SOURCE: Voyager Oil & Gas, Inc.

August 06, 2012 06:55 ET

Voyager Oil & Gas, Inc. Reports Record Quarterly Production Volumes and Adjusted EBITDA for Its Second Quarter Ended June 30, 2012

BILLINGS, MT--(Marketwire - Aug 6, 2012) - Voyager Oil & Gas, Inc. (NYSE MKT: VOG) ("Voyager," the "Company" or "we") announces Company record oil production, revenue and Adjusted EBITDA* for the second quarter ended June 30, 2012. The final unaudited Quarterly Report will be released and filed on or about August 6, 2012.

Second Quarter 2012 Highlights

  • Record quarterly oil production of 85,363 barrels of oil equivalent (BOE), or an average of 938 barrels of oil equivalent per day (BOEPD). Second quarter production was up 50% from 56,865 BOE (625 BOEPD) in the previous quarter ended March 31, 2012;

  • Record oil and natural gas sales of $6,763,429 (99% of which is attributable to the sale of crude oil), up 33% from $5,098,333 in the first quarter ending March 31, 2012;

  • Adjusted EBITDA* of $4,811,883, up 38% from $3,483,733 in the quarter ended March 31, 2012; and

  • Adjusted income* of $1,067,351 or $0.02 per share (basic and diluted) for the three months ended June 30, 2012.

* Non-GAAP financial measure. Please see Adjusted EBITDA and Adjusted Income tables later in this earnings release for a reconciliation of these measures to their nearest comparable GAAP measure.

Second Quarter 2012 Financial Results

During the quarter ended June 30, 2012, Voyager reports oil and natural gas sales of $6,763,429, which represents an increase of 33% from $5,098,333 during the first quarter ending March 31, 2012 and an increase of 306% from $1,666,535 in the year ago quarter ended June 30, 2011. This increase in revenue is due primarily to production from 150 gross (6.56 net) wells producing in the Bakken and Three Forks formations as of June 30, 2012, compared to 118 gross (5.03 net) wells and 24 gross (1.13 net) wells producing in the same formations as of March 31, 2012 and June 30, 2011, respectively. Production accelerated throughout the quarter with 35% of the quarterly production (29,721 BOE or about 991 BOEPD) during the month of June. Crude oil represented 99% of revenue and 95% of production during the second quarter 2012.

         
    June 30, 2012   June 30, 2011
Williston Basin Wells   Gross   Net   Gross   Net
                 
Wells at Beginning of Quarter   118   5.03   11   0.48
                 
Wells Added to Production During the Quarter   32   1.53   13   0.65
                 
Producing Wells at Quarter End   150   6.56   24   1.13
                 
Drilling, Awaiting Completion, or Completing at Quarter End   30   1.10   39   1.20
                 
Participating Wells at Quarter End   180   7.66   63   2.33
                 

As of June 30, 2012, Voyager had interests in a total of 180 gross (7.66 net) wells in the Bakken and Three Forks formations, of which 150 gross (6.56 net) wells were producing and 30 gross (1.10 net) wells were in the process of being drilled or completed. Permits continue to be issued for drilling units in which Voyager has acreage interests within North Dakota and Montana, and activity in the Williston Basin remains strong.

Adjusted EBITDA for the second quarter 2012 was a record $4,811,883, up 38% from $3,483,733 during the first quarter ended March 31, 2012 and up 530% from $763,866 during the second quarter ended June 30, 2011. The increase in adjusted EBITDA was driven by increased production and improved operating leverage as production scale increased. Adjusted EBITDA per BOE for the quarter ended June 30, 2012 was $56.37, compared to $61.26 during the first quarter ended March 31, 2012 and $42.76 during the year ago quarter ended June 30, 2011. Adjusted EBITDA per BOE during the second quarter 2012 was lower than first quarter 2012 due mostly to a nearly $8 decrease in realized crude oil prices during the quarter as the average crude oil price of NYMEX West Texas Intermediate (NYMEX) was about $103 per barrel during first quarter 2012 and about $93 per barrel during second quarter 2012.

