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June 30, 2011 News - Equity Research on Brigham Exploration Company and Linn Energy, LLC - Global Demand Boost Oil and Gas
Today, www.WorldStreetFundamentals.com released its industry report highlighting Brigham Exploration Company (NASDAQ: BEXP) and Linn Energy, LLC (NASDAQ: LINE). Full fundamental and technical analysis is available at www.WorldStreetFundamentals.com/Reports.php.
As it is expected to see rising oil prices, production growth, improved global economic growth and geopolitical tensions placing pressure on E&P stocks, the growth of this sector is optimistic. The EPS are expected to see growth of about 26% in 2011 and 29% in 2012. As of June, the U.S. Energy Information Administration (EIA) estimated that global oil demand expanded 2.4 million b/d in 2010, to 86.7 million b/d, and sees demand growth of 1.75 MMb/d in 2011, to 88.43 MMb/d. Earlier in 2011, crude oil prices reached highs not seen since 2008, reflecting the disruption of exports from Libya and unrest in the Middle East and North Africa.
World Street Fundamentals has highlighted Brigham Exploration Company as an independent production company that utilizes advanced exploration, drilling and completion technologies to systematically explore for, develop and produce domestic onshore crude oil and natural gas reserves. As of December 31, 2010, it had approximately 600,601 gross and 364,309 net leasehold acres in the Williston Basin. As of December 31, 2010, it proved reserves totaled 66.8 million barrels of oil equivalent. Approximately 78% of its proved reserves are crude oil and it operates approximately 81% of its proved reserves. The entire report on Brigham Exploration Company (NASDAQ: BEXP) is available here: www.WorldStreetFundamentals.com/ViewFullReport.245.php.
World Street has highlighted Linn Energy, LLC as an independent oil and natural gas company. The Company's properties are located in five regions in the United States. As of December 31, 2010, its proved reserves were 2,597 billions of cubic feet equivalents, of which approximately 36% were oil, 48% were natural gas and 16% were natural gas liquids (NGL). At December 31, 2010, the Company operated 7,097 or 68% of its 10,386 gross productive wells. The entire report on Linn Energy, LLC (NASDAQ: LINE) is available here: www.WorldStreetFundamentals.com/ViewFullReport.138.php.
About World Street
World Street Fundamentals is an online portal for professionals, investors and new-comers to the markets to find in depth comprehensive research and research tools to help guide you through the ever changing financial markets. Covering the top performers in the hottest sectors and providing clarity to investors around the world.
Contact:
Adam Redford
Email Contact
www.WorldStreetFundamentals.com
Brigham Exploration Company to Present at EnerCom's London Oil & Gas Conference June 15-15, 2011
Members of Brigham Exploration Company's (NASDAQ: BEXP) management team will be presenting at EnerCom's London Oil & Gas Conference. A copy of our corporate presentation will be available on the Company's website (www.bexp3d.com) beginning Wednesday evening, June 15, 2011. Details regarding the conference are as follows:
Date & Time: Thursday, June 16, 2011 at 9:00 AM British Standard Time
Presenter: Eugene B. Shepherd, Jr. - Executive Vice President and
CFO
Address for Audio http://www.investorcalendar.com/CEPage.asp?ID=164751 or
Webcast & Replay: www.bexp3d.com
Venue: Sofitel London St James
6 Waterloo Place
London, SW1Y 4AN
I have July 16th $30 call, lost money alredy what anybody thinks
will be back over 30 by july?
J.P. Morgan is out with its report today on Brigham Exploration (NASDAQ: BEXP), raising its PT from $20 to $21.50.
In a note to clients, J.P. Morgan writes, "We rate BEXP Neutral. BEXP appears more fairly valued than most other stocks in the group, and the shares trade at a premium to small-cap peers and other oily companies. We are increasing our Dec 2011 price target to $21.50 (from $20.00), which approximates our estimate of current NAV, which we calculate using a discounted cash flow model."
Source: http://www.benzinga.com/analyst-ratings/analyst-color/11/06/1153254/update-j-p-morgan-raises-pt-on-brigham-explorations-to-2#ixzz1On2F7lra
Holding tight to my projections on this one. In recent developments Brigham Exploration has completed 56 long laterals in the Bakken/Three Forks.
These high frac stage wells had an average peak rate of 2884 BOED. Brigham has 205300 largely de-risked net core acres. 724 net development locations in core acres. Brigham wells-- with an EUR of 600 MBOED-- are estimated a NPV of $12 million. This would produce an IRR of 93%. Brigham is accelerating its drilling program from 7 to 12 rigs as of September of 2012. Starting in May of this year, Brigham will add an eighth rig.
Every four months after, Brigham will add an additional well until 12 are reached. This will create an estimated 132 gross well annual run rate. Brigham estimates this will produce an incremental increase per year of 29 wells. This acceleration will produce an 81% increase in oil volumes in 2011. More importantly, this will de-risk the majority of Brigham's core acreage.
