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Black Ridge Oil & Gas Reports Record Revenue, Production and Adjusted EBITDA for the Quarter Ending September 30, 2012

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Production Growth of 157% Over Q3 2011 and 58% Over Q2 2012

MINNETONKA, MN -- (MARKETWIRE) -- 11/14/12 -- Black Ridge Oil & Gas, Inc. ("the Company", formerly known as Ante5, Inc.) (OTCQB: ANFC) today announced results for the three months ended September 30, 2012. During this period, the Company reported revenues of $2,285,731 from sales of crude oil and natural gas, production volume of 27,927 Barrels of Oil Equivalent (BOE), which equated to 304 BOE per day (BOEPD), and adjusted EBITDA of $6,796,725, including $5,744,643 related to net settlement income. Excluding net settlement income, adjusted EBITDA was $1,052,082. The revenue, production, and adjusted EBITDA are all record high levels for the company.

Ken DeCubellis, Black Ridge's Chief Executive Officer, commented, "We are proud to report our Third Quarter 2012 results, which were the best in the history of the Company. We continue to develop our Bakken and Three Forks leaseholds to record levels. Our balance sheet and cash position are strong. We have the funding necessary to execute our current leasehold acquisition and development plans through 2013 without raising additional capital."

Third Quarter 2012 Highlights

  • Quarterly revenue of $2,285,731, an increase of 154% compared to the three month period ended September 30, 2011, and a 66% increase compared to the three month period ended June 30, 2012.
  • Quarterly production of 27,927 BOE, 304 BOEPD. The 304 BOEPD is an increase of 157% compared to the three month period ended September 30, 2011, and a 58% increase compared to the prior three month period ended June 30, 2012.
  • 97% of total production was from oil.
  • Adjusted EBITDA from ongoing oil and gas operations of $1,052,082 in the quarter ended September 30, 2012, an increase of $847,010, or 413%, from Adjusted EBITDA of $205,072 in the quarter ended September 30, 2011, and an increase of $514,311, or 96%, from Adjusted EBITDA of $537,771 in the three month period ended June 30, 2012.
  • On September 5, 2012, the Company amended its Secured Revolving Credit Agreement with Dougherty Funding LLC, increasing the maximum available from $10,000,000 to $20,000,000 of which $16,500,000 is currently available.
  • As of September 30, 2012, the Company controlled approximately 11,159 net mineral acres in the Bakken and Three Forks formations. In addition, the Company owned working interests in 63 gross wells representing 2.26 net wells that are preparing to drill, drilling, awaiting completion, complete or producing.

As of November 12, 2012, the Company controlled approximately 11,449 net mineral acres in the Bakken and Three Forks formations. In addition, the Company owned working interests in 69 gross wells representing 2.41 net wells that are preparing to drill, drilling, awaiting completion, complete or producing, and also had 14 gross wells representing 0.37 net wells that are permitted.

"The strength of our business model is being demonstrated in our strong operational and financial results. We are well positioned to continue converting our leases into production and cash flow as we further develop our asset base in North America's premier unconventional oil play," added DeCubellis.

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 September 30, 2012.