       
    Three Months Ended  
    Jun. 30,     Mar. 31,     Dec. 31,     Sep. 30,     Jun. 30,  
    2012     2012     2011     2011     2011  
Net Production:                                        
Crude Oil (Barrels)     81,323       54,735       35,569       32,088       17,695  
Crude Oil Mix     95 %     96 %     97 %     96 %     99 %
Natural Gas and Other Liquids (Mcf)     24,237       12,777       5,971       7,387       1,027  
                                         
Total Net Production (BOE)     85,363       56,865       36,564       33,319       17,866  
Quarter-Over-Quarter Increase     50 %     56 %     10 %     86 %     74 %
                                         
Average Daily Production (BOEPD)     938       625       397       362       196  
Quarter-Over-Quarter Increase     50 %     57 %     10 %     84 %     72 %
                                         
Average Sales Prices:                                        
Crude Oil Per Barrel   $ 82.34     $ 91.79     $ 83.98     $ 87.83     $ 93.88  
Effect of Settled Oil Derivatives Per Barrel   $ 1.09     $ (0.50 )     --       --       --  
Crude Oil Net of Settled Derivatives Per Barrel   $ 83.43     $ 91.29     $ 83.98     $ 87.83     $ 93.88  
Natural Gas and Other Liquids Per Mcf   $ 2.78     $ 5.81     $ 11.29     $ 7.35     $ 5.30  
Realized Price Per BOE (a)   $ 80.27     $ 89.17     $ 83.53     $ 86.22     $ 93.28  
                                         
Average Per BOE:                                        
Production Expenses   $ 5.68     $ 8.21     $ 8.40     $ 6.65     $ 8.30  
Production Taxes   $ 8.54     $ 8.90     $ 6.25     $ 7.25     $ 9.37  
G&A Expenses, Excl. Shared-Based Comp.   $ 9.55     $ 10.80     $ 16.63     $ 10.76     $ 30.99  
Total   $ 23.77     $ 27.91     $ 31.28     $ 24.66     $ 48.66  
                                         
Adjusted EBITDA per BOE   $ 56.37     $ 61.26     $ 52.32     $ 61.63     $ 42.76  
                                         
Williston Basin Acreage:                                        
Total Net Acres at End of Period     33,031       32,823       31,957       30,821       28,027  
Net Acres Added     208       866       1,136       2,794       28,027  
Average Cost / Acre Acquired During Period   $ 2,000     $ 2,100     $ 2,116     $ 1,441     $ 1,548  
                                         
% of Net Acres Held By Production (b)     34 %     29 %     24 %     20 %     10 %
                                         
(a) Realized Price includes realized gains or losses on cash settlements for commodity derivatives.  
(b) Based on a 1,280-acre spacing unit.  
                                         

Gain on Commodity Derivatives

Realized commodity derivative gains were $88,568 and $61,025, for the three and six months ended June 30, 2012, respectively. Unrealized commodity derivative gains were $2,162,975 and $1,278,083, for the three and six months ended June 30, 2012, respectively. There were no commodity derivatives losses during the three and six months ended June 30, 2011. Our derivatives are not designated for hedge accounting and are accounted for using the mark-to-market accounting method whereby gains and losses from changes in the fair value of derivative instruments are recognized immediately into earnings. Mark-to-market accounting treatment creates volatility in our revenues as unrealized gains and losses from derivatives are included in total revenues and are not included in accumulated other comprehensive income in the accompanying balance sheets. As commodity prices increase or decrease, such changes will have an opposite effect on the mark-to-market value of our derivatives. Future derivative gains will be offset by lower future wellhead revenues. Conversely, future derivative losses will be offset by higher future wellhead revenues based on the value at the settlement date. At June 30, 2012, all of our derivative contracts are recorded at their fair value, which was a net asset of $1,278,083. We did not incur any net asset or liability with respect to derivative contracts prior to January 1, 2012.

