The properties covered by the purchase and sale agreement consist of Ram’s interest in its shallow gas, Bend Conglomerate properties and its deeper Barnett Shale properties, all located in the Ft Worth Basin, principally in Jack and Wise Counties, Texas.
Together, proved reserves from these properties accounted for approximately 26.4 billion cubic feet equivalents (bcfe) of natural gas, natural gas liquids and oil, or an estimated 13%, of Ram’s year-end 2009 proved reserves of 204bcfe.
The effective date of the divestiture is 1 October 2010 with the closing anticipated in early December 2010.
The current transaction represents the first asset sale to be effected pursuant to Ram’s announced review of strategic alternatives.
The company has earlier stated that proceeds from the asset divestitures will be used to reduce outstanding debt balances.
