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.
Central Mashunkashey AreaThe Christenson #3-2, which initially tested at 750 MCFPD (125 BOEPD) of natural gas from the Arbuckle formation and subsequently tested natural gas in the Mississippi Dense (Lime) formation, is awaiting regulatory authority to commingle both zones for additional testing. Additional Activity RAM is tentatively planning to drill its first horizontal Mississippi well in early 2012. The processing and interpretation of the company’s Phase II seismic survey, which covers 31 square miles of the concession to the south and east of the 25 square-mile Phase I survey, is complete. The identification of potential new drilling locations over the Phase II survey is beginning, setting the stage for future drilling. 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 planned drilling, or other expected activities, well tests, anticipated production and events or 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.
About RAM EnergyRAM Energy Resources, Inc. is an independent energy company engaged in the acquisition, exploitation, exploration, and development of oil and natural 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 RAM. For additional information, visit the company website at www.ramenergy.com.