         
    Three Months Ended June 30,   Six Months Ended June 30,
    2012   2011   2012   2011
Net Revenues:                        
Total Oil and Natural Gas Sales   $ 6,763,429   $ 1,666,535   $ 11,861,762   $ 2,499,156
Realized Gain on Commodity Derivatives     88,568     -     61,025     -
Unrealized Gain on Commodity Derivatives     2,162,975     -     1,278,083     -
Revenues   $ 9,014,972   $ 1,666,535   $ 13,200,870   $ 2,499,156
                         

Liquidity

As of June 30, 2012, Voyager had $4,113,794 in cash and total debt outstanding of $18,030,730. Voyager has a credit facility with Macquarie Bank Ltd. ("Macquarie Bank") that provides up to a maximum of $150 million in principal amount of borrowings to be used as working capital for exploration and production operations. As of June 30, 2012, $15,000,000 was outstanding under Voyager's Tranche A credit facility and $3,030,730 was outstanding under our Tranche B facility. As of June 30, 2012, $7.7 million was undrawn and available pursuant to an approved development plan.

On July 26, 2012, Voyager entered into an amended and restated credit agreement with Macquarie Bank to expand the existing availability and outstanding balance under its existing credit facility. In addition to the $20.2 million of debt obligations related to the July 26, 2012 acquisition of Emerald Oil Inc. ("Emerald Oil") that remain outstanding through existing agreements, the Company obtained additional availability from its credit facility and drew $15 million of additional debt on a new third tranche at an initial rate of 9% above the applicable London Interbank Borrowing Rate (LIBOR) and has the potential to draw a maximum of $20 million. The $15 million drawn was used for existing development activities. The new tranche matures on November 15, 2012 while Tranche A and Tranche B maintain the original maturity date of February 10, 2015. Tranche B is uncommitted; however, Macquarie Bank may, in its sole discretion and subject to an approved revised development plan and the satisfaction of certain conditions, commit additional funds under Tranche B.

Impairment of Oil and Gas Properties

We follow the full cost method of accounting for oil and natural gas operations whereby all costs related to the exploration and development of oil and natural gas properties are initially capitalized into a single cost center ("full cost pool"). Capitalized costs (net of related deferred income taxes) are limited to a ceiling based on the present value of future net revenues using the 12-month unweighted average of first-day-of-the-month price (the "12-month average price"), discounted at 10%, plus the lower of cost or fair market value of unproved properties. If the ceiling is not greater than or equal to the total capitalized costs, then we are required to write down capitalized costs to the ceiling. We perform this ceiling test calculation each quarter. Any required write downs are included in the condensed statements of operations as an impairment charge. We recognized an impairment expense in the three- and six-month periods ended June 30, 2012 in the amount of $10,191,234. Included in the full cost pool at June 30, 2012 were costs incurred in 2010 and 2011 associated with the Company's interest in the Niobrara development program in the Denver-Julesburg Basin. We incurred approximately $23.6 million in development costs to acquire acreage and develop the program, with insufficient oil and natural gas reserves established as a result of the development in the third-party reserve engineer's reserve report to offset the costs of the development program. While the costs were incurred in 2010 and 2011, we did not fail the ceiling test until June 30, 2012. The failure was primarily due to a decrease in the 12-month average commodity price and an increase in the local differential to NYMEX West Texas Intermediate on Williston Basin properties on the June 30, 2012 reserve report compared to March 31, 2012 and December 31, 2011 reserve reports. We did not recognize any impairment expense in the three- and six-month periods ended June 30, 2011.

Recent Well Completions

The following table illustrates certain recent well completions in which Voyager has participated with a working interest during the second quarter of 2012, listing all wells added to production with a working interest of at least 1.5%:

           
Well Name Operator County, ST Working Interest (1) BOPD IP Rate (2) Note (3)
Berger 156-100-7-6-1H Liberty Williams, ND 21.02% 2,719 B
Schnitzler 34-24 TFH Whiting Roosevelt, MT 12.50% 200 B
Moe 29-32-162-100H1CN Baytex Divide, ND 12.50% 78 A
Sylte Mnrl T 157-101-25B-36-1H Petro-Hunt Williams, ND 12.50% 490 A
Ingerson 2-12-1H Cornerstone Burke, ND 12.50% *** C
Hunter 1-H 17-20 Continental Williams, ND 8.64% 683 A
Inga 150-99-11-2-2H Newfield McKenzie, ND 8.33% 1,876 A
Inga 150-99-11-2-3H Newfield McKenzie, ND 8.33% 1,654 A
Inga 150-99-11-2-10H Newfield McKenzie, ND 8.33% 1,023 A
A & B 1-30-31H G3 Williams, ND 7.43% 626 A
Johnson 43-27 ENH Denbury Dunn, ND 6.87% 1,105 A
Chrome 155-99-18-19-1H Continental Williams, ND 6.61% 512 A
Abercrombie 1-10H Continental Richland, MT 6.25% 630 B
McClintock 1-1H Continental Williams, ND 3.21% 929 B
Hoidahl 1-16H Continental Divide, ND 3.13% 537 B
Larsen 32-29 #1H Zavanna McKenzie, ND 3.13% 682 A
Johnson 43-27 WNH Denbury Dunn, ND 2.34% 939 A
Bouchard 34-21H Fidelity Richland, MT 2.24% 133 B
GO-Kupper 157-96-0805H-1 Hess Williams, ND 1.56% 592 A
           
           
 (1) The working interests are based on Voyager'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) The initial production rate ("IP Rate") for each well expressed in barrels of oil per day ("BOPD") and does not include associated natural gas production. Initial production is generally the 24-hour "Peak Production Rate" that may be measured following the initial day of production, depending on operator procedure or well profiles, although the calculation may vary from operator to operator. The IP Rate may be estimated based on other third-party estimates or limited data available at the time.
   
 (3) NOTE: A) IP Rate obtained from North Dakota Industrial Commission ("NDIC"). B) IP Rate was not reported by the operator to the NDIC. Voyager estimated an IP Rate based on the highest single day production over the first 30 days if available. This estimate may or may not reflect the IP Rate calculated by the operator. C) IP Rate not provided by operator. Voyager did not receive individual daily production from the operator and was not able to calculate an estimated IP Rate.
   

Current Drilling Activity

The following table illustrates the 30 gross (1.10 net) wells in the Bakken or Three Forks formations drilling, awaiting completion or completing in which Voyager is participating with a working interest as of June 30, 2012:

         
Well Name Operator County, State Working Interest (1) Status
Orcas State 5601 13-16H Oasis Williams, ND 9.38% Awaiting Completion
Horse Creek Federal 5004 42-35H Oasis McKenzie, ND 9.37% Awaiting Completion
Longhorn 9-4-158-99H Samson Williams, ND 6.25% Awaiting Completion
Salsbury 24-35-1H Whiting Richland, MT 6.25% Awaiting Completion
Wolverine Federal #1-31-30H Slawson McKenzie, ND 6.10% Awaiting Completion
Randy Olson 8-5-161-98H 1PB Baytex Divide, ND 5.16% Awaiting Completion
Bogner 13-20H SM Energy Stark, ND 4.47% Awaiting Completion
Mott 1-16H Continental Richland, MT 3.25% Awaiting Completion
Bakke 1-17H Continental Divide, ND 3.13% Awaiting Completion
Polar Vance 154-97-2-17-5-5H Kodiak Williams, ND 1.83% Awaiting Completion
Hatchet Federal #1-23-14H Slawson McKenzie, ND 1.30% Awaiting Completion
Schmidt 5602 42-10H Oasis Williams, ND 1.25% Awaiting Completion
TAT 13-35-26H Helis McKenzie, ND 0.27% Awaiting Completion
Mae 5603 43-19H Oasis Williams, ND 0.02% Awaiting Completion
Ross-Alger 6-7 #2TFH Brigham Mountrail, ND 7.71% Drilling
Gullikson 152-103-31-30-1H Liberty McKenzie, ND 6.26% Drilling
Wolverine Federal #4-31-30TFH Slawson McKenzie, ND 6.10% Drilling
O Bach 29-32H Fidelity Stark, ND 5.47% Drilling
BW-Erler 149-99-1522H-1 Hess McKenzie, ND 4.73% Drilling
Mary Sveet 34-21H Marathon Williams, ND 4.38% Drilling
CPEUSC Clermont 18-19-158N-100W Crescent Point Williams, ND 3.09% Drilling
AV-A And S Trust 162-94-17H-1 Hess Burke, ND 2.92% Drilling
Shepherd 5501 12-5H Oasis Williams, ND 2.59% Drilling
Hardscrabble 3-3328H EOG Williams, ND 2.25% Drilling
Taylor 14-23 #1H Brigham McKenzie, ND 1.88% Drilling
Sherri 2658 43-9H Oasis Richland, MT 1.56% Drilling
Tobacco Garden 31-29 SEH Denbury McKenzie, ND 1.42% Drilling
Davies 1-20H Continental Richland, MT 0.94% Drilling
Pederson #1-18-19H G3 Williams, ND 0.40% Drilling
State 154-102-25-36-1H Triangle Williams, ND 0.16% Drilling
         