Well Operator Location WI(1) IP Rate(2)
Christensen 159-102-8-5-1H Newfield Williams, ND 0.300 562
Fairbanks 1-20H Continental Williams, ND 0.287 339
Go-State 157-97-2116H-1 Hess Williams, ND 0.130 558
Pasternak #1-32-29HC G3 Operating Williams, ND 0.125 370
Peggy Schettler 14-33H Marathon Dunn, ND 0.125 TBD
Colfax 1X-19H Continental Williams, ND 0.106 747
Go-Hill 158-98-3427H-1 Hess Williams, ND 0.102 508
Dahl Federal 2-15H (3) SM-energy McKenzie, ND 0.087 791
Weyrauch 15-11H Hess Williams, ND 0.083 824
Lowe 18-19-158N-99W Crescent Point Williams, ND 0.081 24
Stromme Family Trust 157-101-11C-2-1H Petro-Hunt Williams, ND 0.079 182
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
King 157-101-3B-10-1H Petro-Hunt Williams, ND 0.068 490
Sidonia 15-1102H EOG Mountrail, ND 0.063 510
Go-Durning 157-97-2932H-1 Hess Williams, ND 0.063 TBD
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
Revolver 2-35H Slawson Mountrail, ND 0.016 366
White 157-100-17B-20-1H Petro-Hunt Williams, ND 0.016 411
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 1,091
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
Talkington 11-30PH 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 0.007 599
Pankowski 4-6H Kodiak Williams, ND 0.007 358
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
Washburne 1-22H Continental Williams, ND 0.003 746
Marcy 1-24H Continental Williams, ND 0.003 472
Marcy 2-24H Continental Williams, ND 0.003 466
Marcy 3-24H Continental Williams, ND 0.003 240
Hokanson 157-99-1A-12-1H Petro-Hunt Williams, ND 0.003 TBD
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 0.001 627
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 the operator is holding the funds related to the company's Working Interest pending resolution of third party litigation 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 September 30, 2012.

Well Location Operator WI(1)
Blikre 158-94-13B-24-1H Mountrail, ND Petro-Hunt 0.016
Jackman 156-100-11-2-1H Williams, ND Liberty 0.015
Redmond 27-2932H Mountrail, ND EOG 0.012
Redmond 28-2917H Mountrail, ND EOG 0.012
Homer 1-14H Williams, ND Continental 0.002
Opsal 158-99-26A-35-1H Williams, ND Petro-Hunt 0.001
(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 Net Income (Loss) and Adjusted EBITDA
In addition to reporting net income (loss) as defined under GAAP, we also present Adjusted Net Income (Loss) and Adjusted EBITDA. We define Adjusted Net Income (Loss) as net income excluding settlement income, net of settlement expenses, and tax. 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 Net Income (Loss) and Adjusted EBITDA do not represent, and should not be considered alternatives to GAAP measurements. We believe these measures are useful in evaluating our fundamental core operating performance. Specifically, we believe the non-GAAP Adjusted Net Income (Loss) and Adjusted EBITDA results provide useful information to both management and investors by excluding certain income and expenses that our management believes are not indicative of our core operating results. Although we use Adjusted Net Income (Loss) and 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 Net Income (Loss) and Adjusted EBITDA to Net Income, GAAP, are included below:

Black Ridge Oil & Gas, Inc.
Reconciliation of Adjusted Net Income (Loss)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2012 2011 2012 2011
Net Income (Loss) $ 3,355,510 $ (338,212 ) $ 1,977,208 $ (804,449 )
Subtract:
Settlement Income, Net of Tax (a) (3,384,643 ) - (3,384,643 ) -
Adjusted Net Income (Loss) $ (29,133 ) $ (338,212 ) $ (1,407,435 ) $ (804,449 )
Weighted average common shares outstanding - basic 47,979,990 45,661,345 47,725,172 41,364,318
Weighted average common shares outstanding - fully diluted 48,583,451 45,661,345 48,049,669 41,364,318
Net income (loss) per common share - basic $ 0.07 $ (0.01 ) $ 0.04 $ (0.02 )
Subtract:
Change due to Settlement Income, Net of Tax (0.07 ) - (0.07 ) -
Adjusted Net Income (loss) per common share - basic $ - $ (0.01 ) $ (0.03 ) $ (0.02 )
Net income (loss) per common share - fully diluted $ 0.07 $ (0.01 ) $ 0.04 $ (0.02 )
Subtract:
Change due to Settlement Income, Net of Tax (0.07 ) - (0.07 ) -
Adjusted Net Income (Loss) per common share - fully diluted $ - $ (0.01 ) $ (0.03 ) $ (0.02 )
(a) Adjusted to reflect tax expense, computed based on our effective tax rate of approximately 41%, of $2,360,000 for the three and nine months ended September 30, 2012.
Black Ridge Oil & Gas, Inc.
Reconciliation of Adjusted EBITDA
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2012 2011 2012 2011
Net Income (loss) $ 3,355,510 $ (338,212 ) $ 1,977,208 $ (804,449 )
Add Back:
Interest Expense, net, excluding amortization of warrant based financing costs 275,144 5,325 496,282 7,631
Income Tax Provision 2,012,195 (48,300 ) 1,630,630 (380,500 )
Depreciation, Depletion, and Amortization 924,949 330,232 1,752,148 440,844
Accretion of Abandonment Liability 1,339 154 3,344 420
Common stock issued for terminated oil and gas acquisition - - 438,539 -
Share Based Compensation 227,588 255,873 1,006,538 589,907
Adjusted EBITDA $ 6,796,725 $ 205,072 $ 7,304,689 $ (146,147 )

