RAM Energy Resources, Inc. reported that the company has closed on the sale of producing oil and gas assets in the United States. The transaction is part of the company’s strategic repositioning announced earlier in the year.
RAM Energy Resources, Inc. sold the company’s properties in the Barnett Shale and Boonsville area to Milagro Producing, LLC, a private oil and gas company. The company paid $43.7 million in cash subject to closing adjustments. The deal closed on December 8, 2010.
RAM Energy Resources, Inc. said that the company would use $16 million of the proceeds from the sale to pay down its credit line balance. The outstanding amount on the credit line as of 9/30/2010 was $133.5 million.
The balance of the proceeds would be applied to reducing the outstanding principal on the company’s term loan. The balance owed on the term loan was $113.3 million as of 9/30/2010.
RAM Energy Resources, Inc. said that the application of the proceeds to pay down debt improved the company’s liquidity and covenant ratios. The sale also increased the company’s remaining crude oil and natural gas liquids production percentage to 64%.
For more information on the company www.ramenergy.com