RAME Ram Energy Resources, Inc. (MM)

RAM Energy Resources, Inc. (Nasdaq: RAME) today announced third quarter 2009 production, earnings and financial highlights.

Larry Lee, Chairman and CEO stated “We continue to be pleased with production volumes, given the small amount of capital spent in the quarter. We are also pleased to report that cash flow generated from our operating activities combined with proceeds from asset sales has enabled us to fund all of our non-acquisition capital expenditures through the first nine months of this year and modestly reduce debt.”

Third quarter production of 630,000 barrel equivalents (BOE), was down 2% from 645,000 BOE in the third quarter 2008. Approximately one-half of the decline in the quarter to quarter comparison is attributable to the previously announced sale of approximately 140 BOE per day of production, impacting two months in the third quarter of 2009. Year to year comparisons were also influenced by the substantially reduced level of capital spent during the current quarter reflected in drilling and other activity compared to the level of drilling and other activity in last year’s third quarter in which non-acquisition capital expenditures totaled $19.5 million and total capital expenditures were $29.3 million. The third quarter 2009 saw modest production increases sequentially from the company’s developing fields category of properties but a decline in production from mature oil properties resulting from the slowdown in drilling compared to production in the second quarter 2009 of 652,000 BOE.

Free cash flow (a non-GAAP measure) was $8.7 million, or $0.12 per share, for the third quarter 2009 compared to $26.7 million, or $0.35 per share, in last year’s much higher hydrocarbon priced third quarter. Free cash flow fully funded third quarter non-acquisition capital expenditures of $4.0 million. EBITDA (a non-GAAP measure) was $11.1 million for the third quarter, representing a decrease from the $31.5 million in last year’s third quarter.

For the third quarter 2009, RAM’s adjusted net loss to common shareholders (a non-GAAP measure) was $1.9 million, or a loss of $0.03 per share compared with adjusted net income of $11.4 million, or $0.15 per share in last year’s third quarter. The calculation of adjusted net income to common shareholders excludes the after tax impact of unrealized, non-cash, mark-to-market (MTM) gains or losses associated with oil and natural gas derivatives covering future periods and other items. Such MTM gains or losses are typically not included in the published estimates of the company’s financial results made by certain securities analysts. Recent volatility in the price of oil and natural gas has created swings in the MTM value of RAM’s derivatives, making adjusted net income to shareholders a more consistent measure of financial performance comparable from period to period. Including MTM losses of $1.3 million for the third quarter, together with realized gains of $483,000 resulting from contract settlements net of amortized premium costs of derivatives, RAM reported a net loss to shareholders in the third quarter of $2.7 million, or $0.04 per share.

Commodity Prices and Revenues

The company’s realized price for oil fell 44% to an average of $65.74 per barrel in the third quarter of 2009, compared with last year’s third quarter average realized price of $116.81 per barrel. Similarly, the company’s realized price for natural gas declined 65% to an average of $3.10 per thousand cubic feet (Mcf) compared to an average of $8.85 per Mcf in the third quarter of 2008. In addition, the price of NGLs dropped 56%, averaging $28.84 per barrel for this year’s third quarter. The company’s 2% lower production combined with a 51% lower hydrocarbon price combined to reduce oil and gas sales by 52% to $25.9 million in the current quarter compared to oil and gas sales in the year-ago quarter. The impact from the fall in oil and gas sales was further exacerbated by net losses recorded from derivatives.

The volatility in commodity prices since June 30, 2009 resulted in net realized derivative gains of $483,000 and $1.3 million in unrealized MTM derivative losses of for the third quarter. The combined net loss of $800,000 further reduced total revenues and other operating income to $25.1 million compared to the year ago level of $83.5 million, which included a net $29.2 million gain from derivatives. At September 30, 2009 the company had derivative contracts in place covering approximately 2.1 million BOE for the next five quarters. For the fourth quarter 2009, RAM has a total of 276,000 barrels of oil, or 3,000 barrels per day of its production hedged at an average floor price per barrel of $65.00 and also has a total of 1.1 billion cubic feet, or 11,989 Mcf per day, of its natural gas production hedged at an average floor price of $5.00 per Mcf.

