RAM Energy Reports Increase in Mid-Year 2007 Proved Reserves

RAM Energy Resources says that the estimate of the company's proved reserves at June 30, 2007 totaled 19.3 million barrels of oil equivalent (BOE), reflecting replacement of 226 percent of the 650 thousand BOE of reserves produced by RAM during the first six months of 2007. In addition, estimated proved reserves at mid-year 2007 are approximately 816 thousand BOE, or four percent, above the estimated volume of proved reserves at year-end 2006 of 18.5 million BOE.

The increase in proved reserves is the product of higher hydrocarbon prices being received at June 30, 2007 and the addition of reserve volumes added from drilling as a result of the company's capital expenditures, which totaled $28.5 million during the first half. Approximately one-quarter of the increase in volume of proved reserves during the first half of 2007 is attributable to the completion of two wells and the accompanying four offset PUD locations established in the company's Barnett Shale acreage, located in the Fort Worth Basin in Texas. Currently the company has one well drilling on its jointly held Barnett Shale leases and estimates it has an inventory of nine PUD locations, 15 probable and seven possible seismically identified locations, bringing the current total inventory available to support potential future growth to a substantial 32 locations.

Mid-year 2007 estimated proved reserves were comprised of 11.2 million barrels of oil, 2.1 million barrels of natural gas liquids and 36 Bcf of natural gas. Proved developed reserves account for 73 percent of the company's total proved reserves while proved undeveloped reserves represent the remaining 27 percent. These reserve estimates do not include any probable reserves attributable to the company's 6,800 net leasehold acres of Barnett Shale rights located in the Fort Worth Basin, which is now the company's third largest producing area.

Based on June 30 prices of $70.69 per barrel for oil (WTI Spot), $45.55 per barrel for natural gas liquids, $6.40 per MMBtu (Henry Hub spot price) for gas and the location differentials applicable to the company's properties, the estimated future net revenues, before income taxes, attributable to RAM's estimated total proved reserves were approximately $638 million, with a present value, discounted at 10 percent (PV-10), of approximately $344 million. Mid-year 2007 results represent a significant increase in the PV-10 value attributable to total proved reserves at year-end 2006 of $270 million, which was based on prices being received at that time of $58.74 per barrel for oil, $36.51 per barrel for natural gas liquids and $5.51 per MMBtu for natural gas.

"Currently we have approximately $60 million of cash and other immediately available liquidity under our recently increased credit facility which totals $150 million. Our current cash on hand, cash flow from operations and financial borrowing power under our recently amended credit facility provide ample capital to fund our near-term capital needs to carry out our existing work program," said Larry Lee, Chairman and CEO.


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