In a bid to enhance the value of the company’s shares, Ram Energy Resources is looking into a slew of options, including the possible sale of the firm, refinancing or recapitalization.
Revealing this Tuesday, the oil and natural gas Company said it had hired an advisory firm, Jefferies & Company, for the purpose.
The aim, said Ram, was to boost the Company’s shares by as much as 37%. Notably, Jefferies & Co. also happens to be the top shareholder of the firm.
However, the Ram Energy’s latest move would not alter its current business plans, it said, adding the drilling and development goals would remain the same as drawn at the start of the year.
But experts in the field say that instead of exploring other options like refinancing or recapitalization, the Company should opt for sale, given the huge amount of debt it has to repay.
Ram Energy owes loaners about $246.9 million, the amount almost the double of the firm’s current market capitalization.
RBC Capital Markets analyst Leo Mariani said: “The stock has not been fairly valued in the market, so I don't think it would be a terrible idea for them to look at ways of trying to augment value for the shareholders”.