Costs and Expenses

Despite the benefit derived from a 14% decline in cash operating expenses, operating income for the third quarter fell by a much greater amount driven principally by substantially lower hydrocarbon prices. Production expenses were $15.51 per BOE in the third quarter of 2009, or a total of $9.8 million, 3% above the $15.08 per BOE in the previous year’s quarter. Production taxes were $2.10 per BOE in this year’s third quarter, or a total of $1.3 million, 57% below the $4.76 per BOE posted in the comparable 2008 quarter. The decrease in production taxes is principally the result of lower commodity prices in the current quarter compared to those prices prevailing in the third quarter of 2008. General and administrative expenses of $4.2 million fell 14% below those expenses in last year’s third quarter of $5.0 million as a result of accounting function consolidation, lower employee-related costs and lower professional fees compared to the year-ago quarter.

Capital Expenditures

Oil and natural gas capital expenditures totaled $4.0 million in the third quarter 2009; $3.9 million to developmental and exploratory activities, and $0.1 million for the acquisition of proved properties. During the third quarter, RAM participated in the drilling of 11 gross (10 net) development wells 5 gross (5 net) of which were completed and capable of commercial production. Of the remaining, 6 gross (5 net) wells were drilling or awaiting completion and 2 gross (0.2 net) were drilled in a previous quarter and were waiting on completion at the end of the quarter. In last year’s third quarter, total non-acquisition capital expenditures were $19.5 million and led to the drilling of 15.8 net development wells and one exploratory well. Through the nine months ended September 30, 2009, aggregate oil and natural gas capital expenditures totaled $21.7 million. During the nine months of 2008, total capital expenditures totaled $66.7 million.

Long-Term Debt and Liquidity

Long-term debt at September 30, 2009 under RAM’s credit facility totaled $250.2 million, composed of $110.2 million of term debt and $140.0 million outstanding under its revolver, which is currently subject to a $175.0 million borrowing base. Proceeds from non-strategic asset sales in late July coupled with cash flow in excess of capital spending during the third quarter was used to reduce long-term debt from $255.4 million in the second quarter 2009. Based on the borrowing base and the amount drawn on its revolver, at September 30, 2009 the company had $35.0 million available under its facility; however, advances in excess of $163.3 million at September 30, 2009 would have been restricted by a financial ratio covenant under the facility. On September 28, 2009 RAM announced that the company’s previous borrowing base of $175.0 million on its revolving credit facility was reaffirmed by its commercial lenders as a result of RAM’s regularly scheduled semi-annual borrowing base redetermination.

Interest expense for the third quarter 2009 was $5.6 million. The increase in interest expense compared to last year’s $4.8 million is attributable to higher average debt outstanding and a higher effective average interest rate partially attributable to the amendment in June 2009 to the company’s credit facility raising the base cash interest rate on both the revolving facility and the term facility and adding payment-in-kind interest to the term note in exchange for a relaxation of certain covenants in each facility. RAM’s weighted average cost of borrowed funds in the third quarter under its facility agreement was 8.9%.

Nine Month 2009 Results

The company’s nine month production totaled 1.94 million BOE, up 2% from 1.90 million BOE during the same period in 2008. The slight gain in production was more than offset by average hydrocarbon prices which, on a BOE basis, were 57% lower in the nine months of 2009 compared with the year ago period. As a result, oil and gas sales fell 56% to $68.4 million compared to $155.3 million last year.

Free cash flow per share (a non-GAAP measure) for the first nine months of 2009 was $33.7 million, or $0.45 per share, compared to $66.1 million, or $0.96 per diluted share, for the same period last year. Free cash flow of $33.7 million more than funded non-acquisition oil and gas capital expenditures of $20.7 million made during the first nine months of the year. EBITDA (a non-GAAP measure) was $43.2 million for the first nine months of 2009 compared to $87.5 million for the same period last year.

Guidance

Based on production results through the nine months, the NYMEX strip of prices prevailing at September 30, 2009 for oil and natural gas and the company’s outlook for the remainder of the year, RAM expects aggregate production for the 2009 year to meet or exceed its stated previous target of 2.5 million BOE, including the negative impact from its non-strategic divestiture program currently underway. In addition, with interest costs aggregating to $12.8 million through the nine months of 2009, the company reaffirms the high end of its previously targeted interest cost range of $17.0 - $18.0 million for the 2009 year. Further, the company continues to target EBITDA at the lower-end of the $60.0 - $65.0 million range for the current year. Based on prices for oil and gas expected to prevail during the fourth quarter 2009 and existing company derivative positions, management expects that cash flow will continue to be sufficient to fund the remainder of the company’s capital expenditures for the year targeted to aggregate $30.0 - $35.0 million.

