RAM Energy has reported total production of 653,000 BOE, produced during the fourth quarter of 2008. Depending on first quarter 2009 production and intended activity during the remainder of the year, the company reaffirms its target production for the 2009 year of 2.55 million BOE, a level equal to total production in the previous year.
Capital spending for the first quarter 2009 totaled about $13.3 million with $12.1 million, or 91%, assigned to developmental activities and the remainder divided between acquisition of proved properties and exploratory costs. Planned capital spending for the year targets the low end of the previously disclosed range of $40 – $45 million with constant focus on lower risk developmental activity.
“RAM’s strategy is to preserve value in the current environment of comparatively low hydrocarbon prices and uncertain near term demand for oil and gas. The company is well positioned to weather the current climate and respond to an improvement in industry economics with an inventory mix of conventional and unconventional projects to support increased activity and production. RAM has a significant inventory of economic projects, most all of whose associated leases are held by production and not substantially at risk of lease expiration,” said Larry Lee, chairman and chief executive officer. “We have identified over 150 PUD locations in our core areas,” added Lee.
