Ante5, Inc. (OTCBB:ANFC) today announced record oil and gas
production for the second quarter ended June 30, 2011. During the
quarter ended June 30, 2011, Ante5 reported revenues of $250,590.
This represents an increase of 159% from $96,940 in the first
quarter ending March 31, 2011. The increase in revenue is due to
increased production from Ante5's 11 gross (0.45 net) producing
Bakken and Three Forks wells as of June 30, 2011.
SECOND QUARTER HIGHLIGHTS
- Despite the fact that oil production and the pace of
development were negatively affected by heavy rain, flooding and
road restrictions during the second quarter of 2011 in North
Dakota, Ante5 produced record financial and production
results.
- Quarterly revenue of $250,590, up 159% over the quarter ended
March 31, 2011 and up from zero revenue in the quarter ended
December 31, 2010.
- Quarterly oil production of 2,606 BOE, up 108% from 1,254 BOE
in the quarter ended March 31, 2011 and up from zero BOE in the
quarter ended December 31, 2010.
- Acquired 3,953 net acres during the quarter targeting North
Dakota's Bakken and Three Forks formations at an average price of
$1,386 per net acre.
- Total of 24 gross (0.70 net) wells targeting the Williston
Basin Bakken and Three Forks formations that are preparing to
drill, drilling, awaiting completion, completing or producing as of
June 30th, 2011.
SUBSEQUENT EVENT
- On July 26, 2011, Ante5 closed on a private placement of $6.1
million, the net proceeds of which the Company intends to use to
continue pursuing acreage acquisition opportunities, fund its
drilling program, and for working capital purposes.
COMMENTS FROM BRADLEY BERMAN, ANTE5 CEO
"Despite weather challenges, we are pleased to announce record
sales and production results for the second quarter of 2011, and
expect the third quarter to continue Ante5's accelerated growth.
Ante5 also closed on a $10 million revolving credit facility during
the second quarter of 2011. While yet undrawn, the facility will
help ensure that we are able to fund our future drilling program
and continue to opportunistically acquire high potential acreage.
Second quarter results prove that Ante5 is able to execute two
important components of the non-operator business model: [1]
accessing capital and [2] acquiring acreage that has a high
likelihood of being developed." PRODUCTION
GROWTH
| Metric |
2nd Quarter 2011 |
1st Quarter 2011 |
% Change |
| Net Production (BOE) |
2,606 |
1,254 |
108% |
| Realized Price / Barrel |
$96.47 |
$81.84 |
18% |
| Average Daily BOE |
29 |
14 |
107% |
| Total Net Acres |
9,640 |
5,687 |
70% |
| Net Acres Producing (% of Total Net
Acres) |
535 (5.6%) |
48 (0.8%) |
1,015% |
OPERATIONAL UPDATE
At the time of this publication, Ante5 participates in 26 gross
wells that are producing, completing, awaiting completion,
drilling, or preparing to drill. Permits on drilling units
containing Ante5 acreage continue to be issued at an accelerated
pace. With North Dakota rig count at an all-time high of 192
(8/11/2011), the Company expects to be participating in over 1 net
Bakken-Three Forks well by the end of 2011.
Producing Wells: The following table
illustrates all producing Bakken and Three Forks wells in which
Ante5 currently holds a participating interest.
| Well Name |
Operator |
County (ND) |
WI |
IP (BOPD)* |
BOPD Average** |
Days*** |
| Christensen 159-102-8-5-1H |
Newfield |
Williams |
29.99% |
TBD |
TBD |
TBD |
| A.Tufto 18-19 #1-H |
Brigham |
Williams |
7.15% |
2,541 |
809 |
32 |
| Burke 24-08H |
EOG |
Mountrail |
1.56% |
673 |
290 |
27 |
| Revolver 1-35H |
Slawson |
Mountrail |
1.56% |
1,770 |
856 |
27 |
| Marshall 1-13H |
Continental |
Dunn |
1.17% |
TBD |
TBD |
TBD |
| Clearwater 1-24-25H 1 |
Hunt |
Mountrail |
1.04% |
TBD |
TBD |
TBD |
| Olson 15-36H |
Hess |
Williams |
1.04% |
1,135 |
516 |
28 |
| Talkington 21-30TFH |
Whiting |
Stark |
0.80% |
TBD |
TBD |
TBD |
| EN-Will Trust B-157-94-2635H-1 |
Hess |
Mountrail |
0.48% |
402 |
504 |
20 |
| EN-Will Trust B-157-94-2635H-2 |
Hess |
Mountrail |
0.48% |
412 |
410 |
33 |
| EN-Will Trust B-157-94-2635H-3 |
Hess |
Mountrail |
0.48% |
372 |
377 |
30 |
| Hodenfield 15-23H |
Hess |
Williams |
0.47% |
2,042 |
594 |
33 |
| Scanlan 3-5H |
North Plains |
Williams |
0.16% |
819 |
828 |
23 |
| TBD indicates that well is on Confidential
Status |
46.38% |
|
|
|
* "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
illustrates all Bakken & Three Forks wells in which Ante5 holds
a participating interest that are currently preparing to drill,
drilling, awaiting completion, and completing.
