Brigham Exploration Announces Discoveries and Provides Operational Update
04 August 2006 - 2:24AM
PR Newswire (US)
AUSTIN, Texas, Aug. 3 /PRNewswire-FirstCall/ -- Brigham Exploration
Company (NASDAQ:BEXP) announced drilling discoveries, the
successful completion of its first Bakken well in North Dakota, and
provided an operational update. SIGNIFICANT WELLS RECENTLY
COMPLETED, COMPLETING, DRILLING OR PREPARING TO DRILL Well
Objective Category WI% NRI Status / Comments Field 18-19 1-H Bakken
Exp 100% 79% Completed @ early rate of 200 Bopd, currently 105
Bopd, install tubing & pump State Tract 109 #1 Lwr Frio Exp 75%
55% Completing Turtle Ridge test with approx. 60' apparent pay plus
73' potential pay Sullivan F-33 Vicksburg Dev 100% 76% Completing,
approximately 62' of 9800' sand pay, potential deeper pays Ivins
#1-19 Springer Dev 38% 30% Completing, ~60' apparent pay,
comparable to Hajek (initial rate of 2.5 MMcfed) Dawson #4
Vicksburg Dev 100% 76% Completed from 9800' sands at ~ 3.0 MMcfed,
"Brigham" sand behind pipe Derek #3 Douglas Dev 96% 77% Completing,
flowing back after stimulation, offsetting other producer Mills
Ranch #1-99S Hunton Dev 93% 63% Completed and currently producing
approximately 1.5 MMcfed Cotten Land #1 Oligocene Dev/Exp 41% 29%
Production tested @ ~10.1 MMcfed, sales expected in mid to late
September Kinder Canal Co. #1 Yegua,etc. Exp 33% 25% Drilling S.
Louisiana bright spot test (Plassey Prospect) @ 8600' with good
shows Erickson 8-17 1-H Bakken Exp 100% 79% Drilling 2nd horizontal
with good shows @ 18,000', expect to stimulate late August Krejci
#1 Mowry Exp 50% 40% Drilling 1st horizontal Mowry well @ 6,143',
completion expected late August Mills Ranch 96 #1 Hunton Dev 68%
56% Drilling @ 20,800' targeting Hunton @ 24,500', results expected
in September Sullivan C-33 Vicksburg Dev 100% 76% Preparing to spud
potentially high production rate Floyd Field development well
Kathyrn Dufrene #1 Cris I. Exp 25% 19% Preparing to spud S.
Louisiana Gambino test, results expected late September C.
Broadcasting #1 Yegua,etc. Exp 33% 24% Planned August spud of S.
Louisiana multi pay bright spot test (Leuthen Prospect) Mracheck
15-22 1-H Bakken Exp 100% 77% Planned August spud of 3rd of at
least three 2006 horizontal Bakken wells 20 Mi. Muddy/ Creek Fed.
#2 Dakota Exp 37.5% 30% Planned late August spud of 9,800' Niobrara
Co., WY conventional test Williams Land #1 Planulina Exp 59% 43%
Planned Sept. spud of high potential S. Louisiana well, results
expected in November Green Ranch #1 Lwr Frio Exp 75% 56% Planned
late September spud of high potential test, results expected in
November Rockies Plays Completion of First of Three Williston Basin
Horizontal Bakken Wells - Brigham has successfully completed its
first horizontal Bakken well, which subsequent to fracture
stimulation flowed at rates as high as 200 barrels of oil per day,
though the daily rate has declined to a current rate of
approximately 103 barrels of oil, 100 Mcf of natural gas and 60
barrels of water per day. Brigham anticipates eventually running
tubing and installing a rod pump, which Brigham believes should
increase the production rate for the well. Bud Brigham the
Chairman, President and CEO stated, "The Field 18-19 1-H confirms
the productivity of our Bakken acreage. Although it is early, we
believe that the results to date in the play, including our well
and other wells drilled in the area, indicate that the play will
likely, over the long term, hold meaningful net asset value for our
shareholders. As with any unconventional play, it will take some
time to learn how to optimize our drilling and completion
techniques, and we therefore expect the results to improve over
time. In the next few weeks, we'll reach total depth on the
Erickson 8-17 1-H, and we've scheduled a fracture stimulation for
this well later this month. Given the early encouragement in the
Bakken, as well as various other objectives, we've increased our
acreage position in the play to approximately 80,000 net acres."
