RAM Energy Resources Reports Mid-Year 2008 Proved Reserves
05 August 2008 - 11:44PM
Business Wire
RAM Energy Resources, Inc. (Nasdaq: RAME) announced today that
estimates of its proved oil and natural gas reserves at June 30,
2008 totaled 41.8 million barrels of oil equivalent (BOE) compared
to 39.4 million BOE at year-end 2007. Reserve Replacement and
Finding Cost Additions to proved reserves of 3.7 million BOE from
all sources replaced 295% of 2008 first half production of 1.256
million BOE; finding and development cost associated with proved
reserve additions from all sources, was approximately $10.09 per
BOE in the first half of 2008. Mid-year 2008 estimated proved
reserves of 41.8 million BOE are composed of 19.3 million barrels
of oil, 5.0 million barrels of natural gas liquids and 105.4 Bcf of
natural gas. Crude oil and natural gas liquids represent 58 percent
of total proved reserves and natural gas reserves represent the
remaining 42 percent of total proved reserves. Of the total proved
reserves, a substantial 65 percent were classified as proved
developed reserves. Prices and PV-10 Value Based on June 30, 2008
average prices of $138.32 per barrel for oil, $72.06 per barrel for
natural gas liquids and $12.27 per Mcf for natural gas, calculated
using SEC mandated methodology, the present value of estimated
future net revenues, before income taxes, discounted at 10 percent
(PV-10), attributable to the estimate of total proved reserves was
$1.6 billion at June 30, 2008. This compares to a PV-10 of $911.5
million at year-end 2007, calculated using year-end 2007 average
prices of $93.90 per barrel for oil, $54.69 per barrel for natural
gas liquids and $7.00 per Mcf for natural gas. The increase in
PV-10 value at mid-year 2008 compared to that of the year-end 2007
is primarily attributable to the increase in reserve volumes
associated from drilling activity and the increases in prices at
mid-year 2008 over those of year-end 2007 for oil, natural gas
liquids and natural gas. RAM continues to employ, as it has in the
past, independent petroleum engineering firms to prepare estimates
of its proved reserves in all its operating areas. Capital
Expenditures During the first half of 2008, the company made total
oil and gas capital expenditures of $37.4 million; $27.27 million
was spent primarily on development and exploitation activities,
$9.0 million was spent on exploration and $1.17 million on the
acquisition of unproven properties and allocated geological and
geophysical expense. The capital spending of $37.4 million was
focused primarily on growing production in our developing fields in
South Texas and in the Barnett Shale, as well as, Fitts/Allen and
other mature fields. Probable and Possible Reserves We are
currently assessing our internal estimates of probable and possible
reserves and intend to release these estimates later this year.
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 estimates of reserves, PV-10, standardized
measure, future production, exploitation activities, operating
costs, capital spending, cash flow, realized prices of oil and gas,
the impact of oil and gas derivative financial instruments, and
events or developments that the company expects or believes are
forward-looking statements. Although RAM 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,
developmental, exploitation and exploration successes, actions
taken and to be taken by governments as a result of political and
economic conditions or other factors, inflation rates, 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 is an independent energy company engaged in the
acquisition, development, exploitation and exploration of oil and
gas properties and the marketing of natural gas and crude oil.
Company headquarters are in Tulsa, Oklahoma, and its common shares
are traded on the Nasdaq Exchange under the symbol RAME. For
additional information, visit the company website at
www.ramenergy.com.
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