| Well Name |
Operator |
County (ND) |
WI |
| Weyrauch 15-11H |
Hess |
Williams |
8.28% |
| Love 11-2 #1H |
Samson |
Williams |
6.25% |
| Probe 1-19-30HMB |
Slawson |
Mountrail |
2.34% |
| White 157-100-17B-20-1H |
Petro-Hunt |
Williams |
1.56% |
| Kannegeiter 160-90-17-P-1H |
OXY |
Burke |
1.04% |
| Vanville 22-2623H |
EOG |
Burke |
1.04% |
| Opedahl 21x-11 |
XTO |
Williams |
0.98% |
| Pankowski 4-6H |
North Plains |
Williams |
0.66% |
| En-Charles Wood-157-94-1720H-1 |
Hess |
Mountrail |
0.64% |
| Tempe #1-29H |
Continental |
Divide |
0.39% |
| Go-Soine A-156-97-3229H-1 |
Hess |
Williams |
0.39% |
| Marcy 1-24H |
Continental |
Williams |
0.31% |
| Helstad 158-99-34D-27-1H |
Petro-Hunt |
Williams |
0.14% |
| |
|
|
24.02% |
ACREAGE ACQUISITION UPDATE
Since June 30, 2011, Ante5 has entered into transactions that
when closed will add to the Company's acreage portfolio
approximately 636 additional net acres located primarily in North
Dakota's Williams, Mountrail and Dunn counties. Upon the close
of these transactions, Ante5 will control over 10,276 net mineral
acres targeting North Dakota's Williston Basin Bakken and Three
Forks play.
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 10,276 net
mineral acres in North Dakota. More information about Ante5 Oil
& Gas can be found at www.ante5oil.com.
FORWARD LOOKING STATEMENTS
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.
| Ante5,
Inc. |
| Condensed Balance
Sheets |
| |
|
|
| |
June 30, |
December 31, |
| |
2011 |
2010 |
| ASSETS |
(Unaudited) |
|
| |
|
|
| Current assets: |
|
|
| Cash and cash equivalents |
$2,236,014 |
$8,577,610 |
| Accounts receivable |
258,451 |
15,840 |
| Prepaid expenses |
167,450 |
8,431 |
| Current portion of contingent
consideration receivable |
250,000 |
287,000 |
| Total current assets |
2,911,915 |
8,888,881 |
| |
|
|
| Contingent consideration receivable, net of
current portion and allowance of $878,650 |
6,136,657 |
6,185,000 |
| |
|
|
| Property and equipment: |
|
|
| Oil and natural gas properties,
full cost method of accounting |
|
|
| Proved properties |
5,517,373 |
-- |
| Unproved properties |
13,132,727 |
4,343,389 |
| Property and equipment |
40,533 |
15,706 |
| Total property and equipment |
18,690,633 |
4,359,095 |
| Less, accumulated depreciation, amortization
and depletion |
(109,692) |
(13,725) |
| Total property and equipment, net |
18,580,941 |
4,345,370 |
| |
|
|
| Total assets |
$27,629,513 |
$19,419,251 |
| |
|
|
| |
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
| |
|
|
| Current liabilities: |
|
|
| Accounts payable |
$3,946,687 |
$325,584 |
| Accounts payable, related parties |
222,716 |
76,777 |
| Accrued expenses |
-- |
47,267 |
| Royalties payable |
319,281 |
323,600 |
| Current portion of deferred tax
liability |
81,200 |
119,400 |
| Total current liabilities |
4,569,884 |
892,628 |
| |
|
|
| Asset retirement obligations |
3,340 |
-- |
| |
|
|
| Deferred tax liability, net of current
portion |
2,279,600 |
2,573,600 |
| |
|
|
| Total liabilities |
6,852,824 |
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, 41,204,465 and 37,303,614 shares
issued and outstanding at June 30, 2011 and December 31, 2010,
respectively |
41,204 |
37,304 |
| Additional paid-in capital |
21,940,226 |
16,654,223 |
| Accumulated (deficit) |
(1,204,741) |
(738,504) |
| Total stockholders' equity |
20,776,689 |
15,953,023 |
| |
|
|
| Total liabilities and stockholders'
equity |
$27,629,513 |
$19,419,251 |
| Ante5,
Inc. |
| Condensed Income
Statement |
| |
|
|
| |
For the Three |
For the Six |
| |
Months Ended |
Months Ended |
| |
June 30, 2011 |
June 30, 2011 |
| |
|
|
| Oil and gas sales |
$250,590 |
$347,530 |
| |
|
|
| Operating expenses: |
|
|
