MINNETONKA, Minn., March 28, 2013 /PRNewswire/ -- Black Ridge
Oil & Gas, Inc. ("the Company") (OTCQB: ANFC), a
well-positioned exploration and production (E&P) company
focused on non-operated Bakken and Three
Forks properties, today announced financial and operating
results for the three months and year ended December 31, 2012.
Company Records Set during 2012
- Proved reserves, prepared by Netherland, Sewell &
Associates, Inc. increased 397% from 2011 to 2.4 million barrel of
oil equivalents (MMBOE)
- Production of 73.9 thousand barrel of oil equivalents (MBOE)
represents 227% increase from 2011
- Total revenues increased 214% to $6.0
million
- Net income (including settlement income) reached $4.9 million compared to a net loss of
$(2.5) million in 2011
- Total cash flow increased to $15.0
million from a use of cash of $(0.3)
million for 2011
Operational Achievements during 2012
- Participated in the completion of 42 gross (1.62 net) wells
with a 100% success rate
- The Company ended the year with production from 66 gross (2.30
net) wells
- Lease Operating Expenses (LOE) decreased by 62% from 2011 to
$8.79/BOE
- Monetized our legacy assets realizing net settlement income of
$11.1 million and collecting
$14.1 million of settlement
proceeds
- Replaced our credit facility with a new Secured Revolving
Credit Agreement with Dougherty Funding LLC, which reduced our
interest rate on borrowings by 9.75 percentage points.
Increased the maximum available from $10.0
million to $20.0 million, of
which $16.5 million is currently
available
Fourth Quarter and Year-End 2012 Results
The Company reported 2012 fourth quarter net income attributable to
common stockholders of $2.9 million,
or $0.06 per basic and diluted common
share, compared to a net loss of $(1.7)
million, or $(0.04) per basic
and diluted common share, for the fourth quarter of 2011.
For the year ended December 31,
2012, the Company reported net income attributable to common
stockholders of $4.9 million
(including settlement income), or $0.10 per basic and diluted common share,
compared to a net loss of $(2.5)
million, or $(0.06) per basic
and diluted common share, for the year ended December 31, 2011.
Ken DeCubellis, Black Ridge's
Chief Executive Officer, said: "Black Ridge had a record year in
2012, and we are off to a great start in 2013. Our strategy of
deploying capital for purchasing and developing near term high IRR
projects have resulted in record earnings for the Company.
Our growing operating cash flow and strong balance sheet position
allows us the flexibility to identify and participate in wells
where we believe Black Ridge and its shareholders will realize the
best and highest returns."
Revenues for the fourth quarter of 2012 were $1.7 million compared to $0.7 million for the fourth quarter of 2011, an
increase of 152%. Production in the fourth quarter of 2012 totaled
20.4 MBOE, representing a 159% increase over the fourth quarter
of 2011.
Revenues for the full-year 2012 totaled $6.0 million compared to $1.9 million for the full-year 2011, an increase
of 214%. This year-over-year increase was primarily due to a
227% increase in oil and gas production in 2012. Production
in 2012 totaled a record 73.9 MBOE, of which 96% was crude
oil. In 2012, the Company's realized commodity prices were
$83.27 per barrel of oil and
$5.39 per MCF for natural gas,
including natural gas liquids. Bakken oil price differentials
improved over the course of 2012. For the fourth quarter of
2012, the Company's realized oil price was 5% per barrel below WTI
as compared to a differential of 16% per barrel in the first
quarter of 2012.
2012 Proved Reserves
As of December 31, 2012, Black
Ridge had estimated proved reserves of 2.4 MMBOE, of which 21% were
classified as proved developed, and 89% was crude oil. These
estimated proved reserves had a pre-tax PV-10 value of $27.9 million. The 2012 reserves estimate
represented a 397% increase over the 0.5 MMBOE of proved reserves
at year-end 2011. The increase in proved reserves equates to
26 times the Company's 2012 production. The Company's estimated
reserves were prepared by its independent reservoir engineering
firm, Netherland, Sewell & Associates, Inc.
As of December 31, 2012, the
Company controlled approximately 12,256 net mineral acres
prospective for the Bakken and Three
Forks formations. During the year the Company
participated in the completion of 42 gross (1.62 net) wells with a
100% success rate. In addition, the Company owned working
interests in 9 gross wells representing 0.36 net wells that are
preparing to drill, drilling, awaiting completion, complete or
producing.
