SEC Filing Summary: Ram Energy Resources, Inc. (Form 8-K)
Business Context and Reporting Period
This Form 8-K was filed on November 2, 2010, reporting an event dated October 29, 2010. The registrant is Ram Energy Resources, Inc., an oil and natural gas exploration and production company. The filing discloses the entry into a material definitive agreement to sell a significant portion of its asset base.
Key Financial Metrics and Transaction Details
- Transaction Value: Agreed purchase price of $43.75 million, subject to customary closing adjustments.
- Assets Sold: All oil and natural gas properties in the Boonsville and Newark East fields (Jack and Wise Counties, Texas), including Bend Conglomerate shallow gas properties and North Texas Barnett Shale properties (both producing and undeveloped).
- Reserve Impact: The sold properties held approximately 26.4 billion cubic feet equivalent (Bcfe) of proved reserves, representing an estimated 13% of the company's year-end 2009 proved reserves (204 Bcfe).
- Production Impact: For the quarter ended June 30, 2010, net production from these properties averaged 5,635 Mcfe per day, accounting for 10% of aggregate field operating cash flow.
- Closing Date: Scheduled for December 8, 2010.
Material Changes Versus Prior Period
This filing represents a material change in the company's asset portfolio rather than a periodic financial performance update. The transaction will result in the divestiture of 13% of the company's proved reserves and 10% of its recent field operating cash flow contribution. The filing does not provide comparative financial statements for revenue, profit, or debt levels for the current period versus the prior period.
Guidance, Outlook, and Risks
The filing does not contain updated financial guidance or management commentary regarding future outlook beyond the transaction details. The primary contingency noted is that the purchase price is subject to customary closing adjustments. The effective date of the sale is retroactive to October 1, 2010.
Key Facts for Investor Verification
- Verify the final closing date and whether the transaction closes on the scheduled date of December 8, 2010.
- Confirm the final purchase price after customary closing adjustments are applied to the $43.75 million base.
- Assess the impact of losing 13% of proved reserves and 10% of operating cash flow on future production guidance.
- Review the use of proceeds from the $43.75 million sale in subsequent filings.
- Note the discrepancy between the request metadata (Battalion Oil Corp) and the filing content (Ram Energy Resources, Inc.).