RAM Energy Resources Reports Second Quarter 2006 Results

RAM Energy Resources, Inc. has announced second quarter 2006 earnings and operating results. For the quarter ended June 30, RAM incurred a loss of $3.1 million, or $0.13 per share based upon 23.0 million weighted average shares outstanding. Results of the current quarter were negatively impacted by $3.3 million in non-cash charges related to the merger ($2.2 million for share based compensation and the write-off of unamortized loan fees of $1.1 million) and by non-cash unrealized derivative losses of $2.1 million, all on a pre-tax basis. Exclusive of the non-cash items, RAM would have had pre-tax income of $2.3 million and, assuming the same tax rate, net income of $1.5 million, or $0.06 per share. By comparison, in the second quarter 2005 RAM Energy, Inc., the exploration and production entity acquired by the company in May, 2006, reported a loss of $291,000 or $0.04 per share, which included a pre-tax non-cash charge of $3.2 million for unrealized derivative losses. All comparative information in this release relates to same period 2005 financial and operating results of RAM Energy, Inc.

Cash flow from operations, a non-GAAP measure, was $4.0 million for the second quarter of 2006 compared to cash flow of $3.6 million in the same quarter of 2005. See the attached table for reconciliation of these non-GAAP financial measures to the corresponding GAAP amounts of cash provided by operating activities of $8.3 million for the second quarter of 2006 and $6.7 million for the same quarter in 2005.

RAM Energy Resources, Inc. is an independent energy company engaged in the acquisition, exploitation, exploration, and development of oil and gas properties and the marketing of crude oil and natural gas. The company headquarters are located in Tulsa.

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