MINNETONKA, Minn., Aug. 14, 2012 (GLOBE NEWSWIRE) -- Black Ridge Oil & Gas, Inc. (formerly known as Ante5, Inc.) (OTCBB:ANFC) today announced revenues of $1,380,524 from sales of crude oil and natural gas for the three months ended June 30, 2012 compared to revenues of $250,590 for the three months ended June 30, 2011, an increase of $1,129,934, or 451%. These revenues are due to the drilling and development of producing wells.
For the six months ended June 30, 2012, the Company reported revenues of $2,046,730, an increase of $1,699,200 or 489% over revenues of $347,530 reported during the six months ended June 30, 2011. As of June 30, 2012, the Company had 48 gross (1.83 net) producing wells, and an additional 11 gross (0.39 net) wells that were either preparing to drill, drilling, awaiting completion, or completing, compared to 11 gross (0.45 net) producing wells, and an additional 13 gross wells that were either preparing to drill, drilling, awaiting completion, or completing as of June 30, 2011.
Second Quarter 2012 Highlights
- Quarterly revenue of $1,380,524.
- For the six months ended June 30, 2012, production was 25,561 barrels of oil equivalent (BOE), an increase of 21,701 BOE from the six months ended June 30, 2011, representing a growth rate of 562%.
- 97% of total production was from oil.
- Positive Adjusted EBITDA of $537,771 in the quarter ended June 30, 2012, an increase of $735,099 from Adjusted EBITDA of negative $197,328 in the quarter ended June 30, 2011. For the six months ended June 30, 2012, Adjusted EBITDA was $507,964, an increase of $859,183 from Adjusted EBITDA of negative $351,219 in the six months ended June 30, 2011.
- On April 4, 2012, the Company entered into a new Secured Revolving Credit Agreement with Dougherty Funding LLC with availability of up to $10,000,000.
- As of June 30, 2012, the Company controlled approximately 11,213 net mineral acres in the Bakken and Three Forks formations. In addition, the Company owned working interests in 59 gross wells representing 2.23 net wells that are preparing to drill, drilling, awaiting completion, complete or producing.
Ken DeCubellis, Black Ridge's Chief Executive Officer, commented, "We are proud to report triple digit revenue and production growth during the second quarter as well as for the first six months of 2012. Given our cash position, our credit facility, and the strength of our balance sheet, we believe that we are well positioned to continue the planned development of our Bakken acreage over the second half of 2012 and into 2013 without raising any additional equity capital."
Operational Update
Producing Wells: The following table sets forth Bakken and Three Forks wells in which Black Ridge holds a participating interest that were producing as of June 30, 2012.
| Well | Operator | Location | WI(1) | IP Rate(2) |
| Fairbanks 1-20H | Continental | Williams, ND | 0.304 | TBD |
| Christensen 159-102-8-5-1H | Newfield | Williams, ND | 0.300 | 562 |
| Go-State 157-97-2116H-1 | Hess | Williams, ND | 0.130 | 558 |
| Pasternak #1-32-29HC | G3 Operating | Williams, ND | 0.125 | 370 |
| Colfax 1X-19H | Continental | Williams, ND | 0.106 | 747 |
| Dahl Federal 2-15H (3) | SM-energy | McKenzie, ND | 0.087 | TBD |
| Lowe 18-19-158N-99W | Crescent Point | Williams, ND | 0.083 | 24 |
| Weyrauch 15-11H | Hess | Williams, ND | 0.083 | 824 |
| Stromme Family Trust 157-101-11C-2-1H | Petro-Hunt | Williams, ND | 0.079 | TBD |
| Pasternak Trust 157-100-18A-19-1H | Petro-Hunt | Williams, ND | 0.078 | 534 |
