RAME Ram Energy Resources, Inc. (MM)

RAM Energy Resources, Inc. (Nasdaq: RAME) today announced an increase in preliminary production volume in the second quarter compared to that of the first quarter 2006. Preliminary production for the second quarter 2006 was 330 thousand barrel equivalents (BOE) of oil and natural gas, nearly a 4 percent increase compared to first quarter production of 318 thousand BOE. Preliminary average daily production for the second quarter was 3,626 BOE compared to 3,533 BOE for the first quarter. Production growth is being driven by the increase in development drilling approved in the company's 2006 capital expenditure budget. Oil and gas related capital expenditures were $ 4.6 million in the second quarter 2006, of which $3.9 million was allocated to drilling new development wells and $0.7 million was for exploratory costs. Total non-acquisition capital expenditures in the second quarter are in line with RAM's targeted non-acquisition capital budget of $24.3 million for the 2006 year. Second Quarter 2006 Operations Update During the second quarter RAM participated in the drilling of 22 gross (21.74 net) development wells and one gross (.36 net) exploratory well. All of the development wells and the exploratory well are capable of commercial production. In the Electra/Burkburnett area of North Texas, the company's largest producing area, RAM drilled 21 net wells, of which 16 were completed as producing wells and 5 were in various stages of completion at the end of the second quarter. The company owns a 100 percent working interest in and operates all 21 of the wells. The company drilled the Sealy #B-6 in the Boonsville area during June and is currently completing this well. RAM plans to spud a well at a second proved undeveloped location in the Boonsville area during the third quarter and owns a 74 percent working interest in and operates these wells. In the company's Barnett Shale acreage in Jack and Wise Counties, Texas, RAM participated in the drilling of the Etta Burress #1H well, which is currently being completed, and RAM owns a 36 percent working interest in this well. The company continues to acquire and interpret additional seismic data covering a portion of its Barnett Shale acreage. As a result, RAM currently owns 27 square miles, and is currently acquiring an additional 7 square miles, of 3-D seismic data covering the company's 27,700 gross (6,800 net) acres in the Barnett Shale. The seismic data is being used to target additional drilling locations. Currently the company owns an interest in nine (gross) Barnett Shale producing wells, two of which are operated by RAM, six of which are operated by Devon (formerly Chief Oil & Gas, Inc.) and one of which is operated by EOG. In the company's non-operated Vinegarone Field in south Texas, the Coe 27-2 well was spudded on July 2. This is the first of three successive wells to be drilled in this field. RAM has a 25 percent working interest in the Vinegarone Field and plans to participate in all three of the proposed wells. 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 estimates of production, planned capital spending, anticipated drilling activity, 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. 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.