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Article Excerpt
* Conference Call to be Held at 4:00 p.m. CDT, October 16, 2007
TULSA, Okla. -- RAM Energy Resources, Inc. (Nasdaq: RAME) today announced the execution of a definitive agreement to acquire Ascent Energy Inc., a privately-held company. Total consideration will be a combination of cash, RAM common stock and RAM warrants.
Acquisition Highlights
* Adds 18.6 million barrels of oil equivalent (BOE) of proved reserves.
* Adds daily production of approximately 3,162 BOE.
* Adds upside potential from approximately 83,000 net acres of undeveloped leasehold, a majority of which are in active shale plays.
* Consideration is a mix of $185.0 million in cash, a minimum of 20.0 million to a maximum of 20.5 million shares of RAM common stock, dependent on the price of RAM common within a defined trading window and 6.2 million RAM warrants, subject to adjustments to the cash and stock portions.
* Estimated acquisition price of $289.5 million, which equates to approximately $15.58 per BOE of proved reserves.
Strategic Rationale
"The acquisition of Ascent is consistent with RAM's historic strategy of targeting growth through a combination of acquisitions, exploitation and exploration," said Larry Lee, Chairman and CEO of RAM Energy Resources, Inc. "Specifically, the assets of Ascent will add materially to combined production and cash flow, provide additional diversification to potential sources of near-to-intermediate term growth and expand our portfolio of exploratory prospects for future growth. Further, Ascent's property mix provides an attractive combination of operations in regions where RAM has experience, either as a result of its current operations or prior operating history, as well as establishes potentially new core areas, all in the continental United States," added Mr. Lee.
Properties, Proved Reserves and PV-10 Values
Ascent's properties are...
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