| A.Tufto 18-19 #1-H | Brigham | Williams, ND | 0.072 | 2,541 |
| Sidonia 15-1102H | EOG | Mountrail, ND | 0.063 | 510 |
| Love 11-2 #1H | Samson | Williams, ND | 0.062 | 343 |
| Erickson 41-25 SWH | Denbury | McKenzie, ND | 0.050 | 1,051 |
| Austin 17-20-158N-99W | Crescent Point | Williams, ND | 0.049 | 108 |
| Burke 24-08H | EOG | Mountrail, ND | 0.016 | 673 |
| Revolver 1-35H | Slawson | Mountrail, ND | 0.016 | 1,770 |
| White 157-100-17B-20-1H | Petro-Hunt | Williams, ND | 0.016 | 411 |
| Revolver 2-35H | Slawson | Mountrail, ND | 0.016 | TBD |
| En-Jorstad-157-94-0904H-1 | Hess | Mountrail, ND | 0.012 | 647 |
| Marshall 1-13H | Continental | Dunn, ND | 0.012 | 844 |
| Miller 157-101-12C-1-1H | Petro-Hunt | Williams, ND | 0.011 | 2,112 |
| Vanville 22-2623H | EOG | Burke, ND | 0.010 | 75 |
| Vanville 21-2635H | EOG | Burke, ND | 0.010 | 240 |
| Olson 15-36H | Hess | Williams, ND | 0.010 | 1,135 |
| Clearwater 1-24-25H 1 | Hunt | Mountrail, ND | 0.010 | 254 |
| Kannegeiter 160-90-17-P-1H | OXY | Burke, ND | 0.010 | 9 |
| Berger 156-100-7-6-1H | Liberty | Williams, ND | 0.010 | TBD |
| Opedahl 21x-11 | XTO | Williams, ND | 0.010 | 394 |
| Talkington 21-30TFH | Whiting | Stark, ND | 0.008 | 809 |
| Talkington 41-30PH | Whiting | Stark, ND | 0.008 | TBD |
| Probe 1-19-30HMB | Slawson | Mountrail, ND | 0.008 | 494 |
| Clearwater 1-26-23H 1 | Hunt | Mountrail, ND | 0.007 | 174 |
| Lindy 156-100-10-3-1H | Liberty | Williams, ND | 0.007 | TBD |
| Pankowski 4-6H | Kodiak | Williams, ND | 0.006 | 358 |
| En-Charles Wood-157-94-1720H-1 | Hess | Mountrail, ND | 0.006 | 347 |
| EN-Will Trust B-157-94-2635H-1 | Hess | Mountrail, ND | 0.005 | 402 |
| EN-Will Trust B-157-94-2635H-2 | Hess | Mountrail, ND | 0.005 | 412 |
| EN-Will Trust B-157-94-2635H-3 | Hess | Mountrail, ND | 0.005 | 372 |
| Hodenfield 15-23H | Hess | Williams, ND | 0.005 | 2,042 |
| Tempe #1-29H | Continental | Divide, ND | 0.004 | 338 |
| Go-Soine A-156-97-3229H-1 | Hess | Williams, ND | 0.004 | 870 |
| Mathewson 1-30H | Continental | Williams, ND | 0.004 | 662 |
| Marcy 1-24H | Continental | Williams, ND | 0.003 | 472 |
| Setterlund 159-94-28B-33-1H | Petro-Hunt | Burke, ND | 0.002 | 208 |
| Scanlan 3-5H | Kodiak | Williams, ND | 0.002 | 819 |
| Helstad 158-99-34D-27-1H | Petro-Hunt | Williams, ND | 0.001 | 353 |
| Feller 1-22H | Continental | Williams, ND | 0.001 | TBD |
| Vig 157-99-10D-3-1H | Petro-Hunt | Williams, ND | 0.001 | 336 |
| (1) | The working interests are based on Black Ridge's internal records and may be subject to change by operators' third-party legal counsel in preparing final division order title opinions for each well. |
|
(2) |
The initial production rate ("IP Rate") for each well expressed in barrels of oil per day ("BOPD") does not include associated natural gas production. Initial production is generally the 24-hour "Peak Production Rate" that may be measured following the initial day of production, depending on operator procedure or well profiles, although the calculation may vary from operator to operator. |
| (3) | This well was not included in quarter end financial reporting because our Working Interest is subject to a class action lawsuit related to the state of North Dakota's control of riparian acreage. |
"Drilling" Wells: The following table sets forth Bakken and Three Forks wells in which Black Ridge holds a participating interest that are either preparing to drill, drilling, awaiting completion or completing as of June 30, 2012.
