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EnigmaDude (98.06)

Biggest gamble in 2011?

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December 30, 2010 – Comments (4) | RELATED TICKERS: ALL , IN

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!

4 Comments – Post Your Own

#1) On December 30, 2010 at 1:50 PM, EnigmaDude (98.06) wrote:

I negelcted to mention that they also just raised $11M in an oversubscribed stock offering:

Ante5, Inc. (Pink Sheets: ANFC), a Delaware corporation ("Ante5" or the "Company") announced today that it has raised $11 million in its private placement equity financing.

The offering commenced on or about October 21, 2010. The original objective was to sell 10 million shares at $1.00 per share. But demand for Ante5 stock was high. In less than 60 days, the Company utilized its overallotment provision and successfully closed on $11 million of financing. "I am pleased investors are confident in our business model. We now have capital in place to continue developing our acreage and opportunistically acquiring additional mineral leases," stated Bradley Berman, Ante5's CEO.

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#2) On December 30, 2010 at 4:45 PM, lemoneater (79.38) wrote:

At least this will probably mean some more jobs for North Dakota.

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#3) On December 30, 2010 at 6:10 PM, Teacherman1 (62.19) wrote:

EnigmaDude. If and when they get listed on one of the major exchanges, I would be interested, just not a Pink Sheet kind of guy.

I will keep an eye on it though.

Thanks for the "heads up".

Lemoneater, hope you and your family had a good Christmas and you have a wonderful and wonder filled New Year.

BTW North Dakota already has a lot of jobs. Unfortunately they are all unpaid and involve shoveling snow back up toward Canada.

Spent some really cold and miserable winters in that area a long time ago, including the winter they had the worst blizzrd since the 1880''s.As I recall, it started snowing in September and didn't stop until late June.

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#4) On December 31, 2010 at 11:31 AM, lemoneater (79.38) wrote:

@ #3 Thanks for your good wishes for the New Year, Teacherman. My husband has one more week off and then he goes back to patiently explaining the principles behind circuits, etc.

My brother lives in South Dakota. He likes the wide open spaces and his wife has family there. Usually every year he goes up elk hunting in North Dakota. I cannot handle extreme cold very well so I have no desire to move anywhere that regularly gets such dramatically low wind chill.

Keep us posted on what happens, Enigma. It is interesting to hear about lesser known remote places in the U.S. Sometimes I forget about how much natural resources we have right here. 

 

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