| Production expenses |
11,352 |
16,975 |
| Production taxes |
27,573 |
37,003 |
| General and administrative |
489,109 |
857,986 |
| Depletion of oil and gas properties |
68,382 |
104,530 |
| Accretion of discount on asset retirement
obligations |
146 |
266 |
| Depreciation and amortization |
2,960 |
6,082 |
| Total operating expenses |
599,522 |
1,022,842 |
| |
|
|
| Net operating loss |
(348,932) |
(675,312) |
| |
|
|
| Other income (expense): |
|
|
| Interest income |
256 |
1,412 |
| Interest (expense) |
(25,490) |
(25,490) |
| Loss on disposal of equipment |
(1,061) |
(1,061) |
| Indemnification expenses |
(97,986) |
(97,986) |
| Total other income (expense) |
(124,281) |
(123,125) |
| |
|
|
| Loss before provision for income taxes |
(473,213) |
(798,437) |
| |
|
|
| Provision for income taxes |
57,900 |
332,200 |
| |
|
|
| Net (loss) |
$(415,313) |
$(466,237) |
| |
|
|
| Weighted average number of common shares
outstanding - basic and fully diluted |
40,505,760 |
39,180,194 |
| |
|
|
| Net (loss) per share - basic and fully
diluted |
$(0.01) |
$(0.01) |
| Ante5,
Inc. |
| Condensed Statement of
Cash Flows |
| |
|
|
| |
For the Six |
April 9, 2010 |
| |
Months Ended |
(Inception) to |
| |
June 30, 2011 |
June 30, 2010 |
| CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
| Net (loss) |
$(466,237) |
$(346,633) |
| Adjustments to reconcile net
(loss) to net cash used in operating activities: |
|
| Depletion of oil and gas properties |
104,530 |
-- |
| Depreciation and amortization |
6,082 |
619 |
| Accretion of discount on asset retirement
obligations |
266 |
-- |
| Loss on disposal of equipment |
1,061 |
-- |
| Loss on sale of debt securities |
-- |
8,363 |
| Common stock warrants granted |
18,506 |
-- |
| Common stock warrants granted, related
parties |
3,266 |
-- |
| Common stock options granted, related
parties |
312,262 |
58,425 |
| Decrease (increase) in assets: |
|
|
| Accounts receivable |
(242,611) |
(5,841) |
| Prepaid expenses |
(159,019) |
-- |
| Contingent consideration receivable |
85,343 |
100,210 |
| Increase (decrease) in liabilities: |
|
|
| Accounts payable |
(76,732) |
139,760 |
| Accounts payable, related parties |
145,939 |
-- |
| Accrued expenses |
(47,267) |
13,304 |
| Royalties payable |
(4,319) |
(8,254) |
| Deferred tax liability |
(332,200) |
-- |
| Net cash used in operating
activities |
(651,130) |
(40,047) |
| |
|
|
| CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
| Cash acquired in spin-off from Ante4,
Inc. |
-- |
258,712 |
| Proceeds from sale of short term
investments |
-- |
1,300,000 |
| Purchases and increases in oil and gas
properties |
(5,665,533) |
-- |
| Purchases of property and equipment |
(40,533) |
-- |
| Net cash provided by (used in) investing
activities |
(5,706,066) |
1,558,712 |
| |
|
|
| CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
| Principal payments on line of credit |
-- |
(1,303,933) |
| Proceeds from the exercise of common
stock options |
15,600 |
-- |
| Net cash provided by (used in) financing
activities |
15,600 |
(1,303,933) |
| |
|
|
| NET CHANGE IN CASH |
(6,341,596) |
214,732 |
| CASH AT BEGINNING OF PERIOD |
8,577,610 |
-- |
| CASH AT END OF PERIOD |
$2,236,014 |
$214,732 |
| |
|
|
| |
|
|
| SUPPLEMENTAL INFORMATION: |
|
|
| Interest paid |
$3,718 |
$ -- |
| Income taxes paid |
$ -- |
$ -- |
| |
|
|
| NON-CASH INVESTING AND FINANCING
ACTIVITIES: |
|
|
| Purchase of oil and gas properties paid
subsequent to period-end |
$3,697,835 |
$ -- |
| Purchase of oil and gas properties
through issuance of common stock |
$4,940,269 |
$ -- |
| Capitalized asset retirement
obligations |
$3,074 |
$ -- |
CONTACT: Ante5 Investor Relations:
Gerald Kieft
The WSR Group
772-219-7525
IR@theWSRgroup.com