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Tremisis Energy Acquisition Corp. Announces Third Quarter 2005 Financial and Operating Results and Updated Reserve Report for RAM Energy, Inc.

Posted on: Friday, 11 November 2005, 18:00 CST

Tremisis Energy Acquisition Corp. (OTCBB:TEGY), today announced third quarter 2005 financial and operating results for RAM Energy, Inc. In October 2005, Tremisis announced that it had entered into a definitive agreement pursuant to which RAM will become a wholly-owned subsidiary of Tremisis upon consummation of the merger and subject to the conditions described in the Form 8-K filed by Tremisis with the SEC on October 26, 2005.

For the third quarter ended September 30, 2005, RAM reported oil and natural gas sales revenues of $18.0 million, up $14.4 million, or 400% from third quarter 2004. The revenue increase was primarily attributable to the late 2004 WG acquisition and a 54% increase in realized prices. Production during the period was 337 thousand barrels of oil equivalent, or MBoe, up from 104 MBoe in the third quarter of 2004. Operating revenues for the period were $6.6 million, due principally to an $11.8 million loss in realized and unrealized hedging activity, which compares with operating revenues of $3.6 million and a realized and unrealized hedging loss of $327 thousand in the third quarter of 2004. The company reported a net loss of $4.4 million in the period compared to a net loss of $393 thousand in the prior year.

During the third quarter of 2005, the Company's net oil production was 199 thousand barrels, or Mbls, up 744% from the prior year, while natural gas production in the quarter was 593 million cubic feet, or MMcf, a 27% gain over third quarter 2004. The Company also produced 40 Mbls of natural gas liquids, or NGLs, during the 2005 quarter, an increase of 2500% over the 2 Mbls of NGLs produced during the third quarter of 2004. The average realized price for oil in third quarter 2005 was $60.36, compared to $41.78 per barrel for the same period in 2004. The average realized price for natural gas was $7.48 per thousand cubic feet, or Mcf, for the third quarter of 2005, compared to $5.45 per Mcf for the three months ended September 30, 2004. The average realized price for NGLs during the 2005 quarter was $39.10 per Bbl., compared to $26.54 during the quarter ended September 30, 2004.

For the three months ended September 30, 2005, RAM recorded an $11.8 million loss from derivatives compared to a loss of $327 thousand in the same period in the prior year. The losses during the period were the net result of recording unrealized mark-to-market values of the contracts, the premium costs paid for various derivative contracts, and actual contract settlements.

Reserve Summary

RAM's total oil and natural gas reserves at September 30, 2005 were 24.3 million barrels of oil equivalent, or MMBoe, of which 19.7 MMBoe, or 81%, were classified as proved reserves and 4.6 MMBoe, or 19%, were classified as probable reserves. All of the Company's probable reserves were attributable to RAM's 28,000 gross (6,800 net) leasehold acres in the ongoing Barnett Shale play in the Fort Worth Basin of northern Texas. At September 30, 2005, the present value of future net revenues attributable to estimated production from RAM's reserves, based on prices being received by the Company in each producing field on the last day of the quarter, discounted at 10% per annum, or PV-10% value, was $552 million, of which $445 million was attributable to proved reserves and $107 million was attributable to probable reserves.

Based on reserve reports prepared for the Company by independent oil and gas engineering firms, at September 30, 2005, RAM's estimated proved reserves were approximately 19.7 MMBoe, of which 60% were oil, while the remaining 40% were natural gas and natural gas liquids (NGL's). Additionally 71% of the proved reserves are classified as developed reserves, with 29% classified as undeveloped. RAM Energy, Inc. Total Net Reserves(*) As of September 30, 2005 Oil Gas NGL Oil PV-10 Mbls MMcf Mbls MBOE $ in mils --------------------------------------------------- Proved Reserves 11,907 34,327 2,071 19,699 $444.9 Probable Reserves 280 26,022 0 4,671 $107.0 Grand Total 12,187 60,349 2,071 24,316 $552.0 (*) SEC pricing = $63.62/Bbl; $12.70/Mcf; $39.21/BNGL

