RAME Ram Energy Resources, Inc. (MM)

RAM Energy Resources, Inc. (Nasdaq: RAME) today announced improvements to certain financial benchmarks and liquidity at the end of the third quarter and the company�s outlook for the fourth quarter. Through the nine months ended September 30, 2008, all of RAM�s non-acquisition capital expenditures have been funded from internally generated cash flow. Based on RAM�s preliminary estimates of capital expenditures made during the third quarter 2008, a total of approximately $31 million was spent, composed of $22 million allocated to exploitation and development activities and approximately $9 million for acquisitions. As of September 30, long-term debt totaled approximately $246 million, while cash and cash equivalents on the balance sheet aggregated to an estimated $7 million, for a net debt position of approximately $239 million, largely unchanged from the net debt level of $237 million recorded at June 30, 2008. At the end of the third quarter, RAM had $246 million borrowed under its borrowing base of $288 million, leaving approximately $42 million of immediately available funds under the existing credit facility. The current credit facility is composed of a term loan of $113 million which matures in 4.2 years and a revolving credit agreement of $175 million, with current borrowings outstanding of $133 million, which matures in 3.2 years. Management expects that the strength of the company�s balance sheet as evidenced by its current liquidity and the existing term of credit agreements provides flexibility and stability during the current financial market uncertainties. RAM�s non-acquisition capital budget for 2008 was announced in December 2007 at $80 million. Through the nine months, approximately $62 million was spent for exploration, exploitation and development activities with another $10 million for acquisitions of production, reserves and pipeline assets. After a review of RAM properties along with those acquired from Ascent late in 2007, RAM is actively in the process of divesting non-core properties which, to date, have generated proceeds of approximately $1 million. Based on RAM�s assumed price outlook for oil, natural gas liquids and natural gas and its previously issued second half production guidance, which RAM recently confirmed, the company expects to be able to fund the majority if not all of its estimated fourth quarter non-acquisition capital budget of approximately $18 million through internally generated cash flow, excluding anticipated proceeds from divestitures. �Our non-acquisition capital budget for the 2008 year was set with the anticipation that it would be funded largely, if not entirely, from internally generated cash flow and we have succeeded in executing our business plan while reducing our debt to total capital ratio thus maintaining a strong financial position,� said Larry Lee, Chairman and CEO. Forward-Looking Statements This release includes certain statements that may be deemed to be �forward-looking statements� within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts that address estimates of cash flows, drilling activities, production, capital spending, future drilling plans, and events or other developments that the company expects or believes are forward-looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include oil and gas prices, exploitation and exploration successes, actions taken and to be taken by the government as a result of political and economic conditions, continued availability of capital and financing, and general economic, market or business conditions as well as other risk factors described from time to time in the company�s filings with the SEC. The company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. RAM Energy Resources, Inc. is an independent energy company engaged in the acquisition, exploitation, exploration, and development of oil and gas properties and the marketing of crude oil and natural gas. Company headquarters are in Tulsa, Oklahoma, and its common shares are traded on the Nasdaq under the symbol RAME. For additional information, visit the company website at www.ramenergy.com.