This transaction represents the first asset sale to be completed pursuant to the company’s announced review of strategic alternatives earlier in the year and its decision to target debt reduction through asset divestitures.
Proceeds of $16m will be applied to reduce the outstanding balance on the company’s revolving credit facility which stood at $133.5m as of 30 September 2010.
The remaining net proceeds will be applied to reduce the outstanding balance on the company’s term loan which was $113.3m at 30 September 2010, the company said.
Ram Energy is engaged in the acquisition, exploration and development of oil and gas properties and the marketing of crude oil and natural gas.
