RAM Energy Resources Announces New $250 Million Revolving Credit Facility and $75 Million New Term Loan Facility

RAM Energy Resources, Inc. (Nasdaq: RAME) today announced that it entered into a new $250 million Revolving Credit Facility and a $75 million Term Loan Facility on March 15, 2011, replacing its previous maturing credit facility. SunTrust Robinson Humphrey is the agent for the revolving facility, and Guggenheim Corporate Funding LLC is the agent for the term loan facility. The borrowing base of the new facility was initially set at $150 million versus its previous level of $145 million under the prior facility. All such funds advanced under the revolving facility can be paid down and re-borrowed during the five-year term of the revolver.

The revolver will initially bear interest at LIBOR plus a margin of 3.25%, which can range between 2.5% to 3.25% depending on the percentage of borrowing base used. Similarly, the term loan portion of the credit facility initially provides for payments of interest only during its five and one-half year term, with the initial interest rate of LIBOR plus 9.0% with a 2% LIBOR floor. RAM anticipates an initial blended interest rate of approximately 7.0% on its existing outstanding borrowings, in contrast to the average blended interest rate of 8.0% for 2010. Assuming the current business plan and the new blended interest cost, cash interest costs for the remainder of 2011 should be approximately $1.3 million lower.

“With the improvement in RAM’s balance sheet following the sale of non-core natural gas properties late in 2010, our 2011 non-acquisition capital budget of $35.0 million, combined with the successful replacement of the previous maturing credit facility with our new, more traditional first and second lien credit facilities, we are substantially repositioned to grow the company and improve shareholder value,” said Larry Lee, CEO.

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 the company’s pursuit of strategic alternatives, its borrowing base, estimated blended interest rate, forecast of interest costs and savings over interest costs in 2010, anticipated capital spending, as well as 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, 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 Energy Resources

RAM Energy Resources, Inc. is an independent energy company engaged in the acquisition, exploitation, exploration, and development of oil and 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 RAME. For additional information, visit the company website at www.ramenergy.com.

Ram Energy Resources, Inc. (MM) (NASDAQ:RAME)
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