2011-01-14-2010-12-14-2010-12-14

Bought certain N TX assets in Jack & Wise cos., gaining 883 BOE/d, 4.3 MMBOE.

Privately held, Houston-based Milagro Exploration LLC has acquired certain North Texas assets from RWG Energy Inc., a subsidiary of Ram Energy Resources Inc., Tulsa, Okla., (Nasdaq: RAME) for approximately $43 million.

The assets acquired in the transaction include 118 producing wells in Jack and Wise counties. Production is approximately 883 barrels of oil equivalent per day. Proved reserves are approximately 4.3 million barrels equivalent. The deal is effective Oct. 1, 2010.

The deal represents the first asset sale to be completed pursuant to Ram's announced review of strategic alternatives and its decision to target debt reduction through asset sales.

Milagro executive vice president and chief financial officer James Ivey says, "We are excited to add these reserves to our asset portfolio. They represent a significant continuation of our growth strategy of adding liquids rich, long-lived reserves with steady production at attractive prices. This transaction also broadens our geographic footprint and supports our goal of expanding beyond the Gulf Coast."

Milagro has now replaced approximately 150% of its annual production through a combination of acquisitions and its drilling program since its recapitalization earlier this year.

Ram will use proceeds to reduce the outstanding balance on its revolving credit facility, which stood at $133.5 million as of Sept. 30.