RAM Energy Resources Reports an Amendment to Senior Credit Facility

RAM Energy Resources, Inc. (Nasdaq: RAME) reported today that the company has renegotiated certain terms of the company�s senior secured credit facility with its commercial lenders. Effective June 26, 2009, RAM and the lenders amended the existing loan agreement to provide for greater flexibility in certain financial covenants, thereby facilitating execution of the company�s planned $40 to $45 million capital expenditures program in 2009. The amendment was crafted to ensure compliance by the company with the various financial covenants under the loan agreement through the remaining term of the facility, based on company projections and current commodity futures prices. In addition, the amendment permits additional asset sales by the company up to an aggregate $10 million per year.

Under the terms of the amendment the maximum allowable leverage ratio (total debt to trailing twelve months EBITDA) is increased to 4.75 times to 1 (from the previous 4.00 times to 1) and the minimum allowable asset coverage ratio (reserve value to total debt) is decreased to 1.50 times to 1 (from the previous 1.75 times to 1). In addition, the amendment eliminates from the calculation of EBITDA all charges relating to the settlement of the previously disclosed Sacket class action lawsuit, and excludes payment in kind (PIK) interest and the amortization of fees associated with the amendment process from the calculation of interest expense for purposes of the interest ratio covenant.

In exchange for the added flexibility afforded by these changes to the credit facility, RAM agreed to increase the base cash interest rate on both the revolving facility and term facility by 100 basis points, establish a LIBOR floor of 150 basis points (resulting in approximately an additional 100 basis point increase on monthly LIBOR-based borrowings) and pay an additional 2.75% in PIK interest on the term portion of the facility. Accrued PIK interest will be added to the principal balance of the term loan on a monthly basis and paid at maturity.

The company estimates that as a result of the amendment, cash interest expense under the senior secured credit facility (excluding transaction fees) will increase by approximately $2.1 million for the six month period ending December 31, 2009, and by approximately $2.7 million for calendar year 2010, in comparison with projected cash interest expense under the terms of the existing agreement and the current forward LIBOR curve. In addition, capitalized PIK interest is estimated to be approximately $1.6 million for the six month period ending December 31, 2009, and approximately $3.2 million for calendar year 2010. As a result of the amendment, RAM projects that the blended rate of cash interest payable under the facility will increase to 6.8% per annum for the second half of 2009, compared to a projected blended rate of 5.1% under the terms of the loan agreement prior to the amendment. Including the capitalized PIK interest, the total blended rate for the second half of 2009 is projected to be approximately 8.1%. Notwithstanding the increased rates provided under the amendment, RAM reaffirms its annual interest expense guidance for the 2009 year of $17 to $18 million.

At June 30, 2009 the company had outstanding borrowings under its credit facility of $255.4 million, composed of $113.4 million of term debt and $142.0 million outstanding under its revolver, which currently is subject to a $175 million borrowing base. Based on the company�s outstanding debt balance at June 30, 2009, RAM expects the cash interest percentage spread to our LIBOR floor to be 2.75% on its revolving facility and 8.50% on its term loan facility. The next scheduled redetermination of the borrowing base will occur on October 1. Additionally the maturity schedule of the debt remains unchanged; the revolving credit facility matures in November 2011 and the term facility in November 2012.

�The negotiated amendment to our credit facility provides RAM the flexibility to continue our focus on maintaining the firm�s value in these uncertain times, while positioning for future growth,� said Larry Lee, President and CEO. �Further, we continue to benefit from the long life nature of our assets and selective capital spending budget of $40 to $45 million, the results of which allow us to reaffirm our annual production guidance of 2.5 million barrels of oil equivalent in 2009,� added Mr. Lee.

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 implicit estimates of borrowing availability, financial covenants, future production, capital spending, cash flow, EBITDA, realized prices of oil and gas, interest expense and events or developments that the company expects or believes are forward-looking statements. Although RAM 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, developmental, exploitation and exploration successes, actions taken and to be taken by governments as a result of political and economic conditions or other factors, inflation rates, 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 is an independent energy company engaged in the acquisition, development, exploitation and exploration of oil and gas properties and the marketing of natural gas and crude oil. Company headquarters are in Tulsa, Oklahoma, and its common shares are traded on the Nasdaq Exchange under the symbol RAME. For additional information, visit the company website at www.ramenergy.com.

Ram Energy Resources, Inc. (MM) (NASDAQ:RAME)
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