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.”
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.
: 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.
: 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.
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:
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.
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 .
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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