Exhibit 99.1
Black
Ridge Oil & Gas Announces First Quarter 2015 Results
MINNETONKA, Minn., May
14, 2015 - Black Ridge Oil & Gas, Inc. ("the Company") (OTCQB: ANFC), a growth-oriented exploration and production
company focused on non-operated Bakken and Three Forks properties, today announced financial and operating results for
the three months ended March 31, 2015.
First Quarter 2015
Company Highlights
| · | Quarterly production increased 89% over
the first quarter of 2014 to 89.3 thousand barrels of oil equivalent (“MBoe”), an average of approximately 992 barrels
of oil equivalent per day (“Boe/d”) |
| · | Oil and gas sales totaled $2.9 million,
a decrease of 28% from the first quarter of 2014 |
| · | Participated in the completion of 39 gross
(0.91 net) wells, increasing our total producing well count to 286 gross (8.79 net), an increase of 60% over the first quarter
of 2014 |
| · | Recorded $2.1 million of adjusted EBITDA,
representing a decrease of 12% from the first quarter of 2014 |
| · | Reduced general and administrative expenses
to $9.07 per Boe, a decrease of 44% from the first quarter of 2014 |
| · | Increased full year 2015 production guidance
from an average of 1,100 BOEPD to 1,200 BOEPD |
Acreage and Drilling
As of March 31, 2015,
the Company controlled approximately 9,400 net acres in the Williston Basin. Approximately 67% of the acreage is held by production
with 286 gross (8.79 net) wells producing. Additionally, the Company had 2.2 net wells in development as of March 31, 2015.
Management Comment
Ken DeCubellis, Black
Ridge’s CEO, commented, “While the commodity price environment was challenging during the first quarter of 2015, we
are generally pleased with the underlying performance of our asset base. The Company was able to achieve our second highest average
production on record in the first quarter despite lower than expected volume in Stockyard Creek as wells were shut in for offset
completion activities. As we look forward to the balance of 2015, we are cautiously optimistic as we have seen oil prices improve
by over 20%, as compared to the average in the first quarter, and we have received indications from our operating partners that
drilling and completion costs will be lower than the assumptions used in our 2015 capital plan. However, we are not changing our
original 2015 development plan, with the cornerstone being our 1.76 net well Teton project, which is currently scheduled to commence
production during the second half of 2015. Any incremental cash flow above our original 2015 plan will be used to reduce debt and
build additional liquidity.”
Teton Project Update
and Production Guidance
The 23 gross well,
1.76 net well, Teton project continues development per plan. All of the wells in this project have finished the drilling phase
and completions will begin in the coming weeks. Based on the Company’s current expectation for total drilling and completion
costs, estimated ultimate recoveries, and the current commodity price deck, the Teton project is expected to meet or exceed our
30% IRR investment hurdle. The Company is increasing our full year production guidance from an average of 1,100 BOEPD to 1,200
BOEPD. We anticipate our production levels to be below the full year average until the Teton project is online, at which point
our daily production volumes will exceed the full year average.
DeCubellis added,
“The Company has taken some risk to participate in the Teton project during this phase of the commodity price cycle. We are
excited about the current pace of the project’s development, our current view of the overall economics of the project, and
most importantly, the significant improvement that the project will bring to the Company’s balance sheet once in full production.
As such, we have recently taken the opportunity to hedge additional volume from October 2015 through June 2016.”
Liquidity Position
and Borrowing Base
Black Ridge ended
the quarter with $25.95 million drawn on its $34 million senior secured revolving credit facility. The next redetermination
date is scheduled for October 1, 2015. The Company expects to fund 2015 development from availability under the borrowing
base and cash flow from operations.
