High: Low:
Last Trade Time

Company News

Ante5, Inc. Reports Record Production, Revenue and Positive Adjusted EBITDA for Its Third Quarter Ended September 30, 2011 and Provides Operations Update

Download PDF

Production for Third Quarter Ended September 30, 2011 Was 10,868 Barrels of Oil Equivalent (BOE), an Increase of 317% Over Previous Quarter Ended June 30, 2011

MINNETONKA, Minn., Nov. 14, 2011 (GLOBE NEWSWIRE) -- Ante5, Inc. (OTCBB:ANFC) today announced record oil and gas production for the third quarter ended September 30, 2011. During the quarter ended September 30, 2011, Ante5 reported revenues of $900,511. This represents an increase of 259% from $250,590 in the second quarter ending June 30, 2011 and an 829% from $96,940 in the first quarter ending March 31, 2011.  The increase in revenue is due to increased production from Ante5's 21 gross (0.66 net) producing Bakken and Three Forks wells as of September 30, 2011, compared to 11 gross (0.45 net) and 7 gross (.06 net) producing wells as of June 30, 2011, and March 31, 2011, respectively.


  • Record quarterly revenue of $900,511, up 259% from $250,590 for the quarter ended June 30, 2011 and up 829% from $96,940 for the quarter ended March 31, 2011.
  • Record quarterly production of 10,868 barrels of oil equivalent (BOE), up 317% from 2,606 BOE in the quarter ended June 30, 2011 and up 767% from 1,254 BOE in the quarter ended March 31, 2011.
  • Positive Adjusted EBITDA of $205,324 in the quarter ended September 30, 2011 primarily due to strong production operations. 
  • As of September 30, 2011, Ante5 participated in 28 gross (0.71 net) wells in the Williston Basin's Bakken and Three Forks formations.

Ken DeCubellis, Ante5's Chief Executive Officer, commented, "We are pleased to announce another record revenue and production quarter for Ante5. We ended the quarter with 28 gross (0.71 net) wells. But with strong permitting activity and a focused acquisition strategy, we currently participate in 37 gross (1.02 net) wells."

Production Growth

Metric 3rd Quarter 2011 2nd Quarter 2011 1st Quarter 2011
Net Production (BOE) 10,868 2,606 1,254
Realized Price / Barrel $85.61 $96.47 $81.84
Average Daily BOE 118 29 14
Total Net Acres 9,880 9,640 5,686
Net Acres Producing (% of Total) 801(8.1%) 535 (5.6%) 48 (0.8%)
"Drilling" = Preparing to Drill, Drilling, Awaiting Completion, Completing

Operational Update

As of November 11, 2011, Ante5 participated in a total of 37 gross (1.02 net) Bakken & Three Forks wells that are producing or in the process of drilling or completion. Permitting activity on Ante5's acreage continues at a high rate.

Producing Wells: The following table sets forth all 22 of the producing Bakken and Three Forks wells in which Ante5 holds a participating interest as of November 11, 2011.

Well Name Operator County WI IP (BOPD)* BOP Average** Days***
Christensen 159-102-8-5-1H Newfield Williams, ND 29.99% 562 368 36
Weyrauch 15-11H Hess Williams, ND 8.28% TBD TBD TBD
A.Tufto 18-19 #1-H Brigham Williams, ND 7.15% 2,541 809 32
Love 11-2 #1H Samson Williams, ND 6.25% 543 TBD TBD
Burke 24-08H EOG Mountrail, ND 1.56% 673 290 27
Revolver 1-35H Slawson Mountrail, ND 1.56% 1,770 856 27
White 157-100-17B-20-1H Petro-Hunt Williams, ND 1.56% TBD TBD TBD
Marshall 1-13H Continental Dunn, ND 1.17% 844 586 35
Clearwater 1-24-25H 1 Hunt Mountrail, ND 1.04% TBD TBD TBD
Kannegeiter 160-90-17-P-1H Occidental Burke, ND 1.04% TBD TBD TBD
Olson 15-36H Hess Williams, ND 1.04% 1,135 516 28
Opedahl 21x-11 XTO Williams, ND 0.98% TBD TBD TBD
Talkington 21-30TFH Whiting Stark, ND 0.80% TBD TBD TBD
En-Charles Wood-157-94-1720H-1 Hess Mountrail, ND 0.64% 1,002 TBD TBD
EN-Will Trust B-157-94-2635H-1 Hess Mountrail, ND 0.48% 402 504 20
EN-Will Trust B-157-94-2635H-2 Hess Mountrail, ND 0.48% 512 510 33
EN-Will Trust B-157-94-2635H-3 Hess Mountrail, ND 0.48% 372 377 30
Hodenfield 15-23H Hess Williams, ND 0.47% 2,042 594 33
Go-Soine A-156-97-3229H-1 Hess Williams, ND 0.39% TBD TBD TBD
Tempe #1-29H Continental Divide, ND 0.39% TBD TBD TBD
Marcy 1-24H Continental Williams, ND 0.31% TBD TBD TBD
Scanlan 3-5H North Plains Williams, ND 0.16% 819 828 23
* "IP BOPD" means the initial production ("IP") rate expressed in barrels of oil per day. The IP rate is the 24-hour "Peak Production Rate." Peak Production Rates may be established following the initial day of production, depending on operator design or well flow-back profiles. The IP rate may be estimated based on other third party estimates or limited data available at this time. The IP BOPD is computed using crude oil production only, without taking into consideration any associated natural gas production.          
** "BOPD Average" means the average barrels of oil per day during the applicable initial days of production.          
*** "DAYS" means number of initial days of production used to calculate the "BOPD AVG" from the commencement of established production. The "DAYS" used to calculate the "BOPD AVG" does not include days during which a well is shut-in for weather or maintenance purposes.          