Commencement of First of Four Powder River Basin Wells - Brigham is
currently drilling the Krejci #1 at a depth of approximately 6,143
feet, with plans to horizontally drill a 1,600 foot lateral in the
Mowry Shale at a depth of approximately 7,375 feet. Brigham expects
the Krejci to reach total depth in the next several weeks, with a
fracture stimulation of the well planned for late August. Brigham
operates the Krejci #1 with a 50% working interest, with American
Oil and Gas, Inc. (NASDAQ:AEZ) retaining most of the remaining
working interest. Subject to satisfying the terms of the joint
venture with American Oil and Gas, Brigham will hold over 31,000
net acres in the Mowry play, and with success over 150 net wells
could be drilled to fully develop the acreage. Gulf Coast Frio
Trend Apparent Lower Frio Exploration Discovery - Brigham is
currently completing the State Tract 109 #1, which encountered
approximately 60 feet of apparent Lower Frio pay, with an
additional 73 feet of potential pay that will likely be tested. The
well was drilled to test the Turtle Ridge Prospect, a Lower Frio
structure covering approximately 500 acres. Brigham expects to
begin production testing the well in mid-August. Brigham operates
the State Tract 109 #1 with a 75% working interest, with Royale
Energy, Inc. (NASDAQ:ROYL) as a participant with a 25% working
interest. Bud Brigham stated, "It appears that the State Tract 109
#1 should make a good well. Given the size of the structure and the
amount of potential pay, it could be a substantial discovery.
However, extended production testing of the various potential pay
intervals will be required to delineate the ultimate impact." Gulf
Coast Louisiana Miocene Trend Mystic Bayou, St. Martin Parish - By
late August, Brigham expects to commence the high reserve potential
Williams Land Company #1 well. The Williams Land Company #1 is
expected to test the Lower Planulina objective structurally high to
two wells that have combined to produce approximately 57 Bcfe to
date. Brigham retains an approximate 59% working interest in the
Williams Land Company #1, with Penn Virginia (NYSE:PVA) also
retaining a significant working interest in the well. Results are
expected in November. Bayou Postillion Project, Iberia Parish - In
May, Brigham production tested its first Bayou Postillion well, the
Cotten Land Corp. #1, at a rate of approximately 10.1 MMcfe per day
with strong flowing pressures. The Cotten Land #1 encountered
approximately 34 feet of apparent pay about 324 feet high to a down
dip producer. The down dip producer, which was completed in August
of 2005 at 10 MMcfe per day, almost one year later is continuing to
produce at roughly the same rate and to date has produced
approximately 3.1 Bcfe. The Cotten Land #1 is expected to be
producing to sales in mid to late September, with an estimated
initial production rate between 8 and 15 MMcfe per day. Bud
Brigham, the Chairman, President and CEO stated, "We continue to be
excited about our activities in the Bayou Postillion project,
though an earlier hook-up of the Cotten Land #1 would have
positively impacted our third quarter production volumes. We are
also excited to be commencing our first Mystic Bayou test, almost
two months earlier than previously anticipated. The Williams Land
Company #1 is one of the four high reserve potential wells we have
planned for the remainder of 2006. Gulf Coast Vicksburg Trend Third
Successful 100% Working Interest 2006 Vicksburg Completion -
Brigham recently completed the Triple Crown Field Dawson #4 well
from the 9800' sands at an initial rate of approximately 2.8 MMcf
of natural gas and 27 barrels of condensate (3.0 MMcfe) per day.
Approximately 70 feet of gross "Brigham" sand remains behind pipe.