Hedging Update
In the first quarter
of 2015, the Company realized a $1,133,421 gain on settled derivatives and a $367,329 unrealized gain on mark-to-market adjustments
to its outstanding derivatives contracts. As of March 31, 2015, the Company’s net derivative asset was $7,947,074. On May
11, 2015, the Company entered into new swap contracts for 36,000 barrels in Q4 2015 at $61.87 and 45,000 barrels in 1H 2016 at
$62.88. The following table summarizes the Company’s open crude oil swap contracts as of May 12, 2015:
| |
|
Oil |
|
Weighted Average |
| Term |
|
(barrels) |
|
Price ($ per Bbl) |
| 2015: |
|
|
|
|
| Q2 |
|
21,750 |
|
89.84 |
| Q3 |
|
21,750 |
|
89.84 |
| Q4 |
|
57,750 |
|
72.40 |
| 2016: |
|
|
|
|
| Q1 |
|
43,500 |
|
75.84 |
| Q2 |
|
43,500 |
|
75.84 |
| Q3 |
|
21,000 |
|
89.73 |
| Q4 |
|
21,000 |
|
89.73 |
| 2017: |
|
|
|
|
| Q1 |
|
19,500 |
|
87.18 |
| Q2 |
|
19,500 |
|
87.18 |
| Q3 |
|
19,500 |
|
87.18 |
| Q4 |
|
19,500 |
|
87.18 |
In addition to the open crude oil swap contracts,
the Company has entered into costless collar contracts. The costless collars are used to establish floor and ceiling prices on
anticipated crude oil production. There were no premiums paid or received by us related to the costless collar contracts. The following
table reflects open costless collar crude oil contracts as of May 12, 2015:
| |
|
Oil |
|
Floor/Ceiling |
|
|
| Term |
|
(Barrels) |
|
Price (WTI) |
|
Basis |
| Costless Collars – Crude Oil |
|
|
|
|
|
|
| 04/01/2015 – 12/31/2015 |
|
27,000 |
|
$75.00/$95.60 |
|
NYMEX |
| 01/01/2016 – 06/30/2016 |
|
10,002 |
|
$80.00/$89.50 |
|
NYMEX |
2015 Operating and Financial Results
The following table presents selected operating
and financial data for the periods indicated.
| | |
Three Months Ended | | |
| |
| | |
March 31, | | |
| |
| | |
2015 | | |
2014 | | |
% Change | |
| Net Production: | |
| | | |
| | | |
| | |
| Oil (Bbl) | |
| 72,922 | | |
| 43,155 | | |
| 69 | |
| Natural gas (Mcf) | |
| 98,314 | | |
| 24,337 | | |
| 304 | |
| Barrel of oil equivalent (Boe) | |
| 89,308 | | |
| 47,211 | | |
| 89 | |
| Average daily production (Boe/d) | |
| 992 | | |
| 525 | | |
| 89 | |
| | |
| | | |
| | | |
| | |
| Average Sales Prices: | |
| | | |
| | | |
| | |
| Oil (per Bbl) | |
$ | 37.60 | | |
$ | 87.99 | | |
| (57 | ) |
| Effect of oil hedges on average price (per Bbl) | |
$ | 15.55 | | |
$ | (2.69 | ) | |
| | |
| Oil net of hedging (per Bbl) | |
$ | 53.15 | | |
$ | 85.30 | | |
| (38 | ) |
| Natural gas (per Mcf) | |
$ | 1.47 | | |
$ | 9.58 | | |
| (85 | ) |
| Effect of natural gas hedges on average price (per Mcf) | |
$ | – | | |
$ | – | | |
| | |
| Natural gas net of hedging (per Mcf) | |
$ | 1.47 | | |
$ | 9.58 | | |
| (85 | ) |
| | |
| | | |
| | | |
| | |
| Per Boe including settled derivatives | |
$ | 45.01 | | |
$ | 82.91 | | |
| (46 | ) |
| | |
| | | |
| | | |
| | |
| Operating Expenses (per Boe): | |
| | | |
| | | |
| | |
| Production expenses | |
$ | 11.08 | | |
$ | 10.75 | | |
| 3 | |
| Production taxes | |
$ | 3.20 | | |
$ | 8.59 | | |
| (63 | ) |
| G&A expense | |
$ | 9.07 | | |
$ | 16.33 | | |
| (44 | ) |
| Depletion, depreciation, amortization and accretion | |
$ | 29.59 | | |
$ | 33.88 | | |
| (13 | ) |
First Quarter 2015
Financial Results
In the first quarter
of 2015, oil and gas sales, excluding the impact of settled derivatives, were $2.89 million, a decrease of 28% as compared to the
first quarter of 2014. The Company realized an average price of $37.60 per barrel of oil and $1.47 per mcf of gas, representing
decreases of 57% and 85%, respectively, as compared to the first quarter of 2014. The impact of weaker commodity prices was partially
offset by an 89% increase in production over the first quarter of 2014.
