Ram Energy Reports Production Up

Ram Energy Resources reports higher first quarter production volumes compared to both the first quarter last year as well as production for the fourth quarter 2008.
Production for the quarter ended March 31, increased 7 percent above the year ago quarter to a total of 655,000 BOE, principally as a result of increased volumes from Ram’s developing fields and its mature oil fields.
Similarly, first quarter 2009 daily production of 7,278 BOE rose 2.5 percent above the daily volume of 7,098 BOE, or a total of 653,000 BOE, produced during the quarter ended Dec. 31. Based on first quarter production and planned activity during the remainder of the year, the company reaffirms its target production for the 2009 year of 2.55 million BOE, a level equal to total production in 2008.
Capital expenditures for the first quarter 2009 totaled $13.3 million with $12.1 million, or 91 percent, allocated to developmental activities and the remainder split between acquisition of proved properties and exploratory costs. Planned capital spending for the year targets the low end of the previously disclosed range of $40 — $45 million with continued focus on lower risk developmental activity.
Ram’s strategy is to preserve value in the current environment of comparatively low hydrocarbon prices and uncertain near term demand for oil and gas, said arry Lee, chairman and CEO.
“The company is well positioned to weather the current climate and respond to an improvement in industry economics with an inventory mix of conventional and unconventional projects to support increased activity and production,” Lee said. “Ram has a significant inventory of economic projects, most all of whose associated leases are held by production and not substantially at risk of lease expiration. “We have identified over 150 PUD locations in our core areas.”

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