RAME Ram Energy Resources, Inc. (MM)

RAM Energy Resources, Inc. (Nasdaq: RAME) announced that it will be filing an amendment to the company’s annual report on Form 10-K for the year ended December 31, 2008 and simultaneously will be filing amendments to its quarterly reports on Form 10-Q for the periods ended March 31, June 30 and September 30, 2009, primarily to restate impairment expense, depreciation and amortization expense, and related provision for income tax benefit, all as reflected in the financial statements for those periods as originally issued. The correction of these errors results in reducing the net loss reported by the company for 2008 by $8.1 million, with a corresponding positive change to stockholders’ equity, and reducing the net loss reported for the first nine months of 2009 by $6.9 million, also with a corresponding positive change to stockholders’ equity. All of the changes effected by the restatement are to non-cash items.

The estimate of RAM’s proved oil and natural gas reserves for the period ended December 31, 2008 prepared by the company’s independent petroleum engineers and utilized in connection with the preparation of the year-end financial statements, and the company’s internal reserve report prepared in connection with the preparation of the March 31, 2009 unaudited financial statements, inadvertently included certain properties that were uneconomic at period-end commodity prices and development costs, thereby overstating reserve quantities and associated future development costs and resulting in the financial statement errors corrected by the restatement. Due to the errors in the reserve reports, future net revenues from the company’s proved oil and natural gas properties discounted at 10%, or PV-10 Value, was understated by $10.7 million at December 31, 2008 and was also understated at March 31, 2009.

The errors in the company’s reserve reports were limited to the reserve reports prepared for year-end 2008 and first quarter 2009 periods. The error of inclusion of uneconomic properties did not carry forward into reserve reports prepared for the period ended June 30, 2009. Procedures utilized by the company in finalizing and incorporating reserve data into the financial statements have been modified to prevent the reoccurrence of the error in future periods. While management believed that the effect of these non-cash errors was not material to the company’s financial statements as issued and this position was concurred with by RAM’s independent auditors, after an extended period of review and discussion with the SEC staff, management and the audit committee of the company’s board of directors determined that it was in the best interests of the company and its stockholders to restate the financial statements and issue an amended annual report and amended quarterly reports reflecting the corrections.

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 intended SEC filings with the SEC, estimates of changes and corrected amounts in restated financial statements 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, actions taken and to be taken by the government as a result of statutory interpretation, 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.

About RAM Energy Resources

RAM Energy Resources, Inc. is an independent energy company engaged in the acquisition, 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 under the symbol RAME. For additional information, visit the company website at www.ramenergy.com.

Ram Energy Resources, Inc. (MM) (NASDAQ:RAME)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Ram Energy Resources, Inc. (MM) (NASDAQ:RAME)
Historical Stock Chart
Von Jul 2023 bis Jul 2024