Oct 16 (Reuters) - RAM Energy Resources Inc RAME.O said it agreed to acquire privately held Ascent Energy Inc for about $289.5 million, adding about 18.6 million barrels of oil equivalent of proved reserves.
The deal includes $185.0 million in cash, 20.0 million to 20.5 million shares of RAM common stock, and 6.2 million of RAM warrants, the independent energy company said in a statement.
The assets of Ascent will add materially to combined production and cash flow, provide additional diversification to potential sources of near-to-intermediate term growth and expand its portfolio of exploratory prospects for future growth, RAM said.
RAM plans to fund the cash portion of the deal with borrowings under an expanded credit facility.
RAM said it is in talks with a lending group to expand its existing $300 million credit to a $500 million secured credit facility.
The deal is expected to close by Nov. 30, the Tulsa, Oklahoma-based company said. (Reporting by Anirvan Ghosh in Bangalore)