AUSTIN, Texas, Jan. 16 /PRNewswire-FirstCall/ -- Brigham Exploration
Company (Nasdaq: BEXP) announced its first three operated Mountrail County,
North Dakota Bakken wells as discoveries, acreage growth in Mountrail
County and extensional areas to approximately 67,500 net acres, a high
working interest Red River discovery in Sheridan County, Montana, and a new
Southern Louisiana joint venture.
SIGNIFICANT WELLS RECENTLY COMPLETED, COMPLETING, DRILLING OR PREPARING TO
DRILL
Resource Plays Objective WI% NRI Status / Comments
Hynek 2 #1H Bakken 97% 78% Successfully drilled and
completed at recent
peak 24 hour rate of ~585
Boepd up 7" casing,
running tubing
Bakke 23 #1H Bakken 88% 72% Successfully drilled and
completed at recent peak
24 hour rate of ~380
Boepd up 7" casing,
running tubing
Bergstrom Family
Trust 26 #1H Bakken 56% 43% Successfully drilled and
completed at recent peak
24 hour rate of ~202
Boepd up 4.5" casing,
running tubing
Hallingstad 27
#1H Bakken 48% 36% Drilling Mountrail Co. ND
Bakken well ~1 mile west
of Bergstrom @ depth of
~9,250'
Manitou State 36
#1H Bakken 100% 81% Planned February spud of
5th Mountrail Co. ND
horizontal Bakken well in
continuous drilling
program
Mrachek 15-22 1H Bakken 100% 79% Horizontally sidetracking
previously drilled
McKenzie Co. ND well @
15,600'
Krejci Fed.
#1-32H Mowry 50% 40% Currently drilling @
7,600' in lateral, plan
to utilize swell packers,
est. TD of 11,300'
Conventional Objective WI% NRI Status / Comments
Wells
Richardson
25 #1 Red River 90% 68% Discovery, commenced
production @ ~220 Boepd,
additional Red River
drilling planned on
100,000 net acres
Randall Unit #2 Frio 94% 74% Plugged and abandoned
after encountering thin
noncommercial Frio pay
Blue Heron #1 Oligocene 40% 29% Plugged and abandoned
after failing to
encounter commercial
hydrocarbon pay
Cary Sr. Estate
#1 Oligocene 40% 29% Currently drilling
@ ~13,000' to test 3-D
delineated fault trap
with shallow production,
est. total depth of
14,450'
Sullivan C-38 Vicksburg 100% 76% Planned late January
spud to attempt to extend
prolific Floyd Field to
the north, estimated
total depth of 14,000'
Chandeleur Sound
68 South Miocene 50% 38% Planned April spud of
amplitude test apparently
up dip to producer, the
1st in new multi well
S. LA joint venture
Williston Basin
Acreage Growth to 219,000 Net Acres with approximately 67,500 Net Acres
in Mountrail County & Extensional Areas -- Brigham has grown its acreage
position in the Williston Basin to approximately 219,000 net acres. Most of
the recent growth has occurred in Mountrail County and extensional areas
east of the Nesson Anticline where Brigham now controls approximately
67,500 net acres. In Mountrail County, approximately 5,500 net acres are
located in the Parshall Field area, and approximately 25,000 net acres are
located generally between the Parshall Field and the Nesson Anticline.
Approximately 37,000 net acres are located in undisclosed extensional areas
to the east of the Nesson Anticline, but not necessarily in Mountrail
County. To the west of the Nesson Anticline in McKenzie and Williams
Counties, North Dakota, Brigham controls Bakken rights on approximately
51,500 net acres. In eastern Montana, where Brigham drilled its recent Red
River discovery, Brigham controls all rights on roughly 100,000 net acres
in Sheridan and Roosevelt Counties.
Mountrail County North Dakota Bakken Completions -- Brigham
successfully drilled and completed its first three operated Mountrail
County horizontal Bakken wells. The first was the Bergstrom Family Trust 26
#1H, which subsequent to fracture stimulation produced at an early peak 24
hour rate of approximately 202 Boe per day up 4.5" casing. Brigham is
currently installing 2 & 7/8" production tubing for further testing and
production. Northern Oil and Gas, Inc. (OTC Bulletin Board: NOGS) also
participated in the Bergstrom Family Trust 26 #1H with a 6.25% working
interest, which increases to a 23% working interest after payout. The
Bergstrom Family Trust 26 #1H is located approximately 6.5 miles northeast
of the Parshall Field, and approximately 6 miles southeast of EOG's Austin
#1-02H and the Austin #2-03H discoveries.
Approximately 25 miles to the northwest of the Bergstrom Family Trust
26 #1H, Brigham successfully drilled and completed the Hynek 2 #1H. The
Hynek 2 #1H produced at an early peak 24 hour rate of approximately 585 Boe
per day up 7" casing. Brigham is currently running 2 & 7/8" production
tubing for further testing and production.
Brigham successfully drilled and completed the Bakke 23 #1H, which
subsequent to fracture stimulation produced at an early peak 24 hour rate
of approximately 380 Boe per day up 7" casing. Brigham is preparing to
install 2 and 7/8" production tubing for further testing and production.
The Bakke 23 #1H is located approximately 6 miles east of the Hynek 2 #1H,
12 miles west of EOG's recently announced Austin #1-02H completion, and
approximately 20 miles northwest of Brigham's Bergstrom Family Trust 26
#1H.