         
(1) The working interests are based on Voyager'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.
 

Non-GAAP Financial Measures

Adjusted EBITDA

In addition to reporting net income (loss) as defined under GAAP, we also present net earnings before interest, income taxes, depreciation, depletion, and amortization, accretion of discount on asset retirement obligations, impairment of oil and natural gas properties, unrealized gain (loss) from mark-to-market on commodity derivatives and non-cash expenses relating to share based payments recognized under ASC Topic 718 ("adjusted EBITDA"), which is a non-GAAP performance measure. Adjusted EBITDA consists of net earnings after adjustment for those items described in the table below. Adjusted EBITDA does not represent, and should not be considered an alternative to GAAP measurements, such as net income (loss) (its most directly comparable GAAP measure), and our calculations thereof may not be comparable to similarly titled measures reported by other companies. By eliminating the items described below, we believe the measure is useful in evaluating its fundamental core operating performance. We also believe that adjusted EBITDA is useful to investors because similar measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies in similar industries. Our management uses adjusted EBITDA to manage our business, including in preparing our annual operating budget and financial projections. Our management does not view adjusted EBITDA in isolation and also uses other measurements, such as net income (loss) and revenues to measure operating performance. The following table provides a reconciliation of net income (loss) to Adjusted EBITDA for the periods presented:

       
    Three Months Ended  
    Jun. 30,     Mar. 31,     Dec. 31,     Sep. 30,   Jun. 30,  
    2012     2012     2011     2011   2011  
                                       
Net income (loss)   $ (6,960,908 )   $ (256,370 )   $ (46,097 )   $ 55,874   $ (465,057 )
Impairment of oil and natural gas properties     10,191,234       -       -       -     -  
Interest expense     169,445       515,790       525,616       508,841     506,096  
Accretion of asset retirement obligation     3,423       2,567       1,576       1,717     1,328  
Depreciation, depletion and amortization     3,171,512       2,009,129       1,264,437       1,335,620     568,469  
Stock-based compensation expense     400,152       327,725       167,434       151,343     153,030  
Unrealized (gain) loss on commodity derivatives     (2,162,975 )     884,892       -       -     -  
Adjusted EBITDA   $ 4,811,883     $ 3,483,733     $ 1,912,966     $ 2,053,395   $ 763,866  
                                       

Adjusted Income

In addition to reporting net income (loss) as defined under GAAP, we also present net earnings before the impairment of oil and natural gas properties and the effect of unrealized gain (loss) from mark-to-market on commodity derivatives ("adjusted income"), which is a non-GAAP performance measure. Adjusted income consists of net earnings after adjustment for those items described in the table below. Adjusted income does not represent, and should not be considered an alternative to GAAP measurements, such as net income (loss), and our calculations thereof may not be comparable to similarly titled measures reported by other companies. By eliminating the items described below, we believe the measure is useful in evaluating our fundamental core operating performance. We also believe that adjusted income is useful to investors because similar measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies in similar industries. Our management uses adjusted income to manage our business, including in preparing our annual operating budget and financial projections. Our management does not view adjusted income in isolation and also uses other measurements, such as net income (loss) and revenues to measure operating performance. The following table provides a reconciliation of net income (loss), to adjusted income for the periods presented:

           
  Three Months Ended June 30,     Six Months Ended June 30,  
  2012     2011     2012     2011  
Net loss $ (6,960,908 )   $ (465,057 )   $ (7,217,278 )   $ (1,354,831 )
Impairment of oil and natural gas properties   10,191,234       -       10,191,234       -  
Unrealized gain on commodity derivatives   (2,162,975 )     -       (1,278,083 )     -  
Adjusted income (loss) $ 1,067,351     $ (465,057 )   $ 1,695,873     $ (1,354,831 )
Adjusted income (loss) per share - basic $ 0.02     $ (0.01 )   $ 0.03     $ (0.02 )
Adjusted income (loss) per share - diluted $ 0.02     $ (0.01 )   $ 0.03     $ (0.02 )
Weighted average shares outstanding - basic   57,994,582       57,379,515       57,927,550       54,753,703  
Weighted average shares outstanding - diluted   58,814,046       57,379,515       58,856,127       54,753,703  
                               

Derivative Instruments and Price Risk Management

The Company utilizes commodity costless collars (purchased put options and written call options) to (i) reduce the effects of volatility in price changes on the oil commodities it produces and sells, (ii) reduce commodity price risk and (iii) provide a base level of cash flow in order to assure it can execute at least a portion of its capital spending.

All derivative positions are carried at their fair value on the condensed balance sheet and are marked-to-market at the end of each period. Both the unrealized and realized gains and losses resulting from the contract settlement of derivatives are recorded in the loss on derivatives line on the condensed statement of operations.

Costless collars are used to establish floor and ceiling prices on anticipated oil and natural gas production. There were no premiums paid to or received by the Company related to the costless collar agreements. The following table reflects open costless collar agreements as of June 30, 2012.

             
Term   Oil (Barrels)   Price   Basis
Costless Collars            
April 1, 2012 - February 28, 2015   225,542   $90.00-$103.50   NYMEX
             

On July 26, 2012, in conjunction with the closing of the amended and restated credit agreement with MBL, the Company executed a NYMEX West Texas Intermediate crude oil derivative swap contract. The following table reflects the opened commodity swap contract with the associated volumes and fixed price.

     
    Fixed
Calendar Year Volumes (Bbls) Price
August - December 2012 51,136 $88.00
2013 73,370 $88.00
2014 48,742 $88.00
2015 6,404 $88.00
     

About Voyager Oil & Gas

Voyager is an exploration and production company focused primarily on acquiring acreage and developing wells in prospective shale oil plays in the continental United States. The Company's primary business is focused on properties in North Dakota and Montana targeting the Bakken and Three Forks shale oil formations. Voyager on a combined company basis following the acquisition of Emerald Oil owns an interest in approximately 200,000 net acres in the following areas:

  • approximately 43,600 core net acres targeting the Bakken and Three Forks shale oil formations in North Dakota and Montana;
  • approximately 45,000 net acres in a joint venture in the Sandwash Basin Niobrara shale oil play, located in Mofatt and Routt Counties, Colorado and Carbon County, Wyoming;
  • approximately 33,500 net acres in a joint venture targeting the Heath shale oil formation in Musselshell, Petroleum, Garfield and Fergus Counties of Montana;
  • approximately 2,400 net acres in the Denver-Julesburg Basin targeting the Niobrara shale oil formation in Colorado and Wyoming; and
  • approximately 74,700 net acres in a joint venture in and around the Tiger Ridge natural gas field in Blaine, Hill and Chouteau Counties of Montana.

For additional information, visit Voyager's website at: http://www.voyageroil.com/. Sign up for email alerts at: http://www.VYOG-IR.com to be notified when news items are released by Voyager. 

Forward-Looking Statements

Certain statements included in this news release contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. We caution you that assumptions, expectations, projections, intentions, plans, beliefs or similar expressions used to identify forward-looking statements about future events may, and often do, vary from actual results and the differences can be material from those expressed or implied in such forward looking statements. Some of the key factors that could cause actual results to vary from those we expect include, without limitation, volatility in commodity prices for crude oil and natural gas, access to capital markets and the condition of the capital markets generally, as well as ability to access them, the timing of planned capital expenditures, unanticipated cash flow restrictions, uncertainties in estimating reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. We assume no obligation and expressly disclaim any duty to update the information contained herein except as required by law.

