploitation and exploration activities, operating costs, estimates
of capital spending, NYMEX prices of oil and gas, company
realizations of oil and gas, the impact of oil and gas derivative
transactions, drilling locations and 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
forwarding-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking
statements include oil and gas prices, exploitation and exploration
successes, 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.
RAM Energy Resources, Inc. is an independent energy company engaged
in the acquisition, exploitation, exploration, and development of
oil and natural 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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