"Drilling" Wells: The following table sets forth all 15 of Ante5's Bakken and Three Forks wells that are either preparing to drill, drilling, awaiting completion or completing as of November 11, 2011.

Well Name Operator County WI
Stromme Family Trust 157-101-11C-2-1H Petro-Hunt Williams, ND 7.91%
Pasternak Trust 157-100-18A-19-1H Petro-Hunt Williams, ND 7.82%
Sidonia 15-1102H Petro-Hunt Mountrail, ND 6.28%
Erickson 41-25 SWH Denbury McKenzie, ND 5.00%
En-Jorstad-157-94-0904H-1 Hess Mountrail, ND 1.19%
Miller 157-101-12C-1-1H Petro-Hunt Williams, ND 1.13%
Vanville 22-2623H EOG Burke, ND 1.04%
Vanville 21-2635H EOG Burke, ND 1.04%
Berger 156-100-7-6-1H Liberty Williams, ND 1.01%
Probe 1-19-30HMB Slawson Mountrail, ND 0.77%
Lindy 156-100-10-3-1H Newfield Williams, ND 0.67%
Pankowski 4-6H North Plains Williams, ND 0.64%
Clearwater 1-26-23H 1 Hunt Mountrail, ND 0.69%
Setterlund 159-94-28B-33-1H Petro-Hunt Burke, ND 0.20%
Helstad 158-99-34D-27-1H Petro-Hunt Williams, ND 0.14%

Non-GAAP Financial Measures

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:

Ante5, Inc.
Reconciliation of Adjusted EBITDA
  Three Months Ended Nine Months Ended
  September 30, September 30, 
  2011 2010 2011 2010
Net Loss  $ (338,212)  $ (8,826)  $ (804,449)  $ (355,459)
Add Back:        
Interest Expense 38,233 2,889 63,723 11,429
Income Tax Provision (48,300) -- (380,500) --
Depreciation, Depletion, Amortization & Accretion 330,232 743 440,844 1,362
Accretion of Abandonment Liability 154 -- 420 --
Share Based Compensation 223,217 -- 535,479 58,425
Adjusted EBITDA  $ 205,324  $ (5,194)  $ (144,483)  $ (284,243)

Ante5 Oil & Gas

Ante5, Inc. is an oil and gas exploration and production company based in Minnetonka, Minnesota. Ante5's focus is the Williston Basin Bakken and Three Forks trends in North Dakota and Montana.  Ante5 controls, or has under contract, approximately 10,515 net mineral acres in North Dakota. More information about Ante5 Oil & Gas can be found at

If you would like to receive timely information on Ante5 Oil & Gas when it hits the newswire, you may sign up for Ante5 email news alerts at:


This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions and anticipated well production and acreage acquisition are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements include the following: 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, 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.  Additional information on these and other factors that could affect the Company's operations or financial results are included in the company's reports on file with the Securities and Exchange Commission. 

We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and contingencies. These forward-looking statements speak only as of the date of this press release. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in the Company's expectations.

