RAM Energy Resources Announces Fourth Quarter 2006 Operational

Tulsa-based RAM Energy Resources Inc. reported that non-acquisition capital expenditures rose 56 percent for they year.
During the fourth quarter those costs were about $6.4 million. For 2006 total expenditures totaled $23.4 million.
RAM continues to drill six wells per month in its Electra/Burkburnett field, which has a remaining inventory of 134 proved undeveloped locations to drill over the next several years, the company reported.
In other updates highlights to operating activity during the fourth quarter:
? RAM announced its 2007 non-acquisition capital budget of $30.3 million, a 29 percent increase over the estimated 2006 non-acquisition capital spent of $23.4 million.
? During the fourth quarter, the company drilled and set casing on two wells in its Wolfcamp Shale exploration play. The wells have been logged, evaluated and are awaiting completion work anticipated to occur in the first quarter 2007;
? RAM has proposed its first well targeting the Barnett Shale to EOG Resources, the operator of the jointly held acreage.
The ability to propose the well resulted from the company’s evaluation of acquired 3-D seismic data which has generated 19 drilling locations in addition to RAM’s existing four proved undeveloped drilling locations.
“We are pleased with the operational and financial progress achieved by our company during 2006,” said Larry E. Lee, chairman and CEO. “We feel the company is well positioned to execute on our 2007 business plan to grow through a combined strategy of acquisitions, exploitation and exploration.”
Of the total estimated $6.4 million oil and gas related non-acquisition capital expenditures in the fourth quarter of 2006, $3.5 million was allocated to development and exploitation activity while $2.9 million was spent on exploratory activity.
RAM’s total capital expenditures for 2006 aggregated to an estimated $28.0 million inclusive of the 447,000 BOE of reserves acquired in the third quarter of this year for a price of $4.6 million.
During the fourth quarter, RAM drilled or participated in the drilling of 18 development wells of which 13 wells are capable of commercial production, and five net wells which were drilling, testing or completing at year end.
During the quarter RAM also participated in three gross (2.1 net) exploratory wells, which are currently at various stages of completion.
In the Electra/Burkburnett area of North Texas, responsible for approximately 55 percent of third quarter total net production, the company continues a high level of development drilling and recompletion activity.
A seismic acquisition program there continues to help identify potential future drilling locations. ?



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