Liquidity Position
During 2012, Black Ridge entered into a new Secured Revolving
Credit Agreement with Dougherty Funding, LLC., and subsequently
increased the facility from $10.0
million to $20.0 million, of
which $16.5 million is currently
available. Black Ridge monetized legacy assets during 2012
realizing net settlement income of $11.1
million and collecting $14.1
million of settlement proceeds. Black Ridge ended the
year with $2.9 million of working
capital and $10.8 million of
remaining availability on the Dougherty credit facility.
DeCubellis said: "Black Ridge is in a position to continue on
our growth trajectory. By remaining focused on our strategy
of actively aggregating high quality, non-operated leases and
converting the opportunities into high return near term development
and production we are excited to expand on our successes in
2013."
2013 Update
The Company expects to see continued reductions in Lease
Operating Expenses (LOE) and anticipates LOE to be approximately
$7.50 per BOE in 2013. Based on
the Company's development and acquisition plans for 2013, which are
currently fully funded, and a forecasted realized crude oil price
of $85 per barrel, we anticipate
achieving sequential quarter over quarter production growth, as
well as annual production, revenue and adjusted EBITDA records from
oil and gas operations.
DeCubellis said: "We continue to see basin-wide improvements in
well economics due to the cost abatements and drilling efficiencies
that began in the second half of 2012. In 2013, through
March 15th, we received 16
Authorizations for Expenditures (AFEs) from our drilling partners
with per-well average drilling and completion costs of
approximately $8.6 million. This is
approximately an 11% reduction from the previous year's
average AFE. We believe 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."
Well 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 December 31,
2012.
Well
|
Location
|
Operator
|
WI(1)
|
Christensen 159-102-8-5-1H
|
Williams,
ND
|
Newfield
|
0.300
|
Fairbanks
1-20H
|
Williams,
ND
|
Continental
|
0.287
|
Go-State
157-97-2116H-1
|
Williams,
ND
|
Hess
|
0.130
|
Pasternak
#1-32-29HC
|
Williams,
ND
|
G3
Operating
|
0.125
|
Peggy
Schettler 14-33H
|
Dunn,
ND
|
Marathon
|
0.125
|
Colfax
1X-19H
|
Williams,
ND
|
Continental
|
0.106
|
Go-Hill
158-98-3427H-1
|
Williams,
ND
|
Hess
|
0.102
|
Dahl
Federal 2-15H (2)
|
McKenzie,
ND
|
SM-energy
|
0.087
|
Lowe
18-19-158N-99W
|
Williams,
ND
|
Crescent
Point
|
0.084
|
Weyrauch
15-11H
|
Williams,
ND
|
Hess
|
0.083
|
Stromme
Family Trust 157-101-11C-2-1H
|
Williams,
ND
|
Petro-Hunt
|
0.079
|
Pasternak
Trust 157-100-18A-19-1H
|
Williams,
ND
|
Petro-Hunt
|
0.078
|
A.Tufto
18-19 #1-H
|
Williams,
ND
|
Brigham
|
0.072
|
King
157-101-3B-10-1H
|
Williams,
ND
|
Petro-Hunt
|
0.068
|
Sidonia
15-1102H
|
Mountrail,
ND
|
EOG
|
0.063
|
Go-Durning
