RAM Energy Resources, Inc. has closed the sale to a privately-held E&P company of certain non-operated natural gas properties located in eastern Oklahoma for $8.0 million in cash. The transaction closed on December 30, 2010. The sale proceeds were immediately applied to reduce outstanding borrowings under RAM's revolving credit facility to $116.5 million at December 31, 2010. The disposition of these non-core properties reflects the successful continuation of the company's implementation of its previously announced plan to target debt reduction through selective asset divestitures.

Pay Down on Senior Secured Credit Facility Also on December 30, 2010, the company made an $8.0 million voluntary prepayment on the term loan portion of its credit facility, reducing the outstanding balance under the facility to $80.2 million. As a result of the application of sale proceeds and the voluntary prepayment on the term loan, the total amount outstanding under RAM's senior secured credit facility has been reduced to $196.7 million at December 31, 2010, marking the first time since the company's 2007 acquisition of Ascent Energy that senior secured borrowings have dropped below the $200.0 million level.

Production and Pricing Parameters of Assets Sold Third quarter production from the properties which were sold totaled 90,972 MCFE, or 989 MCFE per day, and represented 2.8 percent of RAM's aggregate third quarter 2010 production. In addition the sale price represents 4.8 times the third quarter of 2010 annualized operating cash flow from the properties.

Tags: RAM Energy Resources