The Case for Ante5 Inc. and Voyager Oil and Gas (ANFC.pk and VYOG)
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.
Other companies with surrounding acreage consist of NOG, USO, BEXP, MRO...
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.
Voyager Oil & Gas, Inc. (VOYG.OB) is an exploration and production company based in Billings, Montana. The company was formed for the purpose of providing capital investments for acreage acquisitions and working interests in existing or planned hydrocarbon production with a special focus on scaleable, repeatable natural gas plays with established operators.
Note: This is the top performing stock year to date in the energy exploration sector (from $0.99 to $4.70).
Their business is initially expected to focus on properties in Montana and North Dakota, and they are targeting the Denver-Julesberg Basin Niobrara formation (in Weld County, Colorado) through its joint venture with Slawson Exploration and the Williston Basin Bakken/Three Forks.
Voyager's primary focus is oil shale resource prospects in the continental United States. Voyager currently controls approximately 147,000 net acres in the following five primary prospect areas:
24,000 core net acres targeting the Bakken/Three Forks in North Dakota and Montana;
24,000 net acres targeting the Niobrara formation in Colorado and Wyoming;
640 net acres targeting a specific Red River prospect in Montana;
33,500 net acres in a joint venture targeting the Heath Shale formation in Musselshell, Petroleum, Garfield and Fergus Counties of Montana;
and 65,000 net acres in a joint venture in the Tiger Ridge gas field in Blaine, Hill and Chouteau Counties of Montana.
The company was formerly called ante4, Inc. Before that it was known as Plains Energy Investments, Inc. and changed its name to ante4, Inc. on April 17, 2010.
BILLINGS, Mont., Nov. 15, 2010 (GLOBE NEWSWIRE) -- Voyager Oil & Gas, Inc. (OTCBB:VYOG) ("Voyager") today provides an operations update regarding its D-J Basin Niobrara activity.
Voyager currently controls a 50% interest in 44,000 net acres in the D-J Basin Niobrara play in a joint venture with Slawson Exploration. Voyager recently participated with Slawson Exploration in three previously announced Niobrara test wells in Weld County, Colorado. Two of the wells, Moonshine #1-36H and Outlaw #16-11-66H experienced significant hydrocarbon shows during drilling and have delineated an additional 22 high-grade locations to be drilled in 2011.
D-J Basin Niobrara
Voyager is participating on a heads-up basis for a 50% working interest in Slawson Exploration's 48,000 core net acre position in Weld County, Colorado and Laramie County, Wyoming. These initial test wells are the first of up to 60 gross wells planned over the next 24 months in the drilling program.
Williston Basin Bakken and Three Forks
Voyager currently controls approximately 24,000 net acres in the Williston Basin, primarily in Williams and McKenzie Counties, North Dakota and Richland County, Montana.
Tiger Ridge Gas
Voyager controls approximately 65,000 net acres in and around the Tiger Ridge Gas Field in North-Central Montana. Voyager is currently conducting seismic testing and plans to participate in the drilling of three initial wells operated by Devon Energy.
Heath Oil Shale
Voyager owns 33,500 net acres targeting the Heath Oil Shale of Central Montana. Voyager has begun to see substantial permitting and drilling activity in the area.
Disclosure: I am long MRO.
Additional disclosure: I am long ANFC.pk, VYOG, and ESPH.OB.