RAM to Webcast Third Quarter 2009 Conference Call

The company’s teleconference call to review third quarter results will be broadcast live on a listen-only basis over the internet on Thursday, November 5, 2009 at 10:00 a.m. Central Standard Time. Interested parties may access the webcast by visiting the RAM Energy Resources, Inc. website at www.ramenergy.com. From the home page, select the Investor Relations tab and then click on the microphone icon. The teleconference may be accessed by dialing 1.866.713.8567 (domestic) or 1.617.597.5326 (international) and providing the call identifier “25857552” to the operator. The webcast will be available for replay on the company’s website. An audio replay will be available until November 12, 2009 by dialing 1.888.286.8010 (domestic) or 1.617.801.6888 (international) and using pass code “78488223”.

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 targets for production, costs, property dispositions, EBITDA, free cash flow, estimates of capital spending, anticipated prices of oil and gas, the impact of oil and gas derivatives, drilling activities, borrowing availability, 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 forward-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.

       

RAM Energy Resources, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

  September 30, December 31, 2009 2008 (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 116 $ 164 Cash, restricted - 16,000 Accounts receivable: Oil and natural gas sales, net of allowance of $50 ($50 at December 31, 2008) 11,141 8,702 Joint interest operations, net of allowance of $515 ($515 at December 31, 2008) 795 818 Other, net of allowance of $35 ($35 at December 31, 2008) 1,329 4,045 Derivative assets 1,012 21,006 Prepaid expenses 1,568 2,330 Deferred tax asset 3,705 - Other current contingencies - 2,816 Other current assets   4,083     4,141   Total current assets 23,749 60,022 PROPERTIES AND EQUIPMENT, AT COST: Proved oil and natural gas properties and equipment, using full cost accounting 699,162 683,341 Other property and equipment   9,237     9,460   708,399 692,801 Less accumulated depreciation, amortization and impairment   (478,839 )   (396,301 ) Total properties and equipment 229,560 296,500 OTHER ASSETS: Deferred tax asset 48,823 28,724 Derivative assets - 4,531 Deferred loan costs, net of accumulated amortization of $2,402 ($1,282 at December 31, 2008) 5,219 4,015 Other   1,969     2,053   Total assets $ 309,320   $ 395,845   LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable: Trade $ 13,390 $ 26,370 Oil and natural gas proceeds due others 8,015 7,218 Other 27 982 Accrued liabilities: Compensation 1,760 2,893 Interest 2,889 865 Franchise taxes 942 1,300 Income taxes 224 399 Contingencies - 16,000 Deferred income taxes - 5,779 Asset retirement obligations 1,043 1,093 Long-term debt due within one year   142     160   Total current liabilities 28,432 63,059 OIL & NATURAL GAS PROCEEDS DUE OTHERS 1,740 2,523 DERIVATIVE LIABILITIES 936 - LONG-TERM DEBT 250,285 250,536 ASSET RETIREMENT OBLIGATIONS 30,430 29,106 COMMITMENTS AND CONTINGENCIES 900 900   STOCKHOLDERS' EQUITY (DEFICIT): Common stock, $0.0001 par value, 100,000,000 shares authorized, 80,648,674 and 79,423,574, shares issued, 76,865,587 and 78,532,134 shares outstanding at September 30, 2009 and December 31, 2008, respectively 8 8 Additional paid-in capital 222,432 220,800 Treasury stock - 3,783,087 shares (891,440 shares at December 31,2008) at cost (6,167 ) (4,027 ) Accumulated deficit   (219,676 )   (167,060 ) Stockholders' equity (deficit)   (3,403 )   49,721   Total liabilities and stockholders' equity (deficit) $ 309,320   $ 395,845            

