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8-K - FORM 8-K - BRIGHAM EXPLORATION CO | c17380e8vk.htm |
EX-99.2 - EXHIBIT 99.2 - BRIGHAM EXPLORATION CO | c17380exv99w2.htm |
EX-10.33 - EXHIBIT 10.33 - BRIGHAM EXPLORATION CO | c17380exv10w33.htm |
Exhibit 99.1
NEWS RELEASE FOR IMMEDIATE RELEASE |
BRIGHAM EXPLORATION ANNOUNCES DRILLING ACCELERATION, CONTINUED ACREAGE ACQUISITION SUCCESS, CAPITAL
BUDGET INCREASE AND PROVIDES AN OPERATIONAL UPDATE
Austin, TX May 16 , 2011 Brigham Exploration Company (NASDAQ: BEXP) announced that it is
accelerating its pace of drilling operations in the Williston Basin and expects to be at 10
operated rigs by July 2011, which is approximately six months ahead of its previously announced
schedule. Brigham also announced that it has further expanded its Williston Basin acreage
position, primarily as a result of an acquisition in its core de-risked area, and that it currently
holds 378,100 net acres, 224,400 of which are located in its core operating projects. As a result
of its drilling acceleration and acreage acquisitions, Brigham announced that it has increased its
oil and gas capital expenditure budget to $835.5 million. Brigham also provided an update on its
drilling and completion activities in the Williston Basin.
Drilling Acceleration
Brigham announced that it will accelerate its pace of operated drilling activities in the
Williston Basin by adding rig eight later this month, rig nine in June 2011 and rig 10 in late June
or early July 2011. Its 11th and 12th operated rigs are anticipated to be
added in the first quarter 2012 and will be specially built walking rigs capable of maximizing
efficiencies associated with smart pad drilling. As a result of the acceleration, Brigham
anticipates that an additional 8.2 net wells will be spud in 2011.
Williston Basin Acreage Acquisition
Brigham has entered into a binding agreement to acquire additional acreage in the Williston
Basin, largely in its core de-risked project areas. As a result of the transaction, which is
expected to close in approximately 30 days, Brigham will have approximately 378,100 net acres in
the Williston Basin, of which 224,400 are located in its core operating areas. Including the
aforementioned transaction, Brigham approximates that its core de-risked drilling inventory now
totals 783 net remaining drilling locations.
Updated Oil and Gas Capital Expenditure Budget
As a result of its drilling acceleration and acreage acquisitions Brigham announced that it is
increasing its oil and gas capital expenditure budget to $835.5 million in 2011. The bulk of the
increase will fund the capital spent in 2011 to drill 8.2 additional net Williston Basin wells,
additional acreage acquisitions and the construction of additional support infrastructure to add
rail yard facilities west of the Nesson Anticline to create efficiencies for the unloading of oil
and
gas tubulars and proppant. The expansion of the 2011 capital budget, as is reflected below, is
subject to securing additional external capital.
Initial 2011 | May Revised | |||||||
Budget | 2011 Budget | |||||||
Drilling |
$ | 582.1 | $ | 669.2 | ||||
Land |
27.4 | 79.2 | ||||||
Support Infrastructure |
83.2 | 87.1 | ||||||
Oil and
gas capital expenditures |
$ | 692.7 | $ | 835.5 | ||||
Williston Basin Operated Drilling and Completion Update
Brighams accelerated development of its acreage in North Dakota and Montana is proceeding
with four operated rigs drilling in Rough Rider, two operated rigs drilling in Ross and one
operated rig drilling in Montana.
In North Dakota, Brigham is currently drilling a Three Forks well in its Rough Rider project
area in Williams County and has a Three Forks well waiting on completion in its Ross project area
in Mountrail County. Two additional Three Forks wells are anticipated to spud in Rough Rider by
mid-summer, both of which are in McKenzie County.
In Montana, Brigham recently completed drilling operations on the Gobbs 17-8 #1H, which is
located in Roosevelt County, and will drill two consecutive additional wells in Montana, one of
which is located in Roosevelt County and the other in Richland County.
Brigham currently has five wells flowing back, three wells fracing, two of which are being
simultaneously fracture stimulated (zipper fraced), and 14 wells waiting on completion. To date,
Brigham has completed 61 consecutive long lateral high frac stage wells in North Dakota at an
average early 24-hour peak rate of approximately 2,880 barrels of oil equivalent.
Brigham is currently running two fully dedicated frac crews focused on completing Brigham
operated horizontal wells in the basin. Brigham estimates that it will be capable of fracture
stimulating and bringing on line to production a minimum of eight wells per month, with the goal of
achieving 10 fracs per month due to the efficiencies gained by zipper fracs.
Management Comments
Bud Brigham, the Chairman, President and CEO, commented, Were very excited to announce
additional acceleration in the Williston Basin and expect to reach 10 operated rigs by July,
roughly six months ahead of our previously announced plan. We believe that our smart pad
efficiency initiatives, which incorporate zipper fracs, provide us the flexibility to ramp our
operated rig count earlier than anticipated without the need to secure incremental pressure pumping
capacity. Given our deep de-risked drilling inventory on our growing core acreage in the Williston
Basin, this acceleration helps to accrete additional net asset value to our stockholders by pulling
forward wells in the current period that would have otherwise been
drilled much later. As we progress and gain more experience with the anticipated efficiencies
in drilling and completing our wells utilizing our smart pads, we will revisit our production
estimates for the full year 2011 and expect to update production guidance on our second quarter
conference call.
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Bud Brigham continued, Our Land Department continues to exceed expectations with acreage
additions that have increased our overall position in the Williston Basin by 13,800 net acres since
last year. The majority of the acreage has been added to our core areas in Rough Rider and Montana
at favorable per acre rates relative to other recently announced transactions. In addition,
included in the updated land capital budget is capital that we have included to continue with our
ground floor leasing efforts for the remainder of 2011. In total, we now estimate that we have 783
net de-risked locations remaining to be drilled. If we and other operators continue to see
positive results in the Three Forks in Rough Rider, we believe our core de-risked inventory could
be as high as 1,283 net remaining locations.
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 include 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 companys 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 managements 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, Director of Finance & Investor Relations (512) 427-3300 |
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