157-97-2932H-1
|
Williams,
ND
|
Hess
|
0.063
|
Love 11-2
#1H
|
Williams,
ND
|
Samson
|
0.062
|
Erickson
41-25 SWH
|
McKenzie,
ND
|
Denbury
|
0.050
|
Austin
17-20-158N-99W
|
Williams,
ND
|
Crescent
Point
|
0.049
|
Paul Peter
Coffee 35HA
|
Dunn,
ND
|
WPX
Energy
|
0.018
|
Paul Peter
Coffee 35HC
|
Dunn,
ND
|
WPX
Energy
|
0.018
|
Paul Peter
Coffee 35HD
|
Dunn,
ND
|
WPX
Energy
|
0.018
|
Blikre
158-94-13B-24-1H
|
Mountrail,
ND
|
Petro-Hunt
|
0.016
|
Burke
24-08H
|
Mountrail,
ND
|
EOG
|
0.016
|
Revolver
1-35H
|
Mountrail,
ND
|
Slawson
|
0.016
|
Revolver
2-35H
|
Mountrail,
ND
|
Slawson
|
0.016
|
White
157-100-17B-20-1H
|
Williams,
ND
|
Petro-Hunt
|
0.016
|
En-Jorstad-157-94-0904H-1
|
Mountrail,
ND
|
Hess
|
0.012
|
Marshall
1-13H
|
Dunn,
ND
|
Continental
|
0.012
|
Miller
157-101-12C-1-1H
|
Williams,
ND
|
Petro-Hunt
|
0.011
|
Vanville
22-2623H
|
Burke,
ND
|
EOG
|
0.010
|
Vanville
21-2635H
|
Burke,
ND
|
EOG
|
0.010
|
Olson
15-36H
|
Williams,
ND
|
Hess
|
0.010
|
Clearwater
1-24-25H 1
|
Mountrail,
ND
|
Hunt
|
0.010
|
Kannegeiter 160-90-17-P-1H
|
Burke,
ND
|
OXY
|
0.010
|
Berger
156-100-7-6-1H
|
Williams,
ND
|
Liberty
|
0.010
|
Opedahl
21x-11
|
Williams,
ND
|
XTO
|
0.010
|
SC-Tami
157-99-0805H-1
|
Williams,
ND
|
Hess
|
0.009
|
Talkington
21-30TFH
|
Stark,
ND
|
Whiting
|
0.008
|
Talkington
41-30PH
|
Stark,
ND
|
Whiting
|
0.008
|
Talkington
11-30PH
|
Stark,
ND
|
Whiting
|
0.008
|
Probe
1-19-30HMB
|
Mountrail,
ND
|
Slawson
|
0.008
|
Clearwater
1-26-23H 1
|
Mountrail,
ND
|
Hunt
|
0.007
|
Lindy
156-100-10-3-1H
|
Williams,
ND
|
Liberty
|
0.007
|
Pankowski
4-6H
|
Williams,
ND
|
Kodiak
|
0.007
|
En-Charles
Wood-157-94-1720H-1
|
Mountrail,
ND
|
Hess
|
0.006
|
Lielan
1-10H
|
Burke,
ND
|
Continental
|
0.006
|
EN-Will
Trust B-157-94-2635H-1
|
Mountrail,
ND
|
Hess
|
0.005
|
EN-Will
Trust B-157-94-2635H-2
|
Mountrail,
ND
|
Hess
|
0.005
|
EN-Will
Trust B-157-94-2635H-3
|
Mountrail,
ND
|
Hess
|
0.005
|
Hodenfield
15-23H
|
Williams,
ND
|
Hess
|
0.005
|
Tempe
#1-29H
|
Divide,
ND
|
Continental
|
0.004
|
Go-Soine
A-156-97-3229H-1
|
Williams,
ND
|
Hess
|
0.004
|
Mathewson
1-30H
|
Williams,
ND
|
Continental
|
0.004
|
Washburne
1-22H
|
Williams,
ND
|
Continental
|
0.003
|
Marcy
1-24H
|
Williams,
ND
|
Continental
|
0.003
|
Marcy
2-24H
|
Williams,
ND
|
Continental
|
0.003
|
Marcy
3-24H
|
Williams,
ND
|
Continental
|
0.003
|
Hokanson
157-99-1A-12-1H
|
Williams,
ND
|
Petro-Hunt
|
0.003
|
Homer
1-14H
|
Williams,
ND
|
Continental
|
0.002
|
Setterlund
159-94-28B-33-1H
|
Burke,
ND
|
Petro-Hunt
|
0.002
|
Orion
Federal 5792 42-20H
|
Mountrail,
ND
|
Oasis
|
0.002
|
Scanlan
3-5H
|
Williams,
ND
|
Kodiak
|
0.002
|
Opsal
158-99-26A-35-1H
|
Williams,
ND
|
Petro-Hunt
|
0.001
|
Helstad
158-99-34D-27-1H
|
Williams,
ND
|
Petro-Hunt
|
0.001
|
Feller
1-22H
|
Williams,
ND
|
Continental
|
0.001
|
Vig
157-99-10D-3-1H
|
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.
