RAME Ram Energy Resources, Inc. (MM)

RAM Energy Resources, Inc. (Nasdaq: RAME) reported today that total 2008 production exceeded previous guidance of 2.550 million barrels of oil equivalent (BOE). In addition, the company announced preliminary capital expenditure plans and assumptions for the 2009 year.

2009 Preliminary Capital Expenditure Plans and Targets

RAM Energy established a preliminary non-acquisition capital budget for 2009 of $40 - $45 million. Consistent with RAM�s historical strategy, non-acquisition capital expenditures are targeted to remain within estimated annual cash flow.

Key assumptions supporting the 2009 preliminary capital expenditure budget are:

• Hydrocarbon prices equal to the calendar 2009 NYMEX strip prices prevailing at year-end 2008 of approximately $53 per barrel of oil, $6 per Mcf for natural gas and $34 per barrel of natural gas liquids (NGLs)
• Production of 2.5 million BOE, approximately equal to total production in 2008
• Implied gains of $16 - $18 million from derivative positions in place at 12/31/08
• Asset sales of $5 - $10 million, a continuation of the program to divest non-strategic assets under which $3.0 million of proceeds were realized in 2008
• EBITDA of $60 - $65 million
• Interest expense of $17 - $18 million
• Voluntary debt repayment of $8 - $12 million to maintain financial flexibility

�The size and scope of our preliminary capital budget for 2009 is a reflection of the current uncertainty of the depth and length of the recession, its negative impact on oil and gas prices and the impasse existing in the capital markets. The aim of the expenditures in the budget is to offset the company�s natural production decline while maintaining flexibility in the current uncertain and volatile hydrocarbon price environment as well as positioning the company strategically for the 2010 year,� said Larry Lee, President and CEO. �Accordingly, we have adopted tactics which target preserving value and liquidity supported by an operational focus on existing low risk, economically attractive opportunities,� added Mr. Lee.

Mature Fields and Developing Fields Planned Activity

In the company�s �mature field area� of Electra/Burkburnett, located in North Texas, the company plans to continue its multi-year lower risk development drilling activity. A total of 45 wells are planned to be drilled in the field during the 2009 year, an amount equal to the wells drilled during 2008. The focus of such drilling is the continued conversion of the company�s substantial inventory of more than 100 proved undeveloped (PUD) locations to proved producing reserves. In addition a large number of non-proved drill sites have been identified.

A total of eight wells were drilled in 2008 in the North East Fitts Unit and Allen Field, both fields located in Pontotoc County, Oklahoma. The company was successful in locating by-passed reserves that set up a number of new drilling locations and recompletions now budgeted for 2009.

In its �developing field area� of South Texas, RAM is active in both the Vicksburg and Wilcox formations, having spud six wells during 2008 in the area. Plans for 2009 call for continued spending to further develop these two plays, which have a combined inventory of 27 PUD locations, 13 probable locations and 31 possible locations.

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 explicit or implicit estimates of, future production, exploitation activities, operating costs, capital spending, cash flow, EBITDA, realized prices of oil and gas, the impact of oil and gas derivative financial instruments, planned asset sales, interest expense 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.

Ram Energy Resources, Inc. (MM) (NASDAQ:RAME)
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