TEGY Transact Energy Corporation (CE)

Tremisis Energy Acquisition Corp. (OTCBB: TEGY), today announced 2005 year-end financial 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 year ended December 31, 2005, RAM reported oil and natural gas sales of $66.2 million, an increase of 269% over the prior year sales of $18.0 million. The increase in oil and natural gas sales revenues was primarily attributable to the late 2004 WG acquisition and a 34% increase in average realized prices, before the effects of hedging. Total revenue for the year was $55.4 million, an increase of 87% over 2004, when revenue included a $12.1 million gain from the sale of a subsidiary. For the year, RAM recorded an $11.7 million loss from hedging activities, including $6.3 million of unrealized mark-to-market losses on derivative contracts that remained open at year-end, $1.5 million in premium costs and $3.9 million in realized losses on contracts actually settled during the year. Operating income for the year was $13.9 million, compared with operating income of $14.8 million in 2004, which included a $12.1 million gain on sale of a subsidiary. The decrease was due to the aforementioned $11.7 million in realized and unrealized losses from derivatives in 2005, and a significant increase in both oil and gas production expenses and depreciation and amortization expense associated with the increase in oil and natural gas production during 2005 versus 2004. During 2005, production volumes totaled 1.40 million barrels of oil equivalent (MMBoe), which was 275% of 2004's production of .51 MMBoe. The company's average daily production for 2005 was 3,848 Boe per day versus 1,402 Boe per day for 2004. Before the effects of hedging, average realized prices received by RAM in 2005 were $53.75 per Bbl for oil, $6.61 per Mcf for natural gas and $36.33 per Bbl for natural gas liquids, or NGLs, as compared to $37.63 per Bbl of oil, $5.25 per Mcf of natural gas and $26.41 per Bbl of NGLs in 2004. 2005 Operational Highlights In 2005, RAM drilled or participated in the drilling of 67 gross (58 net) wells on its oil and gas properties, 66 of which have been successfully completed as producing wells and one awaiting completion. One of the wells drilled during 2005 was an exploratory well in which RAM owns a 25% non-operating working interest, and the remaining 66 wells were development wells, 57 of which were drilled and are being operated by RAM. In addition, RAM conducted or participated in recompletion operations on 22 of its existing wells, resulting in the reestablishment or enhancement of production from 21 of these wells, with one well remaining shut in at year end. Total capital expenditures were approximately $15.0 million in 2005. Capital expenditures in connection with the drilling and completion of the aforementioned 67 wells were approximately $7.6 million, while capital expenditures in connection with RAM's 2005 recompletion operations were approximately $1.7 million. 2005 Year End Reserves At December 31, 2005, RAM's estimated net proved reserves were 18.8 MMBoe, of which 60% were crude oil, 30% were natural gas and 10% were natural gas liquids, with a present value of future net revenues discounted at 10% (PV-10 Value) of $345.5 million. Year-end prices used in calculating the PV-10 Value at December 31, 2005 were $58.63 per Bbl of oil, $35.89 per Bbl of NGLs and $9.14 per Mcf of natural gas. Approximately 70% of the company's reserves at December 31, 2005 were classified as proved developed reserves. -0- *T RAM Energy Corporation Operating Data Year ended December 31, ------------------------- Operating Data: 2005 2004 Production volumes: Oil and condensate (MBbls) 787 178 NGL's (MBbls) 170 12 Natural gas (MMcf) 2,681 1,928 Total (MBOE) 1,405 512 Average realized prices: Oil and condensate (per Bbl) $53.75 $37.63 NGL's (per Bbl) 36.33 26.41 Natural gas (per Mcf) 6.61 5.69 Total (per BOE) 47.16 35.14 ---------------------------------------------------------------------- RAM Energy Corporation Condensed Balance Sheet (in thousands) As of December 31, ------------------------- Balance Sheet Data: 2005 2004 Cash and short-term investments $70 $1,175 Net property and equipment 131,132 128,458 Total assets 143,276 140,324 Long-term debt, including current portion 112,846 117,344 Stockholders' deficiency (20,769) (19,912) RAM Energy Corporation Income Statement (in thousands) Year ended December 31, ---------------------------- Operating Statement Data: 2005 2004 Revenues and other operating income Oil and natural gas sales $66,243 $17,975 Sale of subsidiary or properties - 12,139 Other 851 338 Unrealized gain (loss) on derivatives (11,695) (793) ------------- ------------ Total revenues and other operating income $55,399 $29,659 ------------- ------------ Operating Expenses Oil and natural gas production taxes 3,320 1,263 Oil and natural gas production expense 16,099 3,600 Amortization and depreciation 12,972 3,273 Accretion expense 510 78 General and administrative 8,610 6,601 ------------- ------------ Total operating expenses 41,511 14,815 Income from operations 13,888 14,844 Interest expense (net of interest income) (12,539) (5,035) ------------- ------------ Income before taxes 1,349 9,809 Income taxes 806 3,733 ------------- ------------ Net income $543 $6,076 ============= ============ *T About Tremisis Energy Acquisition Corporation Tremisis, based in New York, New York, was incorporated in February 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 quantities 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.