RAM Energy Resources says that estimates of the company's proved oil and natural gas reserves at December 31, 2009 calculated using new SEC rules (SEC Case) totaled 33.9 million barrels of oil equivalent (BOE) with a PV-10 value of $336.1 million. The company added 4.0 million BOE of reserves during the year, replacing 156% of 2009 production of 2.5 million BOE despite limited capital spending and sales of certain non-strategic reserves during the third quarter. RAM continues to employ, as it has in the past, an independent petroleum engineering firm to prepare estimates of its proved reserves in all of its operating areas.

In addition to the SEC Case, RAM also computed an estimate of proved reserves at December 31, 2009 using NYMEX futures strip pricing for the ensuing 36 months, the same pricing used by the company's lenders to support the company's borrowing base. RAM's existing borrowing base is $286 million under the current facility and has not changed appreciably in the last year. Proved reserve volumes using strip pricing at December 31, 2009 were 38.9 million BOE with a PV-10 value of $682.0 million, a substantial increase of 17% compared to $582.1 million of PV-10 value based on strip pricing at year-end 2008.

"Given the deteriorating economic environment which prevailed in early 2009, we set a goal of maintaining our production at 2008's record level, reducing costs and maintaining our financial flexibility. I am pleased that our production goal was met and that we preserved the value of our assets principally through drilling low-risk PUD prospects with total capital spending of less than $30 million. As economic improvement became more visible during the second half of the year we decided to step up our drilling activity in South Texas, an area of previous successes and plentiful projects in an effort to return to solid production growth in 2010," said Larry Lee, President and CEO.

Reserve Composition Year-end 2009 estimated proved reserves of 33.9 million BOE are composed of 14.1 million barrels of oil, 5.0 million barrels of natural gas liquids and 89.2 Bcf of natural gas. Crude oil and natural gas liquids represent 56% of total proved reserves, and natural gas reserves represent the remaining 44% of reserves. Proved developed reserves accounted for nearly 57% of total proved reserves and accounted for 66% of the total PV-10 value of $336.1 million, providing an underpinning to the confidence in the cash flow stream in 2010 and beyond.

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