The Company’s
production in the first quarter of 2015 was comprised of 82% oil and 18% natural gas and natural gas liquids, on a Boe basis. The
Company’s increased gas sales percentage reflects the continued improvement in gas infrastructure in North Dakota and higher
gas production in the Company’s current areas of focus.
Lease operating expenses
for the first quarter of 2015 were $1.0 million, or $11.08 per Boe, compared to $0.5 million, or $10.75 per
Boe, for the first quarter of 2014. The increase in lease operating expense in the first quarter was primarily attributable to
cleanout costs on producing wells subsequent to completion activities on offset locations in the Company’s Stockyard Creek
project.
General and administrative
expenses (“G&A”) for the first quarter of 2015 were $0.8 million, or $9.07 per Boe, compared to $0.8 million,
or $16.33 per Boe for the first quarter of 2014. Cash G&A (non-GAAP, excludes stock-based compensation expense) was $0.6 million,
or $7.27 per Boe, for the first quarter of 2015 compared to $0.6 million, or $13.27 per Boe for the first quarter of 2014.
The Company recorded $2.1 million of
adjusted EBITDA in the first quarter of 2015, representing a decrease of 12% from $2.4 million of adjusted EBITDA in the
first quarter of 2014. Adjusted EBITDA is a non-GAAP financial measure. Please refer to the reconciliation in this release
for additional information about this measure.
Producing Wells
The following table
sets forth wells in which Black Ridge holds a participating interest that were completed or acquired during the quarter ending
March 31, 2015:
| Well |
Operator |
Location |
WI(1) |
| Bootleg 6-14-15TFH |
Slawson |
Williams, ND |
11.4% |
| Bootleg 7-14-15TFH |
Slawson |
Williams, ND |
11.3% |
| Bootleg 8-14-15TF2H |
Slawson |
Williams, ND |
11.3% |
| Billabong 2-13-14HBK |
Slawson |
Williams, ND |
7.5% |
| Ironbank 4-14-13TFH |
Slawson |
Williams, ND |
5.5% |
| Ironbank 7-14-13TFH |
Slawson |
Williams, ND |
5.4% |
| Ironbank 6-14-13TFH |
Slawson |
Williams, ND |
5.4% |
| EN-VP AND R- ###-##-####H-1 |
Hess |
Mountrail, ND |
3.1% |
| EN-VP AND R- ###-##-####H-2 |
Hess |
Mountrail, ND |
3.1% |
| EN-VP AND R- ###-##-####H-3 |
Hess |
Mountrail, ND |
3.1% |
| EN-VP AND R- ###-##-####H-4 |
Hess |
Mountrail, ND |
3.1% |
| Duletski Federal 14-12PH |
Whiting |
Billings, ND |
0.8% |
| CCU Main Streeter 24-24TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU North Coast 41-25MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU North Coast 4-8-23TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU North Coast 4-8-23MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU North Coast 31-25MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU North Coast 41-25TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 1-8-7TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 2-8-7MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 3-8-7TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 3-8-7MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 5-8-7TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 5-8-7MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 6-8-7TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 6-8-7MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 8-8-7TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 7-8-7MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Pullman 7-8-7TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Golden Creek 44-23TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Golden Creek 44-23MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Main Streeter 14-24MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| Oakdale 2-13H1 |
Continental |
Dunn, ND |
0.6% |
| Ryden 3-24H |
Continental |
Dunn, ND |
0.6% |
| Ryden 2-24AH1 |
Continental |
Dunn, ND |
0.6% |
| Oakdale 5-13H |
Continental |
Dunn, ND |
0.6% |
| Oakdale 3-13H |
Continental |
Dunn, ND |
0.6% |
| Oakdale 4-13H1 |
Continental |
Dunn, ND |
0.6% |
| Ryden 4-24H1 |
Continental |
Dunn,
ND |
0.6% |
(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.