Definition -- Probable Reserves

Probable reserves are estimates of unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable. For estimates of probable reserves based on probabilistic methods, there should be at least a 50% probability that the quantities of reserves actually recoverable will equal or exceed the sum of the estimated proved plus probable reserves. The SEC has generally permitted oil and gas companies, in filings made with the SEC, to disclose only proved reserves the company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The term "probable" is used to describe volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC's guideline may prohibit the company from including with its filings with the SEC. RAM Energy, Inc. Statement of Operations ($000) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, (unaudited) (unaudited) ---------------------------------------------------------------------- 2005 2004 2005 2004 ---------------------------------------------------------------------- OPERATING REVENUES: ---------------------------------------------------------------------- Oil and natural gas sales $17,974 $3,568 $48,305 $12,499 ---------------------------------------------------------------------- Realized and unrealized loss from derivatives (11,760) (327) (19,796) (901) ---------------------------------------------------------------------- Other 398 67 982 117 ------- ------- ------- ------- ---------------------------------------------------------------------- Total operating revenues 6,612 3,308 29,491 11,715 ---------------------------------------------------------------------- - ---------------------------------------------------------------------- OPERATING EXPENSES: ---------------------------------------------------------------------- Oil and natural gas production taxes 919 243 2,460 914 ---------------------------------------------------------------------- Oil and natural gas production Expenses 3,917 619 11,453 1,803 ---------------------------------------------------------------------- Amortization and depreciation 3,397 652 9,213 2,288 ---------------------------------------------------------------------- Accretion expense 71 15 217 46 ---------------------------------------------------------------------- General and administrative, overhead and other expenses, net of operator's overhead fees 2,367 1,394 6,285 4,454 ------- ------- ------- ------- ---------------------------------------------------------------------- Total operating expenses 10,671 2,923 29,628 9,505 ------- ------- ------- ------- ---------------------------------------------------------------------- Operating income (loss) (4,059) 385 (137) 2,210 ------- ------- ------- ------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- OTHER INCOME (EXPENSE): ---------------------------------------------------------------------- Interest expense (3,145) (1,029) (8,769) (3,394) ---------------------------------------------------------------------- Interest income 19 11 41 31 ---------------------------------------------------------------------- Gain on sale of RBOC - - - 12,139 ------- ------- ------- ------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- Income (loss) before taxes (7,185) (633) (8,865) 10,986 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Income tax (benefit) provision (2,720) (240) (3,359) 4,175 ------- ------- ------- ------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- Net income (loss) $(4,465) $(393) $(5,506) $6,811 ======== ====== ======== ======= ---------------------------------------------------------------------- ---------------------------------------------------------------------- EARNINGS (LOSS) PER SHARE: ---------------------------------------------------------------------- Basic $(1,964.36)$(159.11)$(2,422.35)$2,578.95 ---------------------------------------------------------------------- Diluted $(1,895.16)$(153.49)$(2,337.02)$2,488.50 ---------------------------------------------------------------------- ---------------------------------------------------------------------- WEIGHTED AVERAGE SHARES OUTSTANDING: ---------------------------------------------------------------------- Basic 2,273 2,470 2,273 2,641 ---------------------------------------------------------------------- Diluted 2,354 2,560 2,354 2,737 ----------------------------------------------------------------------

About Tremisis Energy Acquisition Corporation

Tremisis, based in New York, New York, was incorporated in January 2004 to acquire an operating business in the energy or environmental industry. Tremisis consummated its initial public offering on May 18, 2004, receiving net proceeds of approximately $34 million through the sale of 6.325 million units of its securities at $6.00 per unit. Each unit was comprised of one share of Tremisis common stock and two redeemable and convertible common stock purchase warrants having an exercise price of $5.00. Tremisis holds over $33.5 million in a trust account maintained by an independent trustee, which will be released to the company upon the consummation of the merger with RAM (less any amounts returned to Tremisis stockholders who elect to convert their shares to cash in accordance with Tremisis' charter). Additional information about Tremisis as well as relevant risks are detailed in Tremisis' filings with the Securities and Exchange Commission, including its report on Form 10-QSB for the period ended September 30, 2005.

About RAM Energy, Inc.

RAM Energy, Inc is a Tulsa, Oklahoma based independent oil and gas company engaged in the acquisition, exploration, exploitation and development of oil and gas properties and the production of oil and gas. RAM's producing properties are located primarily in Texas, Oklahoma and Louisiana and Mississippi.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, including, without limitation, statements regarding RAM's financial position, business strategy, plans and RAM's management's objectives and its future operations, and industry conditions, are forward-looking statements. Although RAM believes that the expectations reflected in such forward-looking statements are reasonable, neither Tremisis nor RAM can give any assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from RAM's expectations ("Cautionary Statements") include, without limitation, the actual qualities of RAM's oil and natural gas reserves, future production levels, future prices and demand for oil and natural gas, the results of RAM's future exploration and development activities, future operating and development costs, the effect of existing and future laws and governmental regulations (including those pertaining to the environment), the results of future financing efforts, and the political and economic climate of the United States. All subsequent written and oral forward-looking statements attributable to Tremisis or RAM, or persons acting on their behalf, are expressly qualified in their entirety by the Cautionary Statements. Neither Tremisis nor RAM assumes any obligation to update the information contained in this press release.

Additional Information

Tremisis stockholders are urged to read the proxy statement regarding the proposed transaction when it becomes available because it will contain important information. Copies of filings by Tremisis, which will contain information about Tremisis and RAM, will be available without charge, when filed, at the Securities and Exchange Commission's internet site (http://www.sec.gov), and, when filed, will be available from Tremisis, without charge, by directing a request to Tremisis Energy Acquisition Corporation, 1775 Broadway, Suite 604, New York, New York 10019.

Source: Business Wire

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