Brigham is currently drilling its fourth Mountrail County horizontal
Bakken well, the Hallingstad 27 #1H, in the lateral section at a current
depth of approximately 9,250', with results expected in late February or
March. Northern Oil and Gas, Inc. (OTC Bulletin Board: NOGS) is also
participating in the Hallingstad 27 #1H well. The Hallingstad 27 #1H is
located approximately one mile west of the Bergstrom Family Trust 26 #1H
well. After completing the Hallingstad 27 #1H, Brigham plans to move the
rig to a location proximal to the Hynek 2 #1H to drill the Manitou State 36
#1H. Brigham currently plans to keep this operated rig running continuously
to drill horizontal Bakken wells in North Dakota.
Bud Brigham, the Chairman, President and CEO stated, "We're very
excited to have three apparently commercial discoveries with our first
three operated horizontal Bakken wells in Mountrail County. It's early
however, and we could potentially see stronger production rates once we've
installed the production tubing. At this point, we believe the results
indicate that all three wells should provide attractive economic returns,
though it appears that the Bakke 23 #1H and the Hynek 2 #1H are likely to
be the better producers. The subsequent flow rates and pressures for the
Bakke 23 #1H are particularly strong. In areas proximal to the Bakke 23 #1H
and the Hynek 2 #1H, we control approximately 25,000 net acres, which
positions us to potentially drill 39 to 78 net wells in the area, assuming
ultimate spacing of 640 or 320 acres, respectively."
Bud Brigham continued, "It's also important to point out that we've
drilled and completed our two most recent wells, the Hynek 2 #1H and the
Bakke 23 #1H, for a total cost of approximately $4.5 million each, relative
to the roughly $5.2 million completed well cost for our Bergstrom Family
Trust 26 #1H. We believe that with scaled development an average completed
well cost of $4.5 million, or less, should be achievable, and that we have
a very exciting opportunity to generate outstanding returns on our drilling
investments in this play. Given these results, and given our very
substantial acreage position throughout the play, we expect to be
continuously drilling Bakken wells during 2008. In addition to our planned
rig line of operated wells, we have significant acreage directly offsetting
other producers recently completed in the area, such as the EOG Austin
discoveries. Given the apparent acceleration of drilling by the other
operators in the area we expect to also drill numerous non-operated
horizontal Bakken wells during 2008."
Red River Discovery, Sheridan County, Montana -- Brigham successfully
drilled and completed the Richardson 25 #1 as a Red River discovery, which
commenced production flowing at an initial rate of approximately 220
barrels of oil equivalent per day, with good pressures and without water
production. The Richardson 25 #1 was a vertical exploration test requiring
conventional completion procedures and was drilled for a total cost of
approximately $2.4 million. Brigham operated the Richardson 25 #1 with a
90% working interest, with Northern Oil and Gas (OTC Bulletin Board: NOGS)
participating with a 9.7% working interest, which increases to a 36.7%
working interest after payout. Brigham plans to commence its next Red River
test in April.
Bud Brigham stated, "We drilled our first Red River discovery in this
area in 1997, which to date has produced over 255,000 barrels, and which
should ultimately produce approximately 346,000 barrels of oil equivalent.
Based on production tests and early production rates the Richardson appears
to be a stronger well. This discovery is significant in that we believe
we've developed key seismic attributes that are effective for exploring for
the Red River, and because we have roughly 100,000 net acres in this
portion of Montana. In addition to the Red River, this acreage is
prospective for the Bakken, as well as other objectives. We also have
roughly 135 square miles of 3-D seismic data, with additional 3-D
acquisitions planned, and a current inventory of 16 prospects and leads
targeting the Red River. As we acquire and interpret additional 3-D seismic
data over our acreage during the course of 2008 we expect this inventory to
grow. We plan to spud our next Red River test in April, and expect to drill
additional wells in this area during 2008, at least one of which is likely
to target the Bakken."
Southern Louisiana
Southern Louisiana Joint Venture -- Brigham has entered into a joint
venture to operate the drilling of six wells in Southern Louisiana with a
50% working interest. The five prospects planned for 2008 will target 3-D
delineated, primarily amplitude related prospects at depths of 9,000 to
10,500 feet in Plaquemines and Saint Bernard Parishes. The first of these,
the Chandeleur Sound 68 South, located in Saint Bernard Parish, is expected
to commence in April, targeting a 3-D seismic delineated Miocene bright
spot amplitude that offsets an apparently structurally lower productive
well.
Bud Brigham stated, "As evidenced by our successful prior joint venture
at Bayou Postillion, our core technical and operational competencies are
very well suited for Southern Louisiana. These are very high quality,
relatively shallow 3-D delineated prospects. We estimate our net risked dry
hole cost for the six prospects at roughly $18 million, and the prospects
provide an estimated gross unrisked reserve potential of approximately 127
Bcfe. We're very excited about this joint venture, and see it another
important step in growing our reserves and production in Southern
Louisiana."
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 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
| |
SOURCE Brigham Exploration Company
 back to top
Related links:
http://www.bexp3d.com
CONTACT:
Rob Roosa, Finance Manager of Brigham
Exploration Company, +1-512-427-3300
| |
|