|
(2)
|
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 December 31, 2012
Well
|
Location
|
Operator
|
WI(1)
|
Stateline
14-3427H
|
Roosevelt,
MT
|
EOG
|
0.083
|
SCHA 33-34
#2TFH
|
Mountrail,
ND
|
Brigham
|
0.063
|
SCHA 33-34
#3H
|
Mountrail,
ND
|
Brigham
|
0.063
|
SCHA 33-34
#4TFH
|
Mountrail,
ND
|
Brigham
|
0.063
|
Hanson
33-28H
|
Williams,
ND
|
Zenergy
|
0.036
|
Louisville
2-9H
|
McKenzie,
ND
|
Continental
|
0.021
|
Moody
159-94-15A-22-1H
|
Burke,
ND
|
Petro-Hunt
|
0.018
|
Jackman
156-100-11-2-1H
|
Williams,
ND
|
Liberty
|
0.015
|
Helstad
157-99-2A-11-1H
|
Williams,
ND
|
Petro-Hunt
|
0.002
|
|
|
(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:
|
Years
Ended December 31,
|
|
2012
|
|
2011
|
Net income
(loss)
|
$
4,911,410
|
|
$
(2,482,255)
|
Subtract:
|
|
|
|
Settlement income, net of tax (a)
|
(6,355,895)
|
|
-
|
Adjusted
net income (loss)
|
$
(1,444,485)
|
|
$
(2,482,255)
|
|
|
|
|
Weighted
average common shares outstanding - basic
|
47,789,225
|
|
42,882,772
|
Weighted
average common shares outstanding - fully diluted
|
48,061,239
|
|
42,882,772
|
|
|
|
|
Net income
(loss) per common share - basic
|
$
0.10
|
|
$
(0.06)
|
Subtract:
|
|
|
|
Settlement income per common share, net of
tax
|
(0.13)
|
|
-
|
Adjusted
net income (loss) per common share - basic
|
$
(0.03)
|
|
$
(0.06)
|
|
|
|
|
Net income
(loss) per common share - fully diluted
|
$
0.10
|
|
$
(0.06)
|
Subtract:
|
|
|
|
Settlement income per common share, net of
tax
|
(0.13)
|
|
-
|
Adjusted
net income (loss) per common share - fully diluted
|
$
(0.03)
|
|
$
(0.06)
|
|
|
(a)
|
Adjusted
to reflect tax expense, computed based on our effective tax rate of
approximately 43%, of $4,790,000 for the year Ended December 31,
2012.
|
|
Years
Ended December 31,
|
|
2012
|
|
2011
|
Net income
(loss)
|
$
4,911,410
|
|
$
(2,482,255)
|
Add back:
|
|
|
|
Interest expense, net, excluding
amortization
|
|
|
|
of warrant based financing costs
|
873,754
|
|
13,155
|
Income tax provision
|
3,720,601
|
|
(1,680,905)
|
Impairment of oil and gas properties
|
-
|
|
2,392,742
|
Depreciation, depletion, and amortization
|
2,467,688
|
|
933,674
|
Accretion of abandonment liability
|
4,557
|
|
509
|
Common stock issued for terminated oil and gas
acquisition
|
438,539
|
|
-
|
Share-based compensation
|
1,167,561
|
|
840,944
|
|
|
|
|
Adjusted EBITDA
|
$
13,584,110
|
|
$
17,864
|
Our Adjusted EBITDA for the year ended December 31, 2012 includes settlement income, net
of settlement expenses, of $11,145,895.
Financial and Statistical Data Tables
Following are financial highlights for the comparative twelve
month period ended December 31, 2012
and 2011. The following information is based on GAAP reported
earnings, with additional required disclosures included in the
Company's Form 10-K:
BLACK
RIDGE OIL & GAS, INC. (Formerly Ante5, Inc.)