"Drilling" Wells
The following table
sets forth wells in which Black Ridge holds a participating interest that were either preparing to drill, drilling, awaiting completion
or completing as of March 31, 2015:
| Well |
Operator |
Location |
WI(1) |
| Rainbow 10-19-18HBK |
Samson Oil and Gas |
Williams, ND |
10.0% |
| Kings Canyon 5-8-34UTF |
Burlington Resources |
McKenzie, ND |
8.4% |
| Teton 5-8-10MBH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Kings Canyon 2-8-34UTFH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Kings Canyon 4-8-34UTFH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Kings Canyon 4-8-34MBH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Kings Canyon 4-1-27MTFH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Teton 5-1-3TFSH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Teton 3-8-10MBH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Teton 2-8-10MBH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Teton 6-8-10TFSH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Teton 6-8-10MBH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Kings Canyon 6-1-27MBH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Teton 8-8-10TFSH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Teton 7-1-3TFSH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Kings Canyon 7-8-34MBH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Kings Canyon 6-8-34UTFH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Teton 7-8-10MBH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Kings Canyon 6-1-27MTFH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Kings Canyon 3-1-27MTFH |
Burlington Resources |
McKenzie, ND |
8.4% |
| Tetonorman 1-1-3UTFH ULW |
Burlington Resources |
McKenzie, ND |
6.3% |
| Remingteton 8-8-10MBH |
Burlington Resources |
McKenzie, ND |
6.2% |
| Thorp Federal 11X-28A |
XTO |
Dunn, ND |
3.4% |
| DeKing 1-8-34MBH-ULW |
Burlington Resources |
McKenzie, ND |
2.1% |
| LaCanyon 8-8-34MBH ULW |
Burlington Resources |
McKenzie, ND |
2.1% |
| EN-Weyrauch B-LW-154-93-3031H-1 |
Hess |
Mountrail, ND |
1.6% |
| P Jackman 156-100-2-18-6-1H |
Whiting |
Williams, ND |
1.0% |
| P Jackman 156-100-2-18-6-2H |
Whiting |
Williams, ND |
1.0% |
| P Berger 156-100-14-7-6-4H |
Kodiak |
Williams, ND |
1.0% |
| P Berger 156-100-14-7-6-3H |
Kodiak |
Williams, ND |
1.0% |
| Gobbler 6-35-26TFH |
Slawson |
Mountrail, ND |
0.8% |
| Aaberg 8-5N-1H |
Mountain Divide |
Divide, ND |
0.8% |
| CCU Dakotan 3-8-17MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Powell 41-29TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU North Coast 31-25TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 2-7-17MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 1-7-17TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 1-7-17MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 2-7-17TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 5-8-17TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 6-8-17MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 7-8-17TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 7-8-17MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 5-8-17MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Dakotan 4-8-17TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Red River 7-2-15TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Red River 8-2-15MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Gopher 1-2-15TFH |
Burlington Resources |
Dunn, ND |
0.8% |
| CCU Gopher 2-2-15MBH |
Burlington Resources |
Dunn, ND |
0.8% |
| Jersey 1-6H |
Continental |
Mountrail, ND |
0.8% |
| Jersey 5-6H |
Continental |
Mountrail, ND |
0.8% |
| Jersey 3-6H1 |