RAM Energy Resources, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

  Three months ended September 30, Nine months ended September 30, 2009   2008 2009   2008 REVENUES AND OTHER OPERATING INCOME: Oil and natural gas sales Oil $ 18,276 $ 34,483 $ 45,740 $ 100,127 Natural gas 4,607 13,980 15,564 40,207 NGLs 2,999 5,729 7,134 14,945 Realized gains (losses) on derivatives 483 (5,054 ) 19,032 (14,590 ) Unrealized gains (losses) on derivatives (1,283 ) 34,302 (26,085 ) (4,765 ) Other   49     69     177     280   Total revenues and other operating income 25,131 83,509 61,562 136,204   OPERATING EXPENSES: Oil and natural gas production taxes 1,320 3,070 3,119 8,840 Oil and natural gas production expenses 9,772 9,727 28,976 28,507 Depreciation and amortization 7,304 10,955 23,808 32,757 Accretion expense 513 552 1,449 1,630 Impairment - - 58,929 - Share-based compensation 539 602 1,632 2,081 General and administrative, overhead and other expenses, net of operator's overhead fees   4,247     4,962     12,337     16,018   Total operating expenses   23,695     29,868     130,250     89,833   Operating income (loss) 1,436 53,641 (68,688 ) 46,371   OTHER INCOME (EXPENSE): Interest expense (5,561 ) (4,817 ) (12,770 ) (19,176 ) Interest income 40 38 69 186 Other income (expense)   10     (6,733 )   (529 )   (7,087 ) EARNINGS (LOSS) BEFORE INCOME TAXES (4,075 ) 42,129 (81,918 ) 20,294 INCOME TAX PROVISION (BENEFIT)   (1,358 )   13,641     (29,302 )   (1,809 ) Net earnings (loss) $ (2,717 ) $ 28,488   $ (52,616 ) $ 22,103     BASIC EARNINGS (LOSS) PER SHARE $ (0.04 ) $ 0.37   $ (0.70 ) $ 0.32   BASIC WEIGHTED AVERAGE SHARES OUTSTANDING   74,505,534     76,972,191     75,487,262     68,482,312     DILUTED EARNINGS (LOSS) PER SHARE $ (0.04 ) $ 0.37   $ (0.70 ) $ 0.32   DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING   74,505,534     77,287,370     75,487,262     68,788,850          

RAM Energy Resources, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

  Nine months ended September 30, 2009   2008 OPERATING ACTIVITIES: Net income (loss) $ (52,616 ) $ 22,103 Adjustments to reconcile net income (loss) to net cash provided by operating activities- Depreciation and amortization 23,808 32,757 Amortization of deferred loan costs and Senior Notes discount 1,120 899 Non-cash interest 829 - Accretion expense 1,449 1,630 Impairment 58,929 - Unrealized loss on derivatives and premium amortization 27,242 4,765 Deferred income tax benefit (29,583 ) (1,880 ) Share-based compensation 1,632 2,081 Loss on disposal of other property, equipment and subsidiary 89 174 Other expense 448 6,917 Changes in operating assets and liabilities Accounts receivable 166 (2,825 ) Prepaid expenses and other assets 1,137 (575 ) Derivative premiums (1,781 ) (1,704 ) Accounts payable and proceeds due others (13,915 ) 6,753 Accrued liabilities and other (15,468 ) (2,180 ) Restricted cash 16,000 - Income taxes payable (176 ) (309 ) Asset retirement obligations   (287 )   (354 ) Total adjustments   71,639     46,149   Net cash provided by operating activities   19,023     68,252   INVESTING ACTIVITIES: Payments for oil and natural gas properties and equipment (21,728 ) (66,739 ) Proceeds from sales of oil and natural gas properties 6,156 886 Payments for other property and equipment (504 ) (1,086 ) Proceeds from sales of other property and equipment 433 19 Proceeds from sale of subsidiary, net of cash - 308 Other   -     149   Net cash used in investing activities   (15,643 )   (66,463 ) FINANCING ACTIVITIES: Payments on long-term debt (24,120 ) (158,234 ) Proceeds from borrowings on long-term debt 23,022 69,253 Payments for deferred loan costs (2,324 ) (60 ) Stock repurchased (6 ) (76 ) Warrants exercised   -     86,614   Net cash used in financing activities   (3,428 )   (2,503 ) DECREASE IN CASH AND CASH EQUIVALENTS (48 ) (714 ) CASH AND CASH EQUIVALENTS, beginning of period   164     6,873   CASH AND CASH EQUIVALENTS, end of period $ 116   $ 6,159   SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for income taxes $ 457   $ 380   Cash paid for interest $ 9,011   $ 20,994   DISCLOSURE OF NON CASH INVESTING AND FINANCING ACTIVITIES: Asset retirement obligations $ 115   $ 1,846   Payment-in-kind interest $ 829   $ -            

RAM Energy Resources, Inc.