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
1,417,340
|
|
$
1,401,141
|
Accounts
receivable
|
856,233
|
|
673,003
|
Settlement
receivable
|
2,500,000
|
|
-
|
Prepaid
expenses
|
1,397,450
|
|
40,599
|
Current
portion of contingent consideration receivable
|
-
|
|
2,309,752
|
Total
current assets
|
6,171,023
|
|
4,424,495
|
|
|
|
|
Property
and equipment:
|
|
|
|
Oil and
natural gas properties, full cost method of accounting
|
|
|
|
Proved
properties
|
35,248,983
|
|
10,867,443
|
Unproved
properties
|
9,055,513
|
|
13,236,057
|
Other
property and equipment
|
85,917
|
|
78,489
|
Total
property and equipment
|
44,390,413
|
|
24,181,989
|
Less,
accumulated depreciation, amortization, depletion and allowance for
impairment
|
(5,793,184)
|
|
(3,325,497)
|
Total
property and equipment, net
|
38,597,229
|
|
20,856,492
|
|
|
|
|
Contingent
consideration receivable, net of current portion and
allowance
|
|
|
|
of $-0-
and $878,650 at December 31, 2012 and 2011, respectively
|
-
|
|
3,698,850
|
Debt
issuance costs, net
|
657,702
|
|
52,049
|
Total
other assets
|
657,702
|
|
3,750,899
|
|
|
|
|
Total
assets
|
$
45,425,954
|
|
$
29,031,886
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable, including $160,000 and $-0-
|
|
|
|
of
settlement payables, respectively
|
$
3,113,526
|
|
$
2,820,936
|
Accounts
payable, related parties, including $116,234
|
|
|
|
and $-0-
of settlement payables, respectively
|
116,234
|
|
9,206
|
Accrued
expenses
|
61,666
|
|
-
|
Royalties
payable, related party
|
-
|
|
300,431
|
Total
current liabilities
|
3,291,426
|
|
3,130,573
|
|
|
|
|
Asset
retirement obligations
|
67,145
|
|
3,900
|
Revolving
credit facilities
|
5,748,844
|
|
-
|
Deferred
tax liability
|
4,732,696
|
|
1,012,095
|
|
|
|
|
Total
liabilities
|
13,840,111
|
|
4,146,568
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
Preferred
stock, $0.001 par value, 20,000,000 shares
|
|
|
|
authorized, no shares issued and
outstanding
|
-
|
|
-
|
Common
stock, $0.001 par value, 500,000,000 shares
|
|
|
|
authorized, 47,979,990 and 47,402,965 shares issued
and
|
|
|
|
outstanding at December 31, 2012 and 2011,
respectively
|
47,980
|
|
47,403
|
Additional
paid-in capital
|
29,847,212
|
|
28,058,674
|
Retained
earnings (accumulated deficit)
|
1,690,651
|
|
(3,220,759)
|
Total
stockholders' equity
|
31,585,843
|
|
24,885,318
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
45,425,954
|
|
$
29,031,886
|
BLACK
RIDGE OIL & GAS, INC. (Formerly Ante5, Inc.)
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Years
|
|
|
Ended
December 31,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Oil and
gas sales
|
|
$
6,022,540
|
|
$
1,917,719
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Production
expenses
|
|
649,603
|
|
527,844
|
Production
taxes
|
|
692,527
|
|
214,363
|
General
and administrative
|
|
3,530,643
|
|
1,850,536
|
Depletion
of oil and gas properties
|
|
2,443,482
|
|
919,631
|
Impairment
of oil and gas properties
|
|
-
|
|
2,392,742
|
Accretion
of discount on asset retirement obligations
|
|
4,557
|
|
509
|
Depreciation and amortization
|
|
24,206
|
|
14,043
|
Total
operating expenses
|
|
7,345,018
|
|
5,919,668
|
|
|
|
|
|
Net
operating loss
|
|
(1,322,478)
|
|
(4,001,949)
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
Interest
income
|
|
1,872
|
|
1,717
|
Interest
(expense)
|
|
(1,193,278)
|
|
(101,956)
|
Other
income
|
|
-
|
|
38,075
|
Settlement
income
|
|
17,020,759
|
|
-
|
Settlement
expenses
|
|
(5,874,864)
|
|
-
|
Loss on
disposal of equipment
|
|
-
|
|
(1,061)
|
Indemnification expenses
|
|
-
|
|
(97,986)
|
Total
other income (expense)
|
|
9,954,489
|
|
(161,211)
|
|
|
|
|
|
Income
(loss) before provision for income taxes
|
|
8,632,011
|
|
(4,163,160)
|
|
|
|
|
|
Provision
for income taxes
|
|
(3,720,601)
|
|
1,680,905
|
|
|
|
|
|
Net income
(loss)
|
|
$
4,911,410
|
|
$
(2,482,255)
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic
|
|
47,789,225
|
|
42,882,772
|
Weighted
average common shares outstanding - fully diluted
|
|
48,061,239
|
|
42,882,772
|
|
|
|
|
|
Net income
(loss) per common share - basic
|
|
$
0.10
|
|
$
(0.06)
|
Net income
(loss) per common share - fully diluted
|
|
$
0.10
|
|
$
(0.06)
|
BLACK
RIDGE OIL & GAS, INC. (Formerly Ante5, Inc.)