| Well | Location | Operator | WI(1) | |||
| Peggy Schettler 14-33H | Dunn, ND | Marathon | 0.125 | |||
| Go-Hill 158-98-3427H-1 | Williams, ND | Hess | 0.102 | |||
| King 157-101-3B-10-1H | Williams, ND | Petro-Hunt | 0.068 | |||
| Go-Durning 157-97-2932H-1 | Williams, ND | Hess | 0.063 | |||
| Talkington 11-30PH | Stark, ND | Whiting | 0.008 | |||
| En-Engebretson 157-94-1003H-1 | Mountrail, ND | Hess | 0.005 | |||
| Washburne 1-22H | Williams, ND | Continental | 0.003 | |||
| Marcy 3-24H | Williams, ND | Continental | 0.003 | |||
| Marcy 2-24H | Williams, ND | Continental | 0.003 | |||
| Hokanson 157-99-1A-12-1H | Williams, ND | Petro-Hunt | 0.003 | |||
| Homer 1-14H | Williams, ND | Continental | 0.002 | |||
|
(1) |
The working interests are based on Black Ridge's internal records and may be subject to change by operators' third-party legal counsel in preparing final division order title opinions for each well. |
|||||
Adjusted EBITDA
In addition to reporting net income (loss) as defined under GAAP, we also present Adjusted EBITDA. We define Adjusted EBITDA as net income before (i) interest expense, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) accretion of abandonment liability, and (v) non-cash expenses relating to share based payments recognized under ASC Topic 718. We believe the use of non-GAAP financial measures provides useful information to investors regarding our current financial performance; however, Adjusted EBITDA does not represent, and should not be considered an alternative to GAAP measurements. We believe this measure is useful in evaluating our fundamental core operating performance. Specifically, we believe the non-GAAP Adjusted EBITDA results provide useful information to both management and investors by excluding certain expenses that our management believes are not indicative of our core operating results. Although we use adjusted EBITDA to manage our business, including the preparation of our annual operating budget and financial projections, we believe that non-GAAP financial measures have limitations and do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. A reconciliation of Adjusted EBITDA to Net Income, GAAP, is included below:
| Black Ridge Oil & Gas, Inc. | ||||
| Reconciliation of Adjusted EBITDA | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Net Loss | $ (617,445) | $ (415,313) | $ (1,378,302) | $ (466,237) |
| Add Back: | ||||
| Interest Expense, net, excluding amortization of warrant based financing costs | 137,196 | 3,462 | 221,138 | 2,306 |
| Income Tax Provision | (227,381) | (57,900) | (381,565) | (332,200) |
| Depreciation, Depletion, and Amortization | 533,446 | 71,342 | 827,199 | 110,612 |
| Accretion of Abandonment Liability | 1,208 | 146 | 2,005 | 266 |
| Common stock issued for terminated oil and gas acquisition | 438,539 | -- | 438,539 | -- |
| Share Based Compensation | 272,208 | 200,935 | 778,950 | 334,034 |
| Adjusted EBITDA | $ 537,771 | $ (197,328) | $ 507,964 | $ (351,219) |
About the Company
Black Ridge Oil & Gas is an oil and gas exploration and production company based in Minnetonka, Minnesota. Black Ridge's focus is exclusive to the Williston Basin Bakken and Three Forks trend in North Dakota and Montana. Black Ridge Oil & Gas controls approximately 11,213 net Bakken and/or Three Forks acres. For additional information, visit the Company's website at www.blackridgeoil.com.