   
VOYAGER OIL & GAS, INC.  
CONDENSED BALANCE SHEETS  
(UNAUDITED)  
   
    June 30,
2012
    December 31,
2011
 
ASSETS            
CURRENT ASSETS                
  Cash and Cash Equivalents   $ 4,113,794     $ 13,927,267  
  Trade Receivables     7,529,588       3,247,412  
  Fair Value of Commodity Derivatives     609,147       -  
  Prepaid Expenses     188,151       48,330  
      Total Current Assets     12,440,680       17,223,009  
PROPERTY AND EQUIPMENT                
  Oil and Natural Gas Properties, Full Cost Method                
    Proved Oil and Natural Gas Properties     102,678,532       60,425,243  
    Unproved Oil and Natural Gas Properties     31,211,108       32,180,217  
  Other Property and Equipment     177,735       176,238  
      Total Property and Equipment     134,067,375       92,781,698  
  Less - Accumulated Depreciation, Depletion and Amortization     (20,877,163 )     (5,505,288 )
      Total Property and Equipment, Net     113,190,212       87,276,410  
  Prepaid Drilling Costs     36,742       33,163  
  Fair Value of Commodity Derivatives     668,936       -  
  Debt Issuance Costs, Net of Amortization     427,879       306,839  
      Total Assets   $ 126,764,449     $ 104,839,421  
LIABILITIES AND STOCKHOLDERS' EQUITY                
CURRENT LIABILITIES                
  Accounts Payable   $ 35,457,693     $ 10,375,239  
  Accrued Expenses     29,425       206,122  
      Total Current Liabilities     35,487,118       10,581,361  
LONG-TERM LIABILITIES                
  Revolving Credit Facility     18,030,730       -  
  Senior Secured Promissory Notes     -       15,000,000  
  Asset Retirement Obligations     198,293       116,119  
      Total Liabilities     53,716,141       25,697,480  
                 
COMMITMENTS AND CONTINGENCIES     -       -  
                 
SSTOCKHOLDERS' EQUITY                
  Preferred Stock - Par Value $.001; 20,000,000 Shares Authorized;None Issued or Outstanding     -       -  
  Common Stock, Par Value $.001; 200,000,000 Shares Authorized, 58,468,428 and 57,848,428 Shares Issued and Outstanding, respectively     58,468       57,848  
  Additional Paid-In Capital     88,081,199       86,958,174  
  Accumulated Deficit     (15,091,359 )     (7,874,081 )
      Total Stockholders' Equity     73,048,308       79,141,941  
      Total Liabilities and Stockholders' Equity   $ 126,764,449     $ 104,839,421  
                       
                       
                       
VOYAGER OIL & GAS, INC.  
CONDENSED STATEMENTS OF OPERATIONS  
(UNAUDITED)  
   
    Three Months Ended June 30,     Six Months Ended June 30,  
    2012     2011     2012     2011  
REVENUES                                
Oil and Natural Gas Sales   $ 6,763,429     $ 1,666,535     $ 11,861,762     $ 2,499,156  
Gain on Commodity Derivatives     2,251,543       -       1,339,108       -  
      9,014,972       1,666,535       13,200,870       2,499,156  
OPERATING EXPENSES                                
Production Expenses     484,829       148,335       951,459       198,313  
Production Taxes     728,588       167,417       1,234,609       247,381  
General and Administrative Expenses     1,215,218       706,617       2,157,349       1,400,931  
Depletion of Oil and Natural Gas Properties     3,160,368       560,344       5,158,427       968,328  
Impairment of Oil and Natural Gas Properties     10,191,234       -       10,191,234       -  
Depreciation and Amortization     11,144       8,125       22,214       8,912  
Accretion of Discount on Asset Retirement Obligations     3,423       1,328       5,990       1,589  
Total Expenses     15,794,804       1,592,166       19,721,282       2,825,454  
                                 
INCOME (LOSS) FROM OPERATIONS     (6,779,832 )     74,369       (6,520,412 )     (326,298 )
                                 
OTHER INCOME (EXPENSE)                                
Interest Expense     (169,445 )     (506,096 )     (685,235 )     (1,001,575 )
Other Income (Expense), Net     (11,631 )     (33,330 )     (11,631 )     (26,958 )
Total Other Expense, Net     (181,076 )     (539,426 )     (696,866 )     (1,028,533 )
                                 