This zone will likely be added to the production stream at a later
date. Brigham's 100% working interest is subject to a 16.5% working
interest back-in at payout and an additional 16.5% working interest
back-in at 200% payout. Fourth Apparently Successful 100% Working
Interest 2006 Vicksburg Well - The Sullivan F-33 encountered
approximately 62 feet of apparent net pay in the Upper Vicksburg
9800' sands. The well was subsequently drilled through the Loma
Blanca and Vicksburg '6' intervals with good drilling shows, to a
total depth of 13,600 feet. While tripping out to wire line log the
deeper intervals, the drill string became differentially stuck and
we are currently attempting to free the drill pipe to conduct
logging operations. Brigham expects to commence production testing
the Sullivan F-33 to sales by late August. Brigham's 100% working
interest is subject to a 16.5% working interest back-in at payout
and an additional 16.5% working interest back-in at 200% payout.
Planned August Commencement of 100% Working Interest Floyd Fault
Block Field Well - Brigham is preparing to commence the Sullivan
C-33 to further develop the Floyd Fault Block. Brigham will retain
a 100% working interest in the Sullivan C-33, subject to a 33%
working interest back-in after payout. Results are expected in
early October. Bud Brigham the Chairman, President and CEO stated,
"As we had anticipated, our Vicksburg drilling has provided
meaningful proved developed reserve additions and production growth
during 2006. We've roughly doubled our production in the Vicksburg
since early 2005. Looking forward, we are very excited to be
commencing a Floyd Fault Block test later this month. This well,
the Sullivan C-33, offsets the Sullivan #10, which produced at an
early rate of 15 MMcfe per day, is currently producing
approximately 6.6 MMcfe per day, and in 27 months has produced
approximately 7 Bcfe. Given that we've managed to increase our
working interest in the Sullivan C-33 to 100%, this well could
materially impact our production and reserves late in the year."
Anadarko Basin Hunton Trend Mills Ranch Field Update - Subsequent
to completion, the Mills Ranch #1-99S well commenced production in
early June 2006 at approximately 6.0 MMcfe per day and by mid-June
was producing approximately 2.5 MMcfe per day. Currently, the well
is producing approximately 1.5 MMcfe per day. Though the rate of
production decline has decreased significantly, it will take more
time to determine the long-term productivity of the well. In June,
it became apparent that the Mills Ranch 98-2 had developed an
apparent tubing leak. On July 1st, we commenced operations to pull
the tubing and remediate the well, but became stuck at a depth of
approximately 12,000 feet. We are currently above the stuck point
and are attempting to fish the remaining tubing from the well.
Prior to the apparent tubing leak in early June, the Mills Ranch
98-2 was producing approximately 3.3 MMcfe per day. 2006
OPERATIONAL STATISTICS Thus far in 2006, Brigham has spud 26 wells,
retaining an average working interest of approximately 61%.
Seventeen of these wells have been or are currently being
completed, three have been plugged and six are currently drilling.
Three additional wells are expected to commence in the next seven
days. Brigham's gross and net completion rate thus far in 2006 is
85% and 86%, respectively. Bud Brigham stated, "We believe that our
drilling during the first six months of the year, led by our
development drilling, easily more than replaced production with
proved developed reserves. Although development drilling dominated
our activity during the first six months of the year, the Field 18-
19 1-H Bakken discovery and the apparent and potentially
significant State Tract 109 #1 Frio discovery are the first of a
number of wells that could substantially add to our already deep
inventory of developmental drilling projects. Given the significant
high working interest wells awaiting hook-up to sales or
completing, and given our overall operational momentum, we expect
production volume growth to accelerate as we move through the
second half of 2006." 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 http://www.bexp3d.com/ or contact
Investor Relations at 512-427-3444. FORWARD LOOKING STATEMENTS
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
including 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 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 DATASOURCE: Brigham Exploration
Company CONTACT: Rob Roosa, Finance Manager of Brigham Exploration
Company, +1-512-427-3300 Web site: http://www.bexp3d.com/
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