Continental |
Mountrail, ND |
0.8% |
| Jersey 2-6H2 |
Continental |
Mountrail, ND |
0.8% |
| P Johnson 153-98-1-6-7-16H |
Kodiak |
Williams, ND |
0.6% |
| P Johnson 153-98-1-6-7-16HA |
Kodiak |
Williams, ND |
0.6% |
| Burr Federal 10-26H |
Continental |
Mountrail, ND |
0.5% |
| Burr Federal 9-26H1 |
Continental |
Mountrail, ND |
0.5% |
| Burr Federal 11-26H |
Continental |
Mountrail, ND |
0.5% |
| Burr Federal 12-26H1 |
Continental |
Mountrail, ND |
0.5% |
| Burr Federal 13-26H |
Continental |
Mountrail, ND |
0.5% |
| Burr Federal
14-26H |
Continental |
Mountrail,
ND |
0.5% |
(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 Loss and Adjusted EBITDA
In addition to reporting
net loss as defined under GAAP, we also present Adjusted Net Loss and Adjusted EBITDA. We define Adjusted Net Loss as net loss,
excluding net income (loss) on the mark-to-market of derivatives, net of tax. We define Adjusted EBITDA as earnings (loss) before
(i) interest expense, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) accretion of abandonment liability,
(v) income (losses) on the mark-to-market of derivatives, and (vi) 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 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 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 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 Loss and
Adjusted EBITDA to net loss, GAAP, is included below:
Reconciliation of Net Loss to Adjusted
Net Loss
| | |
Three Months Ended | |
| | |
March 31, | |
| | |
2015 | | |
2014 | |
| Net loss | |
$ | (1,272,936 | ) | |
$ | (381,560 | ) |
| Add back: | |
| | | |
| | |
| Losses (gains) on the mark-to-market of derivatives, net of tax (a) | |
| (246,239 | ) | |
| 134,835 | |
| Adjusted net loss | |
$ | (1,519,175 | ) | |
$ | (246,725 | ) |
| | |
| | | |
| | |
| Weighted average common shares outstanding - basic | |
| 47,979,990 | | |
| 47,979,990 | |
| Weighted average common shares outstanding - fully diluted | |
| 47,979,990 | | |
| 47,979,990 | |
| | |
| | | |
| | |
| Net loss per common share - basic | |
$ | (0.03 | ) | |
$ | (0.01 | ) |
| Add: | |
| | | |
| | |
| Change due to losses (gains) on the mark-to-market of derivatives, net of tax | |
| – | | |
| – | |
| Adjusted net loss per common share - basic | |
$ | (0.03 | ) | |
$ | (0.01 | ) |
| | |
| | | |
| | |
| Net income (loss) per common share - fully diluted | |
| (0.03 | ) | |
$ | (0.01 | ) |
| Add: | |
| | | |
| | |
| Change due to losses (gains) on the mark-to-market of derivatives, net of tax | |
| – | | |
| – | |
| Adjusted net loss per common share - fully diluted | |
$ | (0.03 | ) | |
$ | (0.01 | ) |
(a)Adjusted to reflect tax benefit
(expense), computed based on our effective tax rate of approximately 33% in 2015 and 37% in 2014, of ($121,000) and $79,200 for
the three months ended March 31, 2015 and 2014, respectively.
Reconciliation of Net Loss to Adjusted
EBITDA
| |
Three Months Ended | |
| |
March 31, | |
| | |
2015 | | |
2014 | |
| Net loss | |
$ | (1,272,936 | ) | |
$ | (381,560 | ) |
| Add back: | |
| | | |
| | |
| Interest expense, net, excluding amortization of warrant based financing costs | |
| 1,406,820 | | |
| 929,378 | |
| Income tax provision | |
| (635,391 | ) | |
| (284,023 | ) |
| Depreciation, depletion, and amortization | |
| 2,634,299 | | |
| 1,594,857 | |
| Accretion of abandonment liability | |
| 7,929 | | |
| 4,505 | |
| Share based compensation | |
| 321,352 | | |
| 297,762 | |
| Unrealized gain (loss) on the mark-to-market of derivatives | |
| (367,328 | ) | |
| 214,035 | |
| | |
| | | |
| | |
| Adjusted EBITDA | |
$ | 2,094,745 | | |
$ | 2,374,954 | |
BLACK RIDGE OIL & GAS, INC.