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| BLACK RIDGE OIL & GAS, INC. (Formerly Ante5, Inc.) | ||
| CONDENSED BALANCE SHEETS | ||
| June 30, | December 31, | |
| 2012 | 2011 | |
| ASSETS | (Unaudited) | |
| Current assets: | ||
| Cash and cash equivalents | $ 872,332 | $ 1,401,141 |
| Accounts receivable | 1,236,622 | 673,003 |
| Prepaid expenses | 93,051 | 40,599 |
| Current portion of contingent consideration receivable | 2,136,000 | 2,309,752 |
| Total current assets | 4,338,005 | 4,424,495 |
| Property and equipment: | ||
| Oil and natural gas properties, full cost method of accounting | ||
| Proved properties | 25,335,616 | 10,867,443 |
| Unproved properties | 12,839,032 | 13,236,057 |
| Other property and equipment | 85,917 | 78,489 |
| Total property and equipment | 38,260,565 | 24,181,989 |
| Less, accumulated depreciation, amortization and depletion | (4,152,696) | (3,325,497) |
| Total property and equipment, net | 34,107,869 | 20,856,492 |
| Contingent consideration receivable, net of current portion and allowance of $878,650 | 3,536,603 | 3,698,850 |
| Debt issuance costs | 267,408 | 52,049 |
| Total other assets | 3,804,011 | 3,750,899 |
| Total assets | $ 42,249,885 | $ 29,031,886 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 10,731,626 | $ 2,820,936 |
| Accounts payable, related party | -- | 9,206 |
| Royalties payable, related party | 283,631 | 300,431 |
| Total current liabilities | 11,015,257 | 3,130,573 |
| Asset retirement obligations | 54,593 | 3,900 |
| Revolving credit facilities | 5,825,000 | -- |
| Deferred tax liability | 630,530 | 1,012,095 |
| Total liabilities | 17,525,380 | 4,146,568 |
| Stockholders' equity: | ||
| Preferred stock, $0.001 par value, 20,000,000 shares | ||
| authorized, no shares issued and outstanding | -- | -- |
| Common stock, $0.001 par value, 100,000,000 shares | ||
| authorized, 47,979,990 shares issued and outstanding | 47,980 | 47,403 |
| Additional paid-in capital | 29,275,586 | 28,058,674 |
| Accumulated (deficit) | (4,599,061) | (3,220,759) |
| Total stockholders' equity | 24,724,505 | 24,885,318 |
| Total liabilities and stockholders' equity | $ 42,249,885 | $ 29,031,886 |
| BLACK RIDGE OIL & GAS, INC. (Formerly Ante5, Inc.) | ||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| For the Three Months | For the Six Months | |||
| Ended June 30, | Ended June 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Oil and gas sales | $ 1,380,524 | $ 250,590 | $ 2,046,730 | $ 347,530 |
| Operating expenses: | ||||
| Production expenses | 121,732 | 11,352 | 265,883 | 16,975 |
| Production taxes | 158,378 | 27,573 | 233,810 | 37,003 |
| General and administrative | 1,237,883 | 489,109 | 1,951,774 | 857,986 |
| Depletion of oil and gas properties | 527,712 | 68,382 | 814,615 | 104,530 |
| Accretion of discount on asset retirement obligations | 1,208 | 146 | 2,005 | 266 |
| Depreciation and amortization | 5,734 | 2,960 | 12,584 | 6,082 |
| Total operating expenses | 2,052,647 | 599,522 | 3,280,671 | 1,022,842 |
| Net operating (loss) | (672,123) | (348,932) | (1,233,941) | (675,312) |
| Other income (expense): | ||||
| Interest income | 200 | 256 | 242 | 1,412 |
| Interest (expense) | (172,903) | (25,490) | (526,168) | (25,490) |
| Loss on disposal of equipment | -- | (1,061) | -- | (1,061) |
| Indemnification expenses | -- | (97,986) | -- | (97,986) |
| Total other income (expense) | (172,703) | (124,281) | (525,926) | (123,125) |
| Loss before provision for income taxes | (844,826) | (473,213) | (1,759,867) | (798,437) |
| Provision for income taxes | 227,381 | 57,900 | 381,565 | 332,200 |
| Net (loss) | $ (617,445) | $ (415,313) | $(1,378,302) | $ (466,237) |
| Weighted average number of common shares outstanding - basic and fully diluted | 47,789,762 | 40,505,760 | 47,596,363 | 39,180,194 |
| Net (loss) per share - basic and fully diluted | $ (0.01) | $ (0.01) | $ (0.03) | $ (0.01) |