Net Production, Unit Prices and Costs

  Three months ended Nine months ended September 30, 2009 September 30, 2009 Production volumes: Oil (MBbls) 278 858 NGLs (MBbls) 104 303 Natural gas (MMcf) 1,488 4,658 Total (Mboe) 630 1,938   Average sale prices received: Oil (per Bbl) $ 65.74 $ 53.31 NGLs (per Bbl) $ 28.84 $ 23.54 Natural gas (per Mcf) $ 3.10 $ 3.34 Total per Boe

$

41.08

$ 35.31   Cash effect of derivative contracts: Oil (per Bbl) ($0.13 ) $ 7.11 NGLs (per Bbl) $ 0.00 $ 0.00 Natural gas (per Mcf) $ 0.35 $ 2.78 Total per Boe $ 0.77 $ 9.82   Average prices computed after cash effect of settlement of derivative contracts: Oil (per Bbl) $ 65.61 $ 60.42 NGLs (per Bbl) $ 28.84 $ 23.54 Natural gas (per Mcf) $ 3.45 $ 6.12 Total per Boe $ 41.85 $ 45.13   Cash expenses (per Boe): Oil and natural gas production taxes $ 2.10 $ 1.61 Oil and natural gas production expenses $ 15.51 $ 14.95 General and administrative $ 6.74 $ 6.37 Interest $ 3.53 $ 4.65 Taxes $ 0.30   $ 0.24 Total per Boe $ 28.18 $ 27.82   Cash flow per Boe $ 13.67   $ 17.31  

RAM Energy Resources, Inc.EBITDA, Free Cash Flow and Adjusted Net Income( non-GAAP measures)(in thousands except share and per share amounts)(unaudited)

Non-GAAP Financial Measures

EBITDA, a non-GAAP measure, is determined by adding the following to net income (loss): interest expense, capitalized PIK interest, amortized deferred loan costs, income taxes, DD&A, accretion, share-based compensation, impairment charges, unrealized gains or losses on derivatives and MTM settlement transactions. Free cash flow is also a non-GAAP measure representing EBITDA after adjustments for the cash portion of interest and income taxes. Adjusted net income is a non-GAAP measure which excludes the income tax affected impact of unrealized derivative gains or losses, unrealized MTM settlement charges and impairment charges on GAAP income. These non-GAAP measures are presented because management believes it is a useful adjunct to cash provided by operating activities under accounting principles generally accepted in the United States (GAAP). These non-GAAP measures are widely accepted as financial indicators of an oil and gas company’s ability to generate cash used to internally fund exploration and development activities and fund debt service costs. These non-GAAP measures are not a measure of financial performance under GAAP and should not be considered as an alternative to cash provided (used) by operating, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity.

