RAM Energy Resources, Inc. issued an update to shareholders and the investment community on its oil and gas operations during the previous year. The company also discussed its drilling plans for 2011, including the 2011 capital budget.
RAM Energy Resources drilled three wells on its acreage in Osage County, Oklahoma, where it has approximately 56,000 net acres under lease. The company is targeting several different formations, including the Lime, Arbuckle and Mississippi Chat.
RAM Energy Resources reported that during the first quarter of 2011, the company will drill the Surber #3 well, which is a salt water disposal well. This well will be used to contain waste water from other wells drilled in the play. The company is also planning to drill the Farmland #1 well, which is directed towards the Mississippi Chat formation.
RAM Energy Resources has allocated a 2011 capital budget totaling $35 million, and believes that this budget can be funded from internally generated cash flows. The company will spend $18 million for development and recompletion activities on mature fields in the company’s portfolio. Another $9 million will be directed towards exploratory activities, and the balance of $8 million will be capitalized expenses including land and seismic costs.
For more information on the company, go to www.ramenergy.com