RAM Energy Resources Reports 2008 Year-End Proved Reserves
11 März 2009 - 9:06PM
Business Wire
RAM Energy Resources, Inc. (Nasdaq: RAME) announced today that
estimates of its proved oil and natural gas reserves at December
31, 2008 totaled 36.2 million barrels of oil equivalent (BOE). The
company added 5.2 million BOE of reserves during the year primarily
as a result of drilling activity which was slightly more than
double RAM�s record production of 2.55 million BOE. However, year
over year reserves declined eight percent, principally stemming
from the impact of lower hydrocarbon prices at year-end 2008.
Reserve Composition
Year-end 2008 estimated proved reserves of 36.2 million BOE are
composed of 14.5 million barrels of oil, 4.6 million barrels of
natural gas liquids and 102.5 Bcf of natural gas. Crude oil and
natural gas liquids represent 53 percent of total proved reserves
and natural gas reserves represent the remaining 47 percent of
reserves. Of the total proved reserves, nearly 61 percent were
classified as proved developed reserves, providing a substantial
underpinning to cash flow in the 2009 year.
Prices and PV-10 Value
Based on 2008 year-end average prices of $44.60 per barrel for
oil, $22.67 per barrel for natural gas liquids and $5.71 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 $311.4 million at year-end
2008. This compares to a PV-10 of $911.5 million at year-end 2007,
calculated using year-end 2007 prices of $93.90 per barrel for oil,
$54.69 per barrel for natural gas liquids and $7.00 per Mcf for
gas. The decrease in PV-10 value at year-end 2008 compared to that
of the prior year is primarily attributable to the decline in
hydrocarbon prices prevailing at year-end 2008 compared to those at
year-end 2007. The price of oil in particular was 52 percent lower
at year-end 2008 than at year-end 2007 and exerted a significant
impact on the PV-10 value, given the percentage of oil and natural
gas liquids in the firm�s hydrocarbon mix. 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.
Had the prices at year-end 2008 also prevailed at year-end 2007,
our 2008 year end proved reserve volumes would have represented a
six percent increase and our PV-10 value attributable to the 2008
estimate of proved reserves would have declined only about 10
percent.
�In spite of a successful year in 2008 with the drillbit, as
represented by our overall drilling success rate of 99 percent and
reserves added from a modest acquisition, the dramatic decline in
hydrocarbon prices prevailing at year-end 2008 compared to those at
the prior year end obscured much of the progress we achieved
operationally. I am pleased that our total additions to proved
reserves from extensions and discoveries were 200 percent of our
record 2008 production,� said Larry Lee, President 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
estimates of reserves, estimates of prior year reserves and PV-10
based on subsequent year end pricing, estimates of PV-10, the
standardized measure, realized prices of oil and gas, the impact of
oil -Table Follows-
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.
�
RAM Energy Resources, Inc. Total Net Proved
Reserves As of December 31, 2008 � � � � � �
OIL
GAS NGL EQUIVALENT MBBLS MMCF
MBBLS MBBLS � Proved Reserves Beginning of Year
19,545 93,357 4,271 39,376 � Extensions and Discoveries 641 19,435
1,126 5,007 � Purchases of Reserves 151 135 - 174 � Production
(1,187 ) (6,082 ) (354 ) (2,554 ) � Sales of Reserves (85 ) (701 )
- (202 ) � Revisions of Previous Estimates (4,569 ) (3,632 ) (429 )
(5,603 ) � Proved Reserves End of Year 14,496 � 102,512 � 4,615 �
36,196 � � � ____________ (1) Pricing: Oil = $44.60/Bbl; Natural
Gas = $5.71/Mcf; NGL = $22.67/Bbl
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