RAM Energy Resources, Inc. (NASDAQ: RAM) today announced an update of operational activity on its Osage Mississippian oil play. Update to Drilling Activity Drilling of the four vertical wells planned for the third quarter was delayed until late in the quarter due to rig availability. The Cooper #3-35 was spudded on September 24 and drilled to a total depth of 2,380 feet. The Kendrick #1-27 was spudded on September 30 and drilled to a depth of 2,411 feet. Both wells drilled through the Mississippi Chat and Lime formations and are currently awaiting completion operations. The Ricketts #2-25 spudded on October 7, 2011 and is currently drilling. The fourth well, the Jones #1-33, has been temporarily delayed pending resolution of an access road to the drill site. Further, the permitting process is underway for the company’s second salt water disposal well in the play, the Ricketts #3-35 SWD. The Ricketts #3-35 SWD is anticipated to add significant disposal capacity for the salt water which is produced in association with the oil and gas from the Mississippian formation. Southern Surber Area The Surber #1-26 continues to produce at rates considerably above the type curve of vertical wells surveyed. After fracture stimulation was applied to the Chat formation, the well produced at a daily rate of 108 barrels of oil equivalent (BOE) in June. As of September 30, 2011 daily production from the well was 61 BOE. As a result of the production response observed to date after fracturing the Surber #1-26 well, the company is planning to fracture stimulate the Ricketts #2-35 in the Mississippi Chat formation when a frac date becomes available, which is anticipated to occur sometime during the fourth quarter. Testing is currently underway on multiple vertical wells previously drilled, including the Ricketts #2-35, Ricketts #3-26, Surber #1-35 and the Surber #2T. The company is continuing to evaluate the feasibility of fracture stimulating these wells. In the meantime, the wells are producing a total of approximately 30 BOEPD.
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%).