  September 30, December 31,
  2011 2010
Current assets:    
Cash and cash equivalents $3,212,444 $8,577,610
Accounts receivable 978,051 15,840
Prepaid expenses 121,655 8,431
Current portion of contingent consideration receivable 250,000 287,000
Total current assets 4,562,150 8,888,881
Contingent consideration receivable, net of    
current portion and allowance of $878,650 6,062,103 6,185,000
Property and equipment:    
Oil and natural gas properties, full cost method of accounting    
Proved properties 7,780,914 -- 
Unproved properties 13,321,935 4,343,389
Other property and equipment 62,360 15,706
Total property and equipment 21,165,209 4,359,095
Less, accumulated depreciation, amortization and depletion (439,924) (13,725)
Total property and equipment, net 20,725,285 4,345,370
Total assets $31,349,538 $19,419,251
Current liabilities:    
Accounts payable $2,398,693 $325,584
Accounts payable, related parties 6,985 76,777
Accrued expenses --  47,267
Royalties payable 315,606 323,600
Current portion of deferred tax liability 80,400 119,400
Total current liabilities 2,801,684 892,628
Asset retirement obligations 3,667 -- 
Deferred tax liability, net of current portion 2,232,100 2,573,600
Total liabilities 5,037,451 3,466,228
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,    
47,402,965 and 37,303,614 shares issued and outstanding at    
September 30, 2011 and December 31, 2010, respectively 47,403 37,304
Additional paid-in capital 27,807,637 16,654,223
Accumulated (deficit) (1,542,953) (738,504)
Total stockholders' equity 26,312,087 15,953,023
Total liabilities and stockholders' equity $31,349,538 $19,419,251
  For the Three Months For the Nine Months
  Ended September 30, Ended September 30,
  2011 2010 2011 2010
Oil and gas sales $900,511  --  $1,248,041 -- 
Operating expenses:        
Production expenses 362,560 --  379,535 -- 
Production taxes 101,936 --  138,939 -- 
General and administrative 474,570 148,064 1,332,556 487,594
Depletion of oil and gas properties 327,363 --  431,893 -- 
Accretion of discount on asset retirement obligations 154 --  420 -- 
Depreciation and amortization 2,869 743 8,951 1,362
Total operating expenses 1,269,452 148,807 2,292,294 488,956
Net operating loss (368,941) (148,807) (1,044,253) (488,956)
Other income (expense):        
Interest income 252 1,988 1,664 4,044
Interest (expense) (38,233) (2,889) (63,723) (11,429)
Other income 20,410 140,882 20,410 140,882
Loss on disposal of equipment --  --  (1,061) -- 
Indemnification expenses --  --  (97,986) -- 
Total other income (expense) (17,571) 139,981 (140,696) 133,497
Loss before provision for income taxes (386,512) (8,826) (1,184,949) (355,459)
Provision for income taxes 48,300 --  380,500 -- 
Net (loss)  $ (338,212)  $ (8,826)  $ (804,449)  $ (355,459)
Weighted average number of common shares        
outstanding - basic and fully diluted 45,661,345 21,292,333 41,364,318 21,292,333
Net (loss) per share - basic and fully diluted  $ (0.01) --  $ (0.02)  $ (0.02)
  For the Nine Months Ended
September 30, 2011
From Inception (April 9, 2010) to
September 30, 2010
Net (loss)  $ (804,449)  $ (355,459)
Adjustments to reconcile net (loss)    
to net cash used in operating activities:    
Depletion of oil and gas properties 431,893 --
Depreciation and amortization 8,951 1,362
Accretion of discount on asset retirement obligations 420 --
Loss on disposal of equipment 1,061 --
Loss on sale of debt securities -- 8,363
Common stock granted for services 43,120 --
Common stock warrants granted 46,264 --
Common stock warrants granted, related parties 8,164 --
Common stock options granted, related parties 492,359 58,425
Decrease (increase) in assets:    
Accounts receivable (962,211) (11,633)
Prepaid expenses (113,224) (15,234)
Contingent consideration receivable 159,897 141,365
Increase (decrease) in liabilities:    
Accounts payable 187,100 (23,378)
Accounts payable, related parties (69,792) --
Accrued expenses (47,267) 29,546
Royalties payable (7,994) (9,294)
Deferred tax liability (380,500) --
Net cash used in operating activities (1,006,208) (175,937)
Cash acquired in spin-off from Ante4, Inc. -- 258,712
Proceeds from sale of short term investments -- 3,700,000
Purchases and increases in oil and gas properties (9,929,935) --
Purchases of other property and equipment (62,360) --
Net cash used in investing activities (9,992,295) 3,958,712
Principal payments on line of credit -- (2,437,336)
Proceeds from the sale of common stock, net of $526,444 of offering costs 5,616,057 --
Proceeds from the exercise of common stock options 17,280 --
Net cash provided by (used in) financing activities 5,633,337 (2,437,336)
NET CHANGE IN CASH (5,365,166) 1,345,439
CASH AT END OF PERIOD  $ 3,212,444  $ 1,345,439
Interest paid  $ 9,295  $ 6,854
Income taxes paid  $ --  $ --
Purchase of oil and gas properties paid subsequent to period-end  $ 1,886,009  $ --
Purchase of oil and gas properties through issuance of common stock  $ 4,940,269  $ --
Capitalized asset retirement obligations  $ 3,247  $ --
CONTACT: Investor Relations Contact:
         The WSR Group
         Gerald Kieft / Sean Marconi
         (772) 219-7525
Source: Ante5, Inc.