RAM Energy Resources announced today that the estimate of the company’s proved reserves at June 30, 2007 totaled 19.3 million barrels of oil equivalent, reflecting replacement of 226 percent of the 650 thousand BOE of reserves produced by RAM during the first six months of 2007. In addition, estimated proved reserves at mid-year 2007 are approximately 816 thousand BOE, or four percent, above the estimated volume of proved reserves at year-end 2006 of 18.5 million BOE.
The increase in proved reserves is the product of higher hydrocarbon prices being received at June 30, 2007 and the addition of reserve volumes added from drilling as a result of the company’s capital expenditures, which totaled $28.5 million during the first half. Approximately one-quarter of the increase in volume of proved reserves during the first half of 2007 is attributable to the completion of two wells and the accompanying four offset PUD locations established in the company’s Barnett Shale acreage, located in the Fort Worth Basin in Texas. Currently the company has one well drilling on its jointly held Barnett Shale leases and estimates it has an inventory of nine PUD locations, 15 probable and seven possible seismically identified locations, bringing the current total inventory available to support potential future growth to a substantial 32 locations.
Mid-year 2007 estimated proved reserves were comprised of 11.2 million barrels of oil, 2.1 million barrels of natural gas liquids and 36 Bcf of natural gas. Proved developed reserves account for 73 percent of the company’s total proved reserves while proved undeveloped reserves represent the remaining 27 percent. These reserve estimates do not include any probable reserves attributable to the company’s 6,800 net leasehold acres of Barnett Shale rights located in the Fort Worth Basin, which is now the company’s third largest producing area.