AUSTIN, TX -- (MARKET WIRE) -- 05/06/08 -- Brigham Exploration Company (NASDAQ: BEXP)
announced the acquisition of approximately 48,000 additional net acres of
leasehold west of the Nesson Anticline in the Williston Basin Bakken play,
bringing its acreage holdings in the Basin to approximately 287,000 net
acres. The company also announced that completion operations are underway
on its fifth Mountrail County horizontal Bakken well, and that it is
currently drilling its first well in its North Stanley extensional area.
Brigham also announced the apparently successful drilling of its second
2008 Vicksburg well, with its third Vicksburg well currently drilling.
SIGNIFICANT WELLS RECENTLY COMPLETED, COMPLETING, DRILLING OR PREPARING TO
DRILL
Williston Basin
Acreage Growth to approximately 287,000 Net Acres -- Brigham has acquired
the rights to approximately 48,000 net acres of additional leasehold west
of the Nesson Anticline. Brigham purchased the leasehold from a private
operator in the trend. As a result, Brigham now controls approximately
199,000 net acres of leasehold west of the Nesson Anticline, in western
North Dakota and Eastern Montana. To the east, in Mountrail County, North
Dakota and the surrounding area, Brigham controls over 88,000 net acres.
In total, Brigham now controls approximately 287,000 net acres in the
Williston Basin, with additional leasing activity ongoing.
Bud Brigham, the Chairman, President and CEO, stated, "We're very pleased
to have acquired this substantial leasehold position as it provides very
substantial potential option value for our shareholders. We expect the
improved drilling and completion techniques we're utilizing east of the
Nesson Anticline to positively impact the economics of our acreage in the
western portions of the Basin. Importantly, the 48,000 net acres provides
us with the right to explore all potential producing objectives, including
the shallower Madison and Mission Canyon, as well as the deeper Red River.
In addition to the currently completing Mrachek 15-22 1H, we believe it's
likely we will drill at least one additional horizontal Bakken well west of
the Nesson Anticline during the second half of the year, with significant
activity anticipated for 2009."
Mountrail County and Extensional Area Operated Activity -- Brigham
successfully drilled and is currently completing its fifth operated
Mountrail County horizontal Bakken well, the Manitou State 36 #1H. The
Manitou State 36 #1H is located approximately one mile northeast of the
Brigham operated Hynek 2 #1H and approximately five miles northwest of the
Brigham operated Bakke 23 #1H. Results for the Manitou State 36 #1H are
expected in late May.
Following the Manitou State 36 #1H, in April Brigham commenced the Johnson
33 #1H in the North Stanley area, which is approximately 16 miles north
northwest of the Bakke 23 #1H, and where Brigham controls approximately
5,800 net acres. The Johnson 33 #1H is bracketed to the west and northwest
by Fidelity and St. Mary drilling rigs and permits, and to the east and
north by the EOG Clearwater and Vanville permits. The Johnson 33 #1H is
currently drilling with good shows in the lateral section, with results
expected in June.
In early June, Brigham plans to commence its fourth Ross Area well, the
Carkuff 22 #1H, which will be followed by its fifth Ross Area well, a south
offset to the Bakke 23 #1H. Brigham controls over 27,000 net acres in the
Ross Area. Assuming full development on 640 acre spacing, the Ross Area
could require over 100 gross, or 42 net wells for full development.
In August, Brigham plans to commence the first well in its south
extensional area, where the company controls over 36,000 net acres.
Brigham currently plans to keep this operated rig running continuously to
drill horizontal Bakken wells in North Dakota.
Parshall/Austin Area Non-Operated Bakken Drilling Activity -- Brigham
controls approximately 8,700 net acres in the Parshall/Austin area, which
provides for drilling over 13 net wells assuming 640 acre spacing. The
company will retain significant working interests in three recently
permitted Parshall/Austin area EOG wells proximal to recent high rate
Bakken completions. Brigham expects to retain a 25% working interest in
the EOG Austin 25-35H in section 35 of 154N-90W, which is expected to spud
in June. This well is a south offset to EOG's recently announced Austin
8-26H, which was reported to have commenced production at a rate of
approximately 3,060 barrels per day.
