SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report September 1, 1998
(Date of earliest event reported) August 17, 1998
RAM Energy, Inc.
(Exact name of registrant as specified in its charter)
Delaware 333-42641 52-1535102
(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification)
5100 East Skelly Drive
Tulsa, Oklahoma 74135
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (918)663-2800
N/A
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS
On August 17, 1998, RAM Energy, Inc. ("RAM") completed a $6.5 million
acquisition of a one-half interest in certain proved undeveloped oil and
gas properties of Ricks Exploration, Inc. located in south Texas ("Ricks" and
the "Ricks Acquisition").
Concurrent with the Ricks Acquisition, RAM completed a $2.0 million
investment in RVC Energy, Inc., a Delaware corporation ("RVC"), in exchange
for 49.5% of RVC's voting common stock and all of RVC's non-voting common
stock. Larry E. Lee, President and Chief Executive Officer and a director
of RAM initially is the sole director of RVC. RAM and another equity owner of
RVC each have the right to designate one additional director of RVC. RVC is an
unrestricted affiliate of RAM and will be accounted for under the equity
method accounting for GAAP purposes.
Concurrent with the Ricks Acquisition, RVC acquired all of Ricks'
proved developed producing oil and gas properties in the same field and the
remaining one-half interest in the proved undeveloped properties for $14.6
million. On August 31, 1998, RVC acquired all of the outstanding common
stock of Comet Petroleum, Inc. ("Comet") for $27.8 million cash. RVC
funded both acquisitions with equity contributed by its stockholders and
borrowings under its credit facility which are non-recourse to its
stockholders, including RAM.
The oil and gas properties acquired from Ricks and a substantial
portion of the Comet properties are located in the Permian Basin and are in
close proximity to RAM's existing Permian Basin properties. RAM has been
designated as the operator of all oil and gas properties acquired from
Ricks and a majority of the Comet properties formerly operated by Comet and
its affiliates.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
RAM Energy, Inc.
September 1, 1998 By LARRY E. LEE
Larry E. Lee
President and Chief Executive Officer