              Qtr Ended Qtr Ended 9 Mos Ended 9 Mos Ended 9/30/2009   9/30/2008 9/30/2009   9/30/2008   EBITDA: Net income (loss) $ (2,717 ) $ 28,488 $ (52,616 ) $ 22,103 Plus: Interest expense $ 4,253 $ 4,520 $ 10,821 $ 18,277 Plus: PIK interest $ 786 $ - $ 829 $ - Plus: Amortization of deferred loan costs $ 522 $ 297 $ 1,120 $ 899 Plus: Amortization and depreciation & accretion $ 7,817 $ 11,507 $ 25,257 $ 34,387 Plus: Share-based compensation $ 539 $ 602 $ 1,632 $ 2,081 Plus: Income tax (benefit) $ (1,358 ) $ 13,641 $ (29,302 ) $ (1,809 ) Plus: MTM escrowed Sacket proceeds $ - $ 6,752 $ 448 $ 6,752 Plus: Impairment charges $ - $ - $ 58,929 $ - Less: Unrealized (gain) loss on derivatives $ 1,283     $ (34,302 ) $ 26,085     $ 4,765     EBITDA $ 11,125 $ 31,505 $ 43,203 $ 87,455   Less:   Cash paid for interest $ 2,223 $ 4,659 $ 9,011 $ 20,994 Cash paid for income tax $ 187 $ 103 $ 457 $ 380               Free cash flow $ 8,715     $ 26,743   $ 33,735     $ 66,081     Weighted average shares outstanding - basic 74,506 76,972 75,487 68,482 Weighted average shares outstanding - diluted 74,668 77,287 75,684 68,789   Cash flow per share - basic $ 0.12 $ 0.35 $ 0.45 $ 0.96 Cash flow per share - diluted $ 0.12 $ 0.35 $ 0.45 $ 0.96     Adjusted net income (loss): Net income (loss) $ (2,717 ) $ 28,488 $ (52,616 ) $ 22,103   Plus: Tax effected impairment charge - - 37,535 -   Plus: Tax effected settlement charge - 4,186 278 4,186   Plus: Tax effected unrealized (gain)loss on derivatives   795       (21,267 )   16,173       2,955     Adjusted net income (loss) $ (1,922 )   $ 11,407   $ 1,369     $ 29,244     Weighted average shares outstanding - basic 74,506 76,972 75,487 68,482 Weighted average shares outstanding - diluted 74,506 77,287 75,684 68,789   Adjusted net income (loss) per share - basic $ (0.03 ) $ 0.15 $ 0.02 $ 0.43 Adjusted net income (loss) per share - diluted $ (0.03 ) $ 0.15 $ 0.02 $ 0.43               RAM Energy Resources, Inc. Production by Areas Three Months Ended September 30, 2009   Mature Mature Developing Fields Oil Fields* Natural Gas Fields   Three Months Ended September 30, 2009 South Texas   Barnett Shale   Appalachia Various Various Total Aggregate Net Production Oil (MBbls) 12 2 - 233 31 278 NGLs (MBbls) 31 32 - 20 21 104 Natural Gas (MMcf) 525     195     21   135   612   1,488   MBoe 130     67     4   275   154   630     Three Months Ended September 30, 2008 Aggregate Net Production Oil (MBbls) 17 2 - 245 31 295 NGLs (MBbls) 32 13 - 21 21 87 Natural Gas (MMcf) 691     141     20   238   490   1,580   MBoe 164     39     3   305   134   645     Change in MBoe (34 ) 28 1 (30 ) 20 (15 ) Percentage Change in MBoe -20.7 % 71.8 % 33.3 % -9.8 % 14.9 % -2.3 %     *Includes Electra/Burkburnett, Allen/Fitts and Layton fields.           Three months ended September 30, 2009   2008 Decrease   Average sale prices: Oil (per Bbl) $ 65.74 $ 116.81 -43.7 % NGL (per Bbl) $ 28.84 $ 66.16 -56.4 % Natural gas (per Mcf) $ 3.10 $ 8.85 -65.0 % Per Boe $ 41.08 $ 83.92 -51.0 %     RAM Energy Resources, Inc. Production by Areas

Nine Months Ended September 30, 2009

            Mature Mature Developing Fields Oil Fields* Natural Gas Fields   Nine Months Ended September 30, 2009 South Texas   Barnett Shale   Appalachia Various Various Total Aggregate Net Production Oil (MBbls) 45 6 1 726 80 858 NGLs (MBbls) 87 94 - 62 60 303 Natural Gas (MMcf) 1,547     604     66   530   1,911   4,658   MBoe 390     201     12   876   459   1,938     Nine Months Ended September 30, 2008 Aggregate Net Production Oil (MBbls) 38 4 - 715 136 893 NGLs (MBbls) 84 44 - 60 58 246 Natural Gas (MMcf) 1,999     318     30   591   1,628   4,566   MBoe 456     101     5   874   465   1,901     Change in MBoe (66 ) 100 7 2 (6 ) 37 Percentage Change in MBoe -14.5 % 99.0 % 140.0 % 0.2 % -1.3 % 1.9 %     *Includes Electra/Burkburnett, Allen/Fitts and Layton fields.           Nine months ended September 30, 2009   2008 Decrease   Average sale prices: Oil (per Bbl) $ 53.31 $ 112.08 -52.4 % NGLs (per Bbl) $ 23.54 $ 60.65 -61.2 % Natural gas (per Mcf) $ 3.34 $ 8.81 -62.1 % Per Boe $ 35.31 $ 81.67 -56.8 %