One mile to the southeast, Brigham also expects to retain a 25% working
interest in the recently permitted EOG operated Wayzetta 13-01H in section
1 of T153N-R90W. The EOG Wayzetta 13-01H is reportedly expected to
commence in August.
Approximately four miles to the west, EOG has permitted the Austin 22-31H
in section 31 of 154N-90W, which is expected to commence in October.
Brigham expects to retain an approximate 25% working interest in this well,
which is roughly one mile east of the Murex Jacob Daniel 25-36H in section
36 of 154N-91W. The Jacob Daniel was reported to be producing
approximately 750 barrels of oil per day after having already produced
roughly 17,000 barrels, with a reported estimated ultimate recovery of over
1 million barrels of oil.
Brigham has additional ownership interests in five sections offsetting
three of EOG's discoveries drilled in sections 2, 3 and 9 of 154N-90W. As
reported by EOG, these discoveries apparently produced at initial rates of
approximately 2,000 barrels of oil per day. Brigham's working interests in
the five potential wells is expected to range between 1.6% and 12.5%.
Bud Brigham stated, "Given continued drilling successes and accelerating
activity by EOG and other operators in the Parshall/Austin area, we expect
to participate in a significant number of non-operated wells during the
second half of 2008 and into 2009. In addition, our operated rig line is
continuing with the Johnson 33 #1H well in our North Stanley area, which is
an important test for us. Subsequent to drilling the Johnson 33 #1H, we'll
drill two wells to further delineate and develop our Ross Area, where we
could ultimately drill over 42 net wells on our approximate 27,000 net
acres, assuming 640 acre spacing. Given that operators have drilled
approximately two laterals per section thus far in the Elm Coulee Bakken
Field in Montana, we believe there is excellent potential for higher
density development of our Ross and Parshall/Austin areas."
Vicksburg Development Drilling -- Brigham recently completed its first 2008
Vicksburg well, the Floyd Fault Block Sullivan C-38, at an initial rate of
approximately 3.2 MMcfe per day. Brigham is currently completing its
second 2008 Vicksburg well, the Home Run Field Sullivan C-39, which
encountered approximately 137 feet of apparent net pay. Brigham is
currently drilling its third 2008 Vicksburg well, the Triple Crown Field
Sullivan F-35, with results expected by late May.
Bud Brigham stated, "After an eight month gap in Vicksburg completions to
reprocess and reinterpret our 3-D seismic, we're pleased to have kicked off
our 2008 Vicksburg program with two apparently successful wells. Although
these wells will only partially impact our second quarter production
volumes, all three wells should fully impact our third quarter volumes."
About Brigham Exploration
Brigham Exploration Company is a leading independent exploration and
production company that applies 3-D seismic imaging and other advanced
technologies to systematically explore and develop onshore domestic natural
gas and oil provinces. For more information about Brigham Exploration,
please visit our website at www.bexp3d.com or contact Investor Relations at
512-427-3444.
Forward-Looking Statement Disclosure
Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements within the
meaning of the federal securities laws. Important factors that could cause
our actual results to differ materially from those contained in the
forward-looking statements include our growth strategies, our ability to
successfully and economically explore for and develop oil and gas
resources, anticipated trends in our business our liquidity and ability to
finance our exploration and development activities market conditions in
the oil and gas industry our ability to make and integrate acquisitions,
the impact of governmental regulation and other risks more fully described
in the company's filings with the Securities and Exchange Commission.
Forward-looking statements are typically identified by use of terms such as
"may," "will," "expect," "anticipate," "estimate" and similar words,
although some forward-looking statements may be expressed differently. All
forward-looking statements contained in this release, including any
forecasts and estimates, are based on management's outlook only as of the
date of this release, and we undertake no obligation to update or revise
these forward-looking statements, whether as a result of subsequent
developments or otherwise.
Contact:
Rob Roosa
Finance Manager
(512) 427-3300