TULSA, Okla., Sept. 28, 2009 (GLOBE NEWSWIRE) -- RAM Energy Resources, Inc. (Nasdaq:RAME) reported today that the company's existing borrowing base of $175.0 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.
$175 Million Borrowing Base Reaffirmed
The company's $250.0 million revolving credit facility had a borrowing base of $175.0 million in April 2009. As a result of the semi-annual borrowing base redetermination, RAM's commercial lenders reaffirmed the borrowing base of $175.0 million based on the value of the company's proved reserves at June 30, 2009. Funds advanced under the revolver may be paid down and re-borrowed during the term of the revolver which matures November 2011. At June 30, 2009 the outstanding balance under the revolving facility was $142.0 million, with remaining availability of $32.8 million, net of $0.2 million for outstanding letters of credit. The balance of the term loan portion of the credit facility was $113.4 million at June 30, 2009 with a maturity of November 2012. The weighted average LIBOR-based interest rate on total outstanding borrowings under both the revolver and term loan is estimated to be approximately 8.0 percent during the third quarter 2009.
"The reaffirmation of our borrowing base and the availability remaining under our revolving credit facility provide an important degree of liquidity and flexibility," said Larry Lee, President and CEO. "Having approximately 60 percent of our proved reserves categorized as proved developed producing coupled with the cash flow yield from our production mix, 59 percent of which is driven by the price of oil, continues to be seen as a strong plus by our lenders," added Mr. Lee.
Forward-Looking Statements
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address explicit or implicit estimates of borrowing availability, financial lending covenants, future production, capital spending, cash flow, realized prices of oil and gas, interest expense and events or developments that the company expects or believes are forward-looking statements. Although RAM believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include oil and gas prices, developmental, exploitation and exploration successes, actions taken and to be taken by governments as a result of political and economic conditions or other factors, inflation rates, continued availability of capital and financing, and general economic, market or business conditions as well as other risk factors described from time to time in the company's filings with the SEC. The company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.
About RAM Energy
RAM is an independent energy company engaged in the acquisition, development, exploitation and exploration of oil and gas properties and the marketing of natural gas and crude oil. Company headquarters are in Tulsa, Oklahoma, and its common shares are traded on the Nasdaq Exchange under the symbol RAME. For additional information, visit the company website at www.ramenergy.com.