BEXP Rises 6.4% on Higher Oil Futures
Brigham Exploration (NASDAQ: BEXP) opened at $27.70. So far today, the stock has hit a low of $27.65 and a high of $29.21. BEXP is now trading at $29.20, up $1.75 (6.36%). Over the last 52 weeks the stock has ranged from a low of $13.45 to a high of $37.87. BEXP shares are getting support from rising oil futures. Technical indicators for the stock are bearish and S&P does not currently have a STARS rating for BEXP. If you are looking for a hedged play on BEXP the stock seems like it could be a candidate for a July out-of-the-money bull-put credit spread below the 26 range.
Brigham Exploration Company Prices $300 Million of Senior Notes
Date : 05/16/2011 @ 5:46PM
Source : MarketWire
Stock : Brigham Exploration (BEXP)
Brigham Exploration Company (NASDAQ: BEXP) announced today that it has priced an offering of $300 million aggregate principal amount of its 6 7/8% senior notes due 2019 ("Senior Notes") at an offer price of 100%. The size of the offering was increased from the previously announced $250 million to $300 million.
Brigham intends to use the net proceeds from the Senior Notes offering to fund portions of its 2011 and 2012 capital budgets and for general corporate purposes. Brigham expects the closing of the Senior Notes offering to occur on May 19, 2011.
The Senior Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state securities laws. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy the Senior Notes.
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 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
Director of Finance and Investor Relations
(512) 427-3300
Brigham Exploration reports it is accelerating its pace of drilling operations in the Williston Basin; expects to be at 10 operated rigs by July 2011; is ~6 months ahead of its previously announced schedule (BEXP) 26.93 : Co announces 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 ~ 6 months ahead of its previously announced schedule. Co 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, co announces that it has increased its oil and gas capital expenditure budget to $835.5 mln.
5/9/2011 Brigham Exploration completes additional infill wells in Williston Basin
Brigham Exploration Company has announced the completion of additional infill wells in the Williston Basin, including the Brad Olson 9-16-III H and the Erickson 8-17-III H, bringing the total number of infill wells completed by the company to four at an average early 24-hour peak rate of approximately 3,378boe.
5/3/2011- Brigham Exploration Reports First Quarter 2011 Results
Date : 05/03/2011 @ 4:44PM
Source : MarketWire
Stock : Brigham Exploration (BEXP)
Quote : 31.69 -0.94 (-2.88%)
Brigham Exploration Company (NASDAQ: BEXP) today announced financial results for the quarter ended March 31, 2011.
FIRST QUARTER 2011 RESULTS
Our average daily production volumes for the first quarter 2011 were 11,314 barrels of crude oil equivalent (Boe) per day, up 109% from the first quarter 2010 and down 1% from the fourth quarter 2010.
Benefiting from both our operated and non-operated drilling activity in the Williston Basin, our high value crude oil production volumes for the first quarter 2011 averaged 9,211 barrels of crude oil per day, which represents a 159% increase from that in the first quarter 2010 and up 1% from that in the fourth quarter 2010. Our high value crude oil production volumes represented 81% of our total production volumes in the first quarter 2011, as compared to 66% in the first quarter 2010 and 80% in the fourth quarter 2010.
Our production volumes in the Williston Basin for the first quarter 2011 were 9,371 Boe per day, which represents a 190% increase from that in the first quarter 2010 and a slight increase from that in the fourth quarter 2010. During March 2011, our Williston Basin volumes exceeded 10,000 Boe per day for the first time in our history.
Our first quarter production volumes included approximately 732 barrels of crude oil produced during the first quarter 2011 and added to inventory. Adjusting our production volumes for amounts included in inventory resulted in first quarter 2011 daily sales volumes of 11,306 Boe per day.
Revenues from the sale of crude oil and natural gas, including cash hedge settlements for the first quarter 2011, were up 158% to $76.0 million as compared to that in the first quarter 2010. Higher crude oil sales volumes and crude oil prices increased revenues by $37.3 million and $9.4 million, respectively. Higher natural gas sales volumes also increased revenue by $0.8 million. Lower cash hedge settlements and natural gas prices decreased revenues by $0.5 million and $0.5 million, respectively.
During the first quarter 2011, our average realized price for crude oil was $82.76 per barrel, which included a $1.27 loss from the cash settlement of our crude oil derivative contracts. This compares to an average realized price in the first quarter 2010 of $72.39 per barrel, which included a $0.30 per barrel cash loss due to the settlement of our crude oil derivative contracts. Our average realized price for natural gas inclusive of natural gas liquids in the first quarter 2011 was $6.57 per Mcf, which included a $0.96 per Mcf cash gain due to the settlement of our natural gas derivative contracts. This compares to an average realized price in the first quarter 2010 of $6.68 per Mcf, which included a $0.67 per Mcf cash gain due to the settlement of our natural gas derivative contracts.