CONDENSED
BALANCE SHEETS
| | |
March 31, | | |
December 31, | |
| | |
2015 | | |
2014 | |
| | |
(Unaudited) | | |
| |
| ASSETS | |
| | | |
| | |
| | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 97,781 | | |
$ | 94,682 | |
| Derivative instruments | |
| 3,863,912 | | |
| 3,571,803 | |
| Accounts receivable | |
| 3,420,230 | | |
| 5,740,171 | |
| Prepaid expenses | |
| 38,243 | | |
| 41,387 | |
| Total current assets | |
| 7,420,166 | | |
| 9,448,043 | |
| | |
| | | |
| | |
| Property and equipment: | |
| | | |
| | |
| Oil and natural gas properties, full cost method of accounting | |
| | | |
| | |
| Proved properties | |
| 118,421,670 | | |
| 112,418,105 | |
| Unproved properties | |
| 2,168,117 | | |
| 591,121 | |
| Other property and equipment | |
| 139,004 | | |
| 139,004 | |
| Total property and equipment | |
| 120,728,791 | | |
| 113,148,230 | |
| Less, accumulated depreciation, amortization, depletion and allowance for impairment | |
| (21,536,823 | ) | |
| (18,902,524 | ) |
| Total property and equipment, net | |
| 99,191,968 | | |
| 94,245,706 | |
| | |
| | | |
| | |
| Derivative instruments | |
| 4,083,162 | | |
| 4,007,942 | |
| Debt issuance costs, net | |
| 604,697 | | |
| 701,019 | |
| | |
| | | |
| | |
| Total assets | |
$ | 111,299,993 | | |
$ | 108,402,710 | |
| | |
| | | |
| | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | | |
| | |
| | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
$ | 11,014,273 | | |
$ | 10,291,262 | |
| Accrued expenses | |
| 68,416 | | |
| 57,435 | |
| Total current liabilities | |
| 11,082,689 | | |
| 10,348,697 | |
| | |
| | | |
| | |
| Asset retirement obligations | |
| 330,557 | | |
| 286,804 | |
| Revolving credit facility and long term debt, net of discounts of $1,869,656 and $2,072,483, respectively | |
| 55,701,544 | | |
| 51,834,603 | |
| Deferred tax liability | |
| 5,957,649 | | |
| 6,593,040 | |
| | |
| | | |
| | |
| Total liabilities | |
| 73,072,439 | | |
| 69,063,144 | |
| | |
| | | |
| | |
| 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
shares issued and outstanding | |
| 47,980 | | |
| 47,980 | |
| Additional paid-in capital | |
| 33,812,638 | | |
| 33,651,714 | |
| Retained earnings | |
| 4,366,936 | | |
| 5,639,872 | |
| Total stockholders' equity | |
| 38,227,554 | | |
| 39,339,566 | |
| | |
| | | |
| | |
| Total liabilities and stockholders' equity | |
$ | 111,299,993 | | |
$ | 108,402,710 | |
BLACK RIDGE OIL & GAS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| | |
For the Three Months | |
| | |
Ended March 31, | |
| | |
2015 | | |
2014 | |
| Oil and gas sales | |
$ | 2,886,456 | | |
$ | 4,030,420 | |
| Gain (loss) on settled derivatives | |
| 1,133,421 | | |
| (116,163 | ) |
| Gain (loss) on the mark-to-market of derivatives | |
| 367,329 | | |
| (214,035 | ) |
| Total revenues | |
$ | 4,387,206 | | |
$ | 3,700,222 | |
| | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | |
| Production expenses | |
| 989,857 | | |
| 507,463 | |
| Production taxes | |
| 286,192 | | |
| 405,307 | |
| General and administrative | |
| 810,008 | | |
| 770,773 | |
| Depletion of oil and gas properties | |
| 2,630,032 | | |
| 1,586,932 | |
| Accretion of discount on asset retirement obligations | |
| 7,929 | | |
| 4,505 | |
| Depreciation and amortization | |
| 4,267 | | |
| 7,925 | |
| Total operating expenses | |
| 4,728,285 | | |
| 3,282,905 | |
| | |
| | | |
| | |
| Net operating income (loss) | |
| (341,079 | ) | |
| 417,317 | |
| | |
| | | |
| | |
| Other income (expense): | |
| | | |
| | |
| Interest (expense) | |
| (1,567,248 | ) | |
| (1,082,900 | ) |
| Total other income (expense) | |
| (1,567,248 | ) | |
| (1,082,900 | ) |
| | |
| | | |
| | |
| Loss before provision for income taxes | |
| (1,908,327 | ) | |
| (665,583 | ) |
| | |
| | | |
| | |
| Provision for income taxes | |
| 635,391 | | |
| 284,023 | |
| | |
| | | |
| | |
| Net loss | |
$ | (1,272,936 | ) | |
$ | (381,560 | ) |
| | |
| | | |
| | |
