Ram Energy Resources has acquired Ascent Energy for a total consideration of approximately $286 million, composed of $190 million in cash, 18.8 million shares of Ram common stock and 6.2 million Ram warrants.
Ram’s acquisition of Ascent adds 18.6 million barrels of oil equivalent (boe), nearly doubling Ram’s proved reserves, and approximately 3,000 boe per day of current production. In addition, the acquisition adds 83,000 net acres of undeveloped leasehold, a majority of which are in active shale plays.
After allocating $25 million of the acquisition price to undeveloped leasehold acreage, the purchase price of proved reserves equals approximately $15.38 per boe, or $2.56 per thousand cubic feet equivalent of natural gas. Ram will continue to occupy the Plano, Texas office of Ascent following the merger.
Larry Lee, chairman and CEO of Ram Energy, said: We are pleased to have closed the acquisition of Ascent on a timely basis and are moving rapidly to ramp up operational activity on the opportunities identified on Ascent’s undeveloped properties during the transaction process.