Ram Energy Resources Inc.

Transaction Type
Sellers
Marketers
Field
Electra/Burkburnett, N.E. Fitts
Post Date
Estimated Price
0MM
Description

Ram Energy Resources Inc., Tulsa, Okla., (Nasdaq: RAME) reports it has engaged Jefferies & Co. Inc. as financial advisor to assist management in reviewing strategic alternatives to enhance shareholder value. Alternatives include a sale, refinancing or recapitalization of the company. Ram will neither alter its business plans, nor amend its capital budget.

In April, Ram announced plans to increase drilling activity drawn from the company's inventory of more than 300 identified proved projects in mature, lower risk areas of Electra/Burkburnett and N.E. Fitts in Oklahoma, where the principal production is oil. Additionally, the company reported it would drill nine wells on its South Texas Eagle Ford acreage in 2010. Ram had net proved reserves of approximately 34 million barrels of oil equivalent at year-end 2009.

According to the equity-research team of Global Hunter Securities LLC, Jefferies owns 24.7% of the company's outstanding shares. GHS also notes that Ram has a current market capitalization of $138.29 million, with approximately 78.13 million shares outstanding. The company also has $247 million of long-term debt.

Ram has oil and gas properties primarily in Texas, Louisiana, Oklahoma, New Mexico and West Virginia.