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
|
|
|
For the
Years
|
|
Ended
December 31,
|
|
2012
|
|
2011
|
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
Net income
(loss)
|
$
4,911,410
|
|
$
(2,482,255)
|
Adjustments to reconcile net income (loss)
|
|
|
|
to net
cash provided by (used in) operating activities:
|
|
|
|
Depletion
of oil and gas properties
|
2,443,482
|
|
919,631
|
Depreciation and amortization
|
24,206
|
|
14,043
|
Impairment
of oil and gas properties
|
-
|
|
2,392,742
|
Amortization of debt issuance costs
|
190,580
|
|
14,872
|
Accretion
of discount on asset retirement obligations
|
4,557
|
|
509
|
Loss on
disposal of equipment
|
-
|
|
1,061
|
Common
stock issued for terminated oil & gas acquisition
|
438,539
|
|
-
|
Common
stock issued for services
|
-
|
|
43,120
|
Common
stock warrants
|
271,933
|
|
74,022
|
Common
stock warrants, related parties
|
45,719
|
|
13,062
|
Common
stock options, related parties
|
849,909
|
|
710,740
|
Decrease
(increase) in assets:
|
|
|
|
Accounts
receivable
|
(183,230)
|
|
(657,163)
|
Settlement
receivable
|
(2,500,000)
|
|
-
|
Prepaid
expenses
|
(1,424,985)
|
|
(32,168)
|
Contingent
consideration receivable
|
6,008,602
|
|
463,398
|
Increase
(decrease) in liabilities:
|
|
|
|
Accounts
payable, including $160,000 and $-0-
|
|
|
|
of
settlement payables, respectively
|
347,744
|
|
73,202
|
Accounts
payable, related parties, including $116,234
|
|
|
|
and $-0-
of settlement payables, respectively
|
107,028
|
|
(67,571)
|
Accrued
expenses
|
61,666
|
|
(47,267)
|
Royalties
payable, related party
|
(300,431)
|
|
(23,169)
|
Deferred
tax liability
|
3,720,601
|
|
(1,680,905)
|
Net cash
provided by (used in) operating activities
|
15,017,330
|
|
(270,096)
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
Proceeds
from sale of oil and gas properties
|
1,893,649
|
|
336,925
|
Purchases
of oil and gas properties and development capital
expenditures
|
(21,839,963)
|
|
(12,731,225)
|
Purchases
of other property and equipment
|
(7,428)
|
|
(78,489)
|
Net cash
used in investing activities
|
(19,953,742)
|
|
(12,472,789)
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
Advances
from revolving credit facilities
|
16,350,000
|
|
-
|
Repayments
on revolving credit facilities
|
(10,601,156)
|
|
-
|
Proceeds
from the sale of common stock, net of $526,444 of offering
costs
|
-
|
|
5,616,057
|
Debt
issuance costs paid
|
(796,233)
|
|
(66,921)
|
Proceeds
from the exercise of common stock options
|
-
|
|
17,280
|
Net cash
provided by financing activities
|
4,952,611
|
|
5,566,416
|
|
|
|
|
NET CHANGE
IN CASH AND CASH EQUIVALENTS
|
16,199
|
|
(7,176,469)
|
CASH AND
CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
1,401,141
|
|
8,577,610
|
CASH AND
CASH EQUIVALENTS AT END OF PERIOD
|
$
1,417,340
|
|
$
1,401,141
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
Interest
paid
|
$
667,917
|
|
$
-
|
Income
taxes paid
|
$
-
|
|
$
-
|
|
|
|
|
NON-CASH
INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
Purchase
of oil and gas properties accrued within accounts
payable
|
$
2,618,145
|
|
$
2,422,150
|
Purchase
of oil and gas properties through issuance of common
stock
|
$
-
|
|
$
4,940,269
|
Capitalized asset retirement costs
|
$
58,688
|
|
$
3,391
|
Liabilities relieved to additional paid in
capital
|
$
183,015
|
|
$
-
|
Cautionary 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, increases in operator costs, 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.
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 12,256 net acres prospective for Bakken and/or
Three Forks development. For
additional information, visit the Company's website
at www.blackridgeoil.com.
Make sure you are first to receive timely information on Black
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Contact
Black Ridge Oil & Gas, Inc.
Ken DeCubellis, Chief Executive
Officer
952-426-1241
www.blackridgeoil.com
SOURCE Black Ridge Oil & Gas, Inc.