RAM Energy Resources Announces Operational Update To Planned Activity At Osage Mississippian Oil Play And Other Operational Activity
RAM Energy Resources, Inc. (Nasdaq: RAM) today announced an update to
activity in its Mississippian oil play in Osage County, Oklahoma which
encompasses the company’s 56,320 acre concession, a part of the broad
RAM Energy Resources, Inc. (Nasdaq: RAM) today announced an update to activity in its Mississippian oil play in Osage County, Oklahoma which encompasses the company’s 56,320 acre concession, a part of the broad Mississippi Chat/Mississippi Solid/Arbuckle oil play in the region. Interpretation of the first phase of 3-D seismic (Phase I), acquired in 2010, and initial drilling results indicate that a substantial portion of the acreage surveyed could be prospective. Although the Mississippi Chat has been the company’s primary objective to date, the company’s practice is to drill through the Chat and through the Mississippi Lime formation in order to gather additional science for future development. The initial wells drilled have encountered Chat zones 40 – 70 feet thick and porosities ranging from 20% – 35%. Similarly, initial wells have drilled through Mississippi Lime zones of 100 feet or more in thickness with a porosity range similar to the 5% – 15% range of porosities experienced by other operators in the western portions of the play. Progress on the initial Phase I 3-D seismic shoot covering 16,000 acres can be broken down into the following areas: (1) Southern Surber Area: RAM has drilled the following eight wells in the southern area of Phase I seismic shoot: Surber 1-26, Ricketts 3-26, Surber SWD, Farmland 1-26, Surber 2-T, Surber 2-27, Surber 1-35, Ricketts 2-35. The Surber 1-26, the initial discovery well in this area, was drilled to a total depth of 2,530 feet and completed in the Mississippi Chat. After acidizing, this well had initial production of 80 barrels of oil per day (BOPD) and declined to 20 – 25 BOPD prior to fracture stimulation. The Surber 1-26 was slick water fractured in late March 2011 and, after stimulation, was producing 100 – 107 barrels of oil equivalent per day (BOEPD) comprised of 87 BOPD and 119 thousand cubic feet of gas per day (MCFPD). Since June 1 it has been producing 65 – 75 BOEPD, comprised of 35 – 45 BOPD and 200 MCFPD, while we continue to de-water the formation.
RAM Energy Resources (Nasdaq:RAM) hit a new 52-week high Tuesday as it is currently trading at $3.59, above its previous 52-week high of $3.45 with 459,888 shares traded as of 9:40 a.m. ET. Average volume has been 1.3 million shares over the past 30 days.
RAM Energy Resources (Nasdaq:RAM) is trading at unusually high volume Tuesday with 4.9 million shares changing hands. It is currently at 5.5 times its average daily volume and trading down 8 cents (-2.6%).