Ram Energy Reports Borrowing Base Reaffirmed

Ram Energy Resources Inc. reports that the company’s existing borrowing base of $175 million on its revolving credit facility was reaffirmed by the company’s commercial lenders as a result of Ram’s regularly scheduled semi-annual borrowing base redetermination.
The company’s $250 million revolving credit facility had a borrowing base of $175 million at Dec. 31, 2008. As a result of the semi-annual borrowing base redetermination, Ram’s commercial lenders on April 1, reaffirmed the borrowing base of $175 million based on the value of the company’s proved reserves at year-end 2008.
Funds advanced under the revolver may be paid down and re-borrowed during the term of the revolver which matures November 2011. At March 31, the outstanding balance under the revolving facility was $147 million, with remaining availability of $28 million, less $300,000 for outstanding letters of credit.
The balance of the term loan portion of the credit facility is $113.4 million at March 31, 2009 with a maturity of November 2012. The weighted average LIBOR-based interest rate on total outstanding borrowings of both the revolver and term loan are anticipated to be less than 6.0 percent in the first quarter 2009.

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