Biggest gamble in 2011?
After researching Voyager Oil and Gas (VYOG), see my blog here - I came across a spin-off company that they formed earlier this year called ante5. At that time the parent company was called ante4 (and prior to that they were called WPT Enterprises). ante5 is a small oil and gas company that also owns some rights to gaming revenues.
Pursuant to the spin-off, Ante5 retained certain assets and liabilities of Ante4, including a royalty stream consisting of 5% of gross gaming revenue and 5% of other revenue generated by the WPT Business and other assets of which Ante4 had previously sold to Party Gaming (the "Royalty Stream"), which guaranteed a minimum payment of $3 million for such Royalty Stream over the three-year period following the closing of the sales transaction.
They assembled a top notch management team and starting purchasing acreage for oil and gas development. In October of this year they got into the oil and gas business for real:
ANTE5, INC. will receive title and interest in mineral rights for over 3,700 net acres of land in the North Dakota's Williston Basin - specifically targeting the Bakken and Three Forks oil formations
LAS VEGAS, Oct. 14 /PRNewswire-FirstCall/ -- On October 7, 2010, Ante5, Inc., a Delaware corporation (the "Company") entered into an asset purchase agreement (the "APA") with Twin City Technical, LLC, a North Dakota limited liability company, and Irish Oil and Gas, Inc., a Nevada corporation (collectively, the "Sellers"), to acquire Sellers' right, title, and interest in mineral leases on approximately 3,712 net acres ("Mineral Leases") in consideration for a total of $2,969,648 of cash, payable in full at the closing, plus 5,011,281 shares of the common stock of the Company (collectively, the "Shares"). Sellers are reserving a 2% overriding royalty interest in the Mineral Leases, with the Company receiving a minimum of a 78% working interest.
This month things got going:ante5, Inc. Provides Operational Update of its Williston Basin Bakken and Three Forks Acreage12/6/2010
ante5, Inc. has provided an operational update regarding its Williston Basin Bakken and Three Forks acreage. Ante5 currently controls approximately 3,700 net acres in the Williston Basin, primarily in Williams County, North Dakota. Ante5 has spud four gross Bakken wells, two of which are producing, one is awaiting completion and the other is currently being drilled. In 2011, Ante5 expects to break ground on, or "spud", over 10 gross Bakken wells based on recent permitting activity on Ante5's leasehold interests.
All in all, if they can pull it off it sounds like an enormous opportunity lies ahead for these energy gamblers!