Our first quarter 2011 production costs, which include costs for operating and maintaining (O&M expense) our producing wells, expensed workovers, ad valorem taxes and production taxes, were up $0.95 per Boe when compared to that in the first quarter 2010. The increase was attributable to a $2.37 per Boe increase in production taxes, which was driven by higher commodity prices and higher levels of production in North Dakota, which are subject to an 11.5% tax rate. This increase was partially offset by a $1.48 per Boe decrease in expensed workovers due to fewer workovers.
Our general and administrative (G&A) expenses for the first quarter 2011 decreased by $3.07 per Boe as compared to the prior year's quarter due to our higher production volumes. The per unit decrease associated with our higher production volumes was partially offset by an increase in employee compensation costs due to higher levels of employee salaries in 2011 to ensure competitive compensation levels with other oil and gas companies, and a higher number of employees due to our growth in activity in the Williston Basin.
Our depletion expense for the first quarter 2011 was $18.9 million ($18.61 per Boe) compared to $9.2 million ($19.07 per Boe) in the first quarter 2010. Our higher sales volumes increased depletion expense by $10.2 million while our lower depletion rate decreased depletion expense by $0.5 million.
Our net interest expense for the first quarter 2011 was $0.5 million higher than that in the first quarter 2010. Interest expense increased due to the September 2010 issuance of our $300 million Senior Notes due 2018 and was partially offset by an increase in our capitalized interest associated with our higher level of drilling activity in the Williston Basin.
We recorded deferred income tax expense of $0.2 million in the first quarter 2011, which consists of $0.1 million in deferred federal income tax expense and $0.1 million in deferred North Dakota state income tax expense.
Our reported net income for the first quarter 2011 was $1.6 million ($0.01 per diluted share) versus net income of $11.3 million ($0.11 per diluted share) for the same period last year. Our after-tax earnings in the first quarter 2011 excluding unrealized mark-to-market hedging losses were $33.8 million ($0.29 per diluted share) as compared to our after-tax earnings in the first quarter 2010 excluding our unrealized mark-to-market hedging gains were $8.3 million ($0.08 per diluted share). After-tax earnings excluding the above items is a non-GAAP measure and a reconciliation of GAAP net income to after-tax earnings excluding the above items is included in our accompanying financial tables found later in this release.
Through March 31, 2011, we spent $122.8 million in oil and gas capital expenditures. Capital expenditures for the first three months of 2011 and 2010 were:
Three months ended
March 31,
-----------------------
2011 2010
----------- -----------
(in thousands)
Drilling $ 110,778 $ 43,606
Support infrastructure 5,264 --
Land 6,770 8,477
----------- -----------
Oil and gas capital expenditures $ 122,812 $ 52,083
Capitalized costs 6,641 4,569
Capitalized FAS 143 ARO 178 52
----------- -----------
Total capital expenditures $ 129,631 $ 56,704
=========== ===========
SECOND QUARTER 2011 FORECASTS
The following forecasts and estimates of our second quarter 2011 production volumes are forward-looking statements subject to the risks and uncertainties identified in the "Forward-Looking Statements Disclosure" at the end of this release. We are forecasting that our second quarter 2011 production volumes to average between 12,000 Boe per day and 14,000 Boe per day and that our crude oil volumes will comprise approximately 82% of our second quarter production volumes.
For the second quarter 2011, lease operating expenses are projected to be $7.40 per Boe based on the mid-point of our production guidance, production taxes are projected to be approximately 10.0 to 10.5% of pre-hedge crude oil and natural gas revenues, and general and administrative expenses are projected to be $3.5 million ($2.99 per Boe).
MANAGEMENT COMMENTS
Gene Shepherd, Brigham's Chief Financial Officer, commented, "As we have demonstrated over the last two years, the consistency of our drilling results continues to give us excellent visibility as to the growth in production volumes and reserves that we expect to achieve in 2011. In addition to continuing to grow our inventory of development drilling locations in western North Dakota and eastern Montana, we expect 2011 to be a year where the company benefits from significant efficiencies in our drilling and completion techniques that should positively impact our costs in the second half of 2011 and in 2012. We expect these efficiencies to help offset the higher drilling and completion costs that we have experienced in 2011. Despite the increased costs, the 10% overage factor that was part of our February budget provides adequate protection against cost overruns such that we believe that we are still operating within our original 2011 budget."
Mr. Shepherd continued, "Given our record first quarter financial performance, strong balance sheet and accelerating level of drilling activity as we enter the second quarter, we look forward to 2011 being one of the most exciting years in our company's history."
CONFERENCE CALL INFORMATION
Our management will host a conference call to discuss operational and financial results