Voyager O&G Touts 2010 Production Results
Voyager O&G announced strong acreage positions, oil and gas production and revenue growth for full year 2010. For the year, the Company reported oil and gas revenues of $942,840. Fourth quarter revenues were $493,000, representing sequential growth of 85.7% over the third quarter revenue figure of $265,000. Second to third quarter sequential revenue growth was 63.2%.
- Established production from 7 gross (0.74 net) wells in which it holds working interests. Production at December 31, 2010 approximated 120 barrels of oil per day.
- Drilled with a 100% success rate in 2010 with 18 Bakken and Three Forks wells completed or completing. The Company also had one successful Niobrara discovery at December 31, 2010.
- Purchased oil, gas and mineral leases totaling approximately 15,000 net mineral acres for an average of $650 per acre.
- Entered into an exploration and development agreement with Slawson Exploration Company, Inc. to develop Slawson's 48,000 net acres in the Denver-Julesberg Basin Niobrara Formation in Weld County, Colorado. Slawson has set surface casing for 22 wells that it expects to drill in 2011. Voyager purchased a 50% working interest in the approximately 48,000 acre block for $7.5 million and will participate on a heads-up basis on all wells drilled, as well as participate for its proportionate working interest in all additional acreage acquired in an area of mutual interest consisting of Weld and Laramie Counties.
- Had a cash balance of $11,358,520 at year-end.
- Voyager Oil & Gas was approved for listing on the NYSE Amex stock exchange under the symbol "VOG." Voyager's common stock was previously traded on the OTCBB.
- On February 8, 2011, the Company completed a private placement to accredited investors of 12,500,000 shares of common stock for net proceeds of $46.6 million. The Company also issued 6,250,000 warrants to subscribers of the private placement concurrently with the sale of shares, with an exercise price of $7.10, and a five year term from the date of the closing.
During the year ended December 31st, 2010, the Company reported oil production of 13,198 barrels and natural gas production of 3,489 McF for a total of 13,780 in barrel of oil equivalent. For the year, the average sales price of oil was $70.26 per barrel and natural gas was $4.44 per McF. This compares very favorably to the average production cost for oil of $9.87 per barrel and $0.21 per McF for natural gas. As of year-end 2010, the Company has seven gross wells and 0.74 net wells in which it holds working interests.
J.R. Reger, CEO commented, "2010 was an excellent first year for Voyager. We have achieved some significant milestones during the year, and look forward to continued strength and growth into 2011 and beyond. We will continue to focus on exploring for and developing oil with the leases that we control as well as continue to expand our acreage positions. In 2011 we expect to drill approximately six net Bakken/Three Forks wells, a minimum of six net Niobrara wells and we expect to continue our aggressive acreage expansion. Thanks to a strong balance sheet and proven operating strategy, we believe that we are well positioned to take advantage of opportunities in the marketplace as they develop."