LOSS BEFORE INCOME TAXES     (6,960,908 )     (465,057 )     (7,217,278 )     (1,354,831 )
                                 
INCOME TAX EXPENSE     -       -       -       -  
                                 
NET LOSS   $ (6,960,908 )   $ (465,057 )   $ (7,217,278 )   $ (1,354,831 )
                                 
Net Loss Per Common Share - Basic and Diluted   $ (0.12 )   $ (0.01 )   $ (0.12 )   $ (0.02 )
Weighted Average Shares Outstanding - Basic and Diluted     57,994,582       57,379,515       57,927,550       54,753,703  
                                 
                                 
                                 
VOYAGER OIL & GAS, INC.  
CONDENSED STATEMENTS OF CASH FLOWS  
(UNAUDITED)  
   
    Six Months Ended June 30,  
    2012     2011  
CASH FLOWS FROM OPERATING ACTIVITIES                
  Net Loss   $ (7,217,278 )   $ (1,354,831 )
  Adjustments to Reconcile Net Loss to Net Cash Provided By (Used For) Operating Activities:                
    Depletion of Oil and Natural Gas Properties     5,158,427       968,328  
    Impairment of Oil and Natural Gas Properties     10,191,234       -  
    Depreciation and Amortization     22,214       8,912  
    Amortization of Debt Discount     -       111,575  
    Amortization of Finance Costs     278,776       -  
    Accretion of Discount on Asset Retirement Obligations     5,990       1,589  
    Unrealized Gain on Derivative Instruments     (1,278,083 )     -  
    Share-Based Compensation Expense     727,877       409,769  
    Changes in Assets and Liabilities:                
      Increase in Trade Receivables     (4,282,176 )     (1,291,411 )
      Increase in Prepaid Expenses     (139,821 )     (47,959 )
      Increase (Decrease) in Accounts Payable     46,454       (365,434 )
      Decrease in Accrued Expenses     (176,697 )     (225,498 )
        Net Cash Provided By (Used For) Operating Activities     3,336,917       (1,784,960 )
CASH FLOWS FROM INVESTING ACTIVITIES                
  Purchases of Other Property and Equipment     (1,497 )     (152,349 )
  Prepaid Drilling Costs     (3,579 )     (727,017 )
  Proceeds from Sales of Available for Sale Securities     -       242,070  
  Investment in Oil and Natural Gas Properties     (15,776,228 )     (23,959,151 )
    Net Cash Used For Investing Activities     (15,781,304 )     (24,596,447 )
CASH FLOWS FROM FINANCING ACTIVITIES                
  Proceeds from Issuance of Common Stock - Net of Issuance Costs     -       46,602,251  
  Advances on Revolving Credit Facility and Term Loan     18,030,730       -  
  Payments on Senior Secured Promissory Notes     (15,000,000 )     -  
  Cash Paid for Finance Costs     (399,816 )     -  
  Proceeds from Exercise of Stock Options and Warrants     -       16,960  
    Net Cash Provided by Financing Activities     2,630,914       46,619,211  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     (9,813,473 )     20,237,804  
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD     13,927,267       11,358,520  
CASH AND CASH EQUIVALENTS - END OF PERIOD   $ 4,113,794     $ 31,596,324  
Supplemental Disclosure of Cash Flow Information                
  Cash Paid During the Period for Interest   $ 613,814     $ 900,000  
  Cash Paid During the Period for Income Taxes   $ -     $ -  
    Non-Cash Financing and Investing Activities:                
      Oil and Natural Gas Properties Property Accrual in Accounts Payable   $ 35,288,407     $ 4,079,967  
      Stock-Based Compensation Capitalized to Oil and Natural Gas Properties   $ 395,768     $ 134,216  
      Capitalized Asset Retirement Obligations   $ 76,184     $ 50,485  
                       

Contact Information

  • Contact:
    Voyager Oil & Gas, Inc.
    Marty Beskow
    Vice President of Finance / Capital Markets
    406-245-4901
    Email Contact