| | |
| | | |
| | |
| Weighted average common shares outstanding - basic | |
| 47,979,990 | | |
| 47,979,990 | |
| Weighted average common shares outstanding - fully diluted | |
| 47,979,990 | | |
| 47,979,990 | |
| | |
| | | |
| | |
| Net loss per common share - basic | |
$ | (0.03 | ) | |
$ | (0.01 | ) |
| Net loss per common share - fully diluted | |
$ | (0.03 | ) | |
$ | (0.01 | ) |
BLACK RIDGE OIL & GAS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| | |
For the Three Months | |
| | |
Ended March 31, | |
| | |
2015 | | |
2014 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| | | |
| | |
| Net loss | |
$ | (1,272,936 | ) | |
$ | (381,560 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |
| | | |
| | |
| Depletion of oil and gas properties | |
| 2,630,032 | | |
| 1,586,932 | |
| Depreciation and amortization | |
| 4,267 | | |
| 7,925 | |
| Amortization of debt issuance costs | |
| 96,322 | | |
| 70,653 | |
| Accretion of discount on asset retirement obligations | |
| 7,929 | | |
| 4,505 | |
| (Gain) loss on the mark-to-market of derivatives | |
| (367,329 | ) | |
| 214,035 | |
| Accrued payment in kind interest applied to long term debt | |
| 314,114 | | |
| 208,803 | |
| Amortization of original issue discount on debt | |
| 42,399 | | |
| 26,316 | |
| Amortization of debt discounts, warrants | |
| 160,428 | | |
| 153,522 | |
| Common stock options issued to employees and directors | |
| 160,924 | | |
| 144,240 | |
| Deferred income taxes | |
| (635,391 | ) | |
| (284,023 | ) |
| Decrease (increase) in current assets: | |
| | | |
| | |
| Accounts receivable | |
| 2,319,941 | | |
| (1,160,467 | ) |
| Prepaid expenses | |
| 3,144 | | |
| (8,444 | ) |
| Increase (decrease) in current liabilities: | |
| | | |
| | |
| Accounts payable | |
| 110,460 | | |
| 252,259 | |
| Accrued expenses | |
| 10,981 | | |
| 42,271 | |
| Net cash provided by operating activities | |
| 3,585,285 | | |
| 876,967 | |
| | |
| | | |
| | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| | | |
| | |
| Proceeds from sale of oil and gas properties | |
| 99,000 | | |
| 1,234,740 | |
| Purchases of oil and gas properties and development capital expenditures | |
| (7,031,186 | ) | |
| (7,582,458 | ) |
| Advances to operators | |
| – | | |
| (1,410,896 | ) |
| Purchases of other property and equipment | |
| – | | |
| (8,094 | ) |
| Net cash used in investing activities | |
| (6,932,186 | ) | |
| (7,766,708 | ) |
| | |
| | | |
| | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| | | |
| | |
| Advances from revolving credit facilities and long term debt | |
| 5,700,000 | | |
| 9,350,000 | |
| Repayments on revolving credit facilities | |
| (2,350,000 | ) | |
| (3,550,000 | ) |
| Net cash provided by financing activities | |
| 3,350,000 | | |
| 5,800,000 | |
| | |
| | | |
| | |
| NET CHANGE IN CASH | |
| 3,099 | | |
| (1,089,741 | ) |
| CASH AT BEGINNING OF PERIOD | |
| 94,682 | | |
| 1,150,347 | |
| CASH AT END OF PERIOD | |
$ | 97,781 | | |
$ | 60,606 | |
| | |
| | | |
| | |
| | |
| | | |
| | |
| SUPPLEMENTAL INFORMATION: | |
| | | |
| | |
| Interest paid | |
$ | 1,110,083 | | |
$ | 640,978 | |
| Income taxes paid | |
$ | – | | |
$ | – | |
| | |
| | | |
| | |
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | |
| | | |
| | |
| Net change in accounts payable for purchase of oil and gas properties | |
$ | 612,551 | | |
$ | (846,354 | ) |
| Advances to operators applied to purchase of oil and gas properties | |
$ | – | | |
$ | 321,904 | |
| Capitalized asset retirement costs, net of revision in estimate | |
$ | 35,824 | | |
$ | 23,259 | |
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 management’s 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. For additional
information, visit the Company's website at www.blackridgeoil.com.
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Contact
Black Ridge Oil & Gas, Inc.
Ken DeCubellis, Chief Executive
Officer
952-426-1241
www.blackridgeoil.com
