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Monday, October 4, 2010

Bakken Stocks; Brigham Exploration Announces State 36-1 #2H Rough Rider Three Forks Well Early Production Rate of 2,356 BOEPD, Three High Rate Bakken Completions, Additional Acreage Acquisitions and Provides Operational Update

Bakken Stocks; Brigham Exploration Announces State 36-1 #2H Rough Rider Three Forks Well Early Production Rate of 2,356 BOEPD, Three High Rate Bakken Completions, Additional Acreage Acquisitions and Provides Operational Update

AUSTIN, TX--(http://www.investorideas.com/ energy stocks blog )  - October 4, 2010) -  Brigham Exploration Company (NASDAQ: BEXP) announced the completion of the State 36-1 #2H Rough Rider Three Forks well, its first Three Forks well west of the Nesson Anticline, at an early 24-hour peak flow back rate of approximately 2,356 barrels of oil equivalent. Brigham also announced three Bakken completions, including the Domaskin 30-31 #1H Ross project area well at an early 24-hour peak flow back rate of approximately 4,675 barrels of oil equivalent. As a result, Brigham has now completed 36 consecutive high frac stage long lateral Bakken and Three Forks wells in North Dakota with an average early 24-hour peak flow back rate of approximately 2,684 barrels of oil equivalent. In addition, Brigham announced the acquisition of additional leasehold covering approximately 10,200 net acres in the Williston Basin, approximately 7,600 of which is located in its core Rough Rider project area. Finally, Brigham provided an update on its drilling and completion activities in its core 205,600 net acres in the Williston Basin.
Rough Rider Three Forks High Rate Completion
In its Rough Rider project area in Williams County, North Dakota, Brigham announced the completion of the State 36-1 #2H Three Forks well, which was completed with 31 frac stages, at an early 24-hour peak flow back rate of approximately 2,356 barrels of oil equivalent (1,872 barrels of oil and 2.91 MMcf). The State 36-1 #2H represents Brigham's first Three Forks well completed west of the Nesson Anticline and based on publicly available information appears to represent a record Three Forks initial production rate west of the Nesson Anticline. The State 36-1 #2H represents Brigham's third Three Forks long lateral high frac stage completion. The two prior completions were east of the Nesson Anticline in Brigham's Ross project area and together averaged an early 24-hour peak flow back rate of 2,249 barrels of oil equivalent. Continued Three Forks success across its entire Rough Rider project area has the potential to add as many as 362 net drilling locations to Brigham's significantly de-risked development drilling inventory and could result in Brigham having an inventory of up to 933 net de-risked drilling locations within its current core acreage position. Brigham maintains an approximate 30% working interest in the State 36-1 #2H, which was completed with U.S. Energy Corp. (NASDAQ: USEG) as a working interest participant.
High Rate Ross Completion
In Mountrail County, North Dakota, Brigham announced the completion of the Domaskin 30-31 #1H, which was completed with 38 fracture stimulation stages, at an early 24-hour peak flow back rate of approximately 4,675 barrels of oil equivalent (4,106 barrels of oil and 3.42 MMcf). The Domaskin is located one mile to the west of the highest initial production rate Bakken well in the Williston Basin, the Brigham operated Sorenson 29-32 #1H, which was completed in April 2010 at an early 24-hour peak rate of 5,133 barrels of oil equivalent. Based on publicly available information, the Domaskin represents the fourth highest initial production rate Bakken well in the Williston Basin. Brigham has completed seven long lateral high frac stage Bakken wells in Ross at an average early 24-hour peak flow back rate of approximately 3,835 barrels of oil equivalent. Brigham maintains an approximate 65% working interest in the Domaskin. Also participating in the Domaskin is Lario Oil & Gas Company with a 12% working interest.
Acreage Acquisitions
Since early August 2010, Brigham has expanded its acreage position in the Williston Basin by approximately 10,200 net acres to an estimated 368,400 net acres. In its core Rough Rider project area, Brigham has expanded its acreage position by approximately 7,600 net acres, including a large acreage position obtained as a result of a transaction entered into with Zavanna, LLC. Inclusive of the acreage acquisitions, Brigham now has total core acreage of approximately 205,600 net acres.
Williston Basin Drilling and Completion Update
In its Rough Rider project area, Brigham announced the completion of the Larsen 3-10 #1H and the Boots 13-24 #1H Bakken wells, which produced at early 24-hour peak flow back rates of approximately 3,090 (2,631 barrels of oil and 2.75 MMcf) and 1,946 (1,773 barrels of oil and 1.04 MMcf) barrels of oil equivalent, respectively. The Larsen and Boots are located in Williams County and were both completed with 31 fracture stimulation stages. Brigham's working interests in the Larsen and Boots are approximately 72% and 74%, respectively. Brigham has completed 26 long lateral high frac stage Bakken wells in Rough Rider with an average early 24-hour peak rate of approximately 2,421 barrels of oil equivalent.
Brigham's accelerated development of its core operated acreage in its Rough Rider and Ross project areas is proceeding with four operated rigs drilling in Rough Rider and one operated rig drilling in Ross. Another operated rig is expected to arrive in early October and additional rigs are expected to arrive in January and May 2011, respectively, at which time Brigham will be continuously drilling with eight operated rigs.
Brigham currently has two wells fracing and nine wells waiting on completion. In the first quarter 2011, Brigham expects to add additional fracture stimulation capacity. At that time, Brigham estimates that approximately eight wells per month will be fracture stimulated and brought on line to production.
Management Comments
Bud Brigham, the Chairman, President and CEO, commented, "We're extremely excited by the results from our State 36-1 #2H Rough Rider Three Forks well. This well has generated an apparent record early 24-hour production rate for a Three Forks well west of the Nesson Anticline, and begins to potentially de-risk as many as 362 net Rough Rider Three Forks drilling locations. Combining our 571 drilling locations that are already significantly de-risked with as many as 362 net Rough Rider Three Forks drilling locations could result in our de-risked drilling inventory growing to up to 933 potential net locations. We believe success in the Three Forks in our Rough Rider project area represents a significant net asset valuation accretion event for our stockholders and other stakeholders."
Bud Brigham continued, "Our staff continues to manufacture oil wells on our current core acreage and deliver exceptional results. We've now completed 36 consecutive high frac stage long lateral Bakken and Three Forks wells in North Dakota with an average early 24-hour peak production rate of approximately 2,684 barrels of oil equivalent. Furthermore, with our Domaskin completion, we now have three of the four highest initial production rate Bakken wells in the Williston Basin."
Bud Brigham continued, "The results from our four recently completed wells should have a significant positive effect on our fourth quarter 2010 production volumes and our year-end proved reserves. In addition, our production volumes and proved reserves should be further enhanced by our two additional wells that are currently fracing, one of which is located in our Ross project area proximate to our record Bakken wells."
Bud Brigham concluded, "Our land department continues to actively acquire quality acreage in and adjacent to our core areas at attractive costs. We closed on an additional large acreage acquisition in Rough Rider representing approximately 6,000 net acres, all of which is core, and a significant portion of which is held by production. We believe that our track record of 36 consecutive strong producers provides us with a competitive advantage while leasing and we hope to continue to capitalize on that advantage."
About Brigham Exploration
Brigham Exploration Company is an independent exploration, development and production company that utilizes advanced exploration, drilling and completion technologies to systematically explore for, develop and produce domestic onshore oil and natural gas reserves. 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 early initial production rates which decline steeply over the early life of wells, particularly our Williston basin horizontal wells for which we estimate the average monthly production rates may decline by approximately 70% in the first twelve months of production, 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



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