2012-11-14 16:19:55 -
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.
IP
Well Operator Location WI(1) 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:
###PRECONTENT2###
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 :
www.blackridgeoil.com/ .
Make sure you are first to receive timely information on Black Ridge Oil & Gas when it hits the newswire. Sign up for Black Ridge's email news alert system today at http://ir.stockpr.com/blackridgeoil/email-alerts :
ir.stockpr.com/blackridgeoil/email-alerts
###PRECONTENT3###
###PRECONTENT4###
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 :
www2.marketwire.com/mw/emailprcntct?id=8D5384F5CA2B9CA6
http://wsrcommunications.ir.stockpr.com/blackridgeoil/overview :
wsrcommunications.ir.stockpr.com/blackridgeoil/overview 