Our Adjusted EBITDA for the three and nine month periods ended September 30, 2012 includes settlement income, net of settlement expenses, of $5,744,643.

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 11,159 net acres prospective for Bakken and/or Three Forks development. 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
September 30, December 31,
2012 2011
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 1,775,098 $ 1,401,141
Accounts receivable, including $11,000,000 of settlement receivables in 2012 13,242,116 673,003
Prepaid expenses 25,499 40,599
Current portion of contingent consideration receivable - 2,309,752
Total current assets 15,042,713 4,424,495
Property and equipment:
Oil and natural gas properties, full cost method of accounting
Proved properties 30,228,396 10,867,443
Unproved properties 10,415,317 13,236,057
Other property and equipment 85,917 78,489
Total property and equipment 40,729,630 24,181,989
Less, accumulated depreciation, amortization and depletion (5,077,645 ) (3,325,497 )
Total property and equipment, net 35,651,985 20,856,492
Contingent consideration receivable, net of current portion and allowance of $-0- and $878,650 at September 30, 2012 and December 30, 2011, respectively - 3,698,850
Long-term accounts receivable, settlement 2,500,000 -
Debt issuance costs 674,983 52,049
Total other assets 3,174,983 3,750,899
Total assets $ 53,869,681 $ 29,031,886
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, including $1,840,000 of settlement payables in 2012 $ 10,035,054 $ 2,820,936
Accounts payable, related parties, including $433,079 of settlement payables in 2012 437,409 9,206
Accrued expenses 82,352 -
Royalties payable, related party - 300,431
Total current liabilities 10,554,815 3,130,573
Long-term accounts payable, settlement 160,000 -
Long-term accounts payable, related party, settlement 117,000 -
Asset retirement obligations 57,538 3,900
Revolving credit facilities 11,850,000 -
Deferred tax liability 2,642,725 1,012,095
Total liabilities 25,382,078 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 and 47,402,965 shares issued and outstanding, respectively 47,980 47,403
Additional paid-in capital 29,683,174 28,058,674
Accumulated (deficit) (1,243,551 ) (3,220,759 )
Total stockholders' equity 28,487,603 24,885,318
Total liabilities and stockholders' equity $ 53,869,681 $ 29,031,886
BLACK RIDGE OIL & GAS, INC. (Formerly Ante5, Inc.)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2012 2011 2012 2011
Oil and gas sales $ 2,285,731 $ 900,511 $ 4,332,461 $ 1,248,041
Operating expenses:
Production expenses 161,793 362,560 427,676 379,535
Production taxes 292,925 101,936 526,735 138,939
General and administrative 1,003,743 474,570 2,955,517 1,332,556
Depletion of oil and gas properties 919,138 327,363 1,733,753 431,893
Accretion of discount on asset retirement obligations 1,339 154 3,344 420
Depreciation and amortization 5,811 2,869 18,395 8,951
Total operating expenses 2,384,749 1,269,452 5,665,420 2,292,294
Net operating (loss) (99,018 ) (368,941 ) (1,332,959 ) (1,044,253 )
Other income (expense):
Interest income 209 252 451 1,664
Interest (expense) (278,129 ) (38,233 ) (804,297 ) (63,723 )
Other income - 20,410 - 20,410
Settlement income 8,020,759 - 8,020,759 -
Settlement expenses (2,276,116 ) - (2,276,116 ) -
Loss on disposal of equipment - - - (1,061 )
Indemnification expenses - - - (97,986 )
Total other income (expense) 5,466,723 (17,571 ) 4,940,797 (140,696 )
Income (loss) before provision for income taxes 5,367,705 (386,512 ) 3,607,838 (1,184,949 )
Provision for income taxes (2,012,195 ) 48,300 (1,630,630 ) 380,500
Net income (loss) $ 3,355,510 $ (338,212 ) $ 1,977,208 $ (804,449 )
Weighted average common shares outstanding - basic 47,979,990 45,661,345 47,725,172 41,364,318
Weighted average common shares outstanding - fully diluted 48,583,451 45,661,345 48,049,669 41,364,318
Net income (loss) per common share - basic $ 0.07 $ (0.01 ) $ 0.04 $ (0.02 )
Net income (loss) per common share - fully diluted $ 0.07 $ (0.01 ) $ 0.04 $ (0.02 )
BLACK RIDGE OIL & GAS, INC. (Formerly Ante5, Inc.)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months
Ended September 30,
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 1,977,208 $ (804,449 )
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depletion of oil and gas properties 1,733,753 431,893
Depreciation and amortization 18,395 8,951
Amortization of debt issuance costs 148,299 9,295
Accretion of discount on asset retirement obligations 3,344 420
Loss on disposal of equipment - 1,061
Common stock issued for terminated oil and gas acquisition 438,539 -
Common stock issued for services - 43,120
Common stock warrants 261,845 46,264
Common stock warrants, related parties 45,719 8,164
Common stock options, related parties 698,974 492,359
Decrease (increase) in assets:
Accounts receivable, including ($13,500,000) of settlement receivables in 2012 (15,069,113 ) (962,211 )
Prepaid expenses 15,100 (55,598 )
Contingent consideration receivable 6,008,602 159,897
Increase (decrease) in liabilities:
Accounts payable, including $2,000,000 of settlement payables in 2012 2,096,034 187,100
Accounts payable, related parties, including $550,079 of settlement payables 545,203 (69,792 )
Accrued expenses 82,352 (47,267 )
Royalties payable, related party (300,431 ) (7,994 )
Deferred tax liability 1,630,630 (380,500 )
Net cash provided by (used in) operating activities 334,453 (939,287 )
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of oil and gas properties 993,449 -
Purchases of oil and gas properties and developmental capital expenditures (12,025,284 ) (9,929,935 )
Purchases of other property and equipment (7,428 ) (62,360 )
Net cash used in investing activities (11,039,263 ) (9,992,295 )
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from revolving credit facilities 13,850,000 -
Repayments on revolving credit facilities (2,000,000 ) -
Proceeds from the sale of common stock, net of $526,444 of offering costs - 5,616,057
Debt issuance costs paid (771,233 ) (66,921 )
Proceeds from the exercise of common stock options - 17,280
Net cash provided by financing activities 11,078,767 5,566,416
NET CHANGE IN CASH AND CASH EQUIVALENTS 373,957 (5,365,166 )
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,401,141 8,577,610
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,775,098 $ 3,212,444
SUPPLEMENTAL INFORMATION:
Interest paid $ 266,082 $ 9,295
Income taxes paid $ - $ -
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchase of oil and gas properties paid subsequent to period-end $ 7,880,234 $ 1,886,009
Purchase of oil and gas properties through issuance of common stock $ - $ 4,940,269
Capitalized asset retirement costs $ 50,294 $ 3,247
Liabilities relieved to additional paid in capital $ 180,000 $ -

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.

Contact:

Black Ridge Oil & Gas Investor Relations:
Gerald Kieft
WSR Communications
772-219-7525
Email Contact
http://wsrcommunications.ir.stockpr.com/blackridgeoil/overview