RAM Energy Resources, Inc. reported that the company has signed an agreement to sell oil and gas properties to a private exploration and production company.
RAM Energy Resources, Inc. will sell the company’s properties located in Texas, including those in the Barnett Shale and Boonsville, for $43.75 million in cash. The sale is expected to close in December 2010, with an effective date of October 1, 2010.
RAM Energy Resources, Inc. said that the properties are located mostly in Jack and Wise Counties, and contained proved reserves of 26.4 billion cubic feet equivalent as of 12/31/2009. This was 13% of the company’s total proved reserves of 204 billion cubic feet equivalent.
RAM Energy Resources, Inc. said that the properties sold had average daily production of 5.635 million cubic feet equivalents, comprise of composed of 2.549 million cubic feet of natural gas, 465 barrels of various natural gas liquids and 50 barrels of oil.
The transaction is part of the strategic review process that RAM Energy Resources, Inc. announced in June 2010. The proceeds will be used to reduce debt on the company’s line of credit and term loan facility.
Jefferies & Company, Inc. is advising RAM Energy Resources, Inc. during the strategic review process, and the company expects further targeted assets sales in the future.
For more information on the company, go to www.ramenergy.com
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