| BLACK RIDGE OIL & GAS, INC. (Formerly Ante5, Inc.) | ||
| CONDENSED STATEMENTS OF CASH FLOWS | ||
| (Unaudited) | ||
| For the Six Months | ||
| Ended June 30, | ||
| 2012 | 2011 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net (loss) | $ (1,378,302) | $ (466,237) |
| Adjustments to reconcile net (loss) to net cash used in operating activities: | ||
| Depletion of oil and gas properties | 814,615 | 104,530 |
| Depreciation and amortization | 12,584 | 6,082 |
| Amortization of debt issuance costs | 80,463 | 3,718 |
| Accretion of discount on asset retirement obligations | 2,005 | 266 |
| Loss on disposal of equipment | -- | 1,061 |
| Common stock issued for terminated oil & gas acquisition | 438,539 | -- |
| Common stock warrants | 259,069 | 18,506 |
| Common stock warrants, related parties | 45,719 | 3,266 |
| Common stock options, related parties | 474,162 | 312,262 |
| Decrease (increase) in assets: | ||
| Accounts receivable | (563,619) | (242,611) |
| Prepaid expenses | (52,452) | (95,816) |
| Contingent consideration receivable | 335,999 | 85,343 |
| Increase (decrease) in liabilities: | ||
| Accounts payable | 44,749 | (76,732) |
| Accounts payable, related party | (9,206) | 145,939 |
| Accrued expenses | -- | (47,267) |
| Royalties payable, related party | (16,800) | (4,319) |
| Deferred tax liability | (381,565) | (332,200) |
| Net cash provided by (used in) operating activities | 105,960 | (584,209) |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Proceeds from the sale of oil and gas properties | 736,625 | -- |
| Purchases of oil and gas properties and development capital expenditures | (6,893,144) | (5,665,533) |
| Purchases of other property and equipment | (7,428) | (40,533) |
| Net cash used in investing activities | (6,163,947) | (5,706,066) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Advances from revolving credit facilities | 7,825,000 | -- |
| Repayments on revolving credit facilities | (2,000,000) | -- |
| Debt issuance costs paid | (295,822) | (66,921) |
| Proceeds from the exercise of common stock options | -- | 15,600 |
| Net cash provided by (used in) financing activities | 5,529,178 | (51,321) |
| NET CHANGE IN CASH | (528,809) | (6,341,596) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 1,401,141 | 8,577,610 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 872,332 | $ 2,236,014 |
| SUPPLEMENTAL INFORMATION: | ||
| Interest paid | $ 140,917 | $ -- |
| Income taxes paid | $ -- | $ -- |
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
| Purchase of oil and gas properties paid subsequent to period-end | $ 10,288,091 | $ 3,697,835 |
| Purchase of oil and gas properties through issuance of common stock | $ -- | $ 4,940,269 |
| Capitalized asset retirement costs | $ 48,688 | $ 3,074 |
Statement as to Forward Looking Statements
Certain statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties not known or disclosed herein that could cause actual results to differ materially from those expressed herein. These statements may include projections and other "forward-looking statements" within the meaning of the federal securities laws. Any such projections or statements reflect Black Ridge Oil & Gas current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from those projected. Important factors that could cause the actual results to differ materially from those projected include, without limitation, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, volatility in commodity prices for crude oil and natural gas, environmental risks, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital or have access to debt financing, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices and other risks inherent in the Company's businesses that are detailed in the Company's Securities and Exchange Commission ("SEC") filings. Readers are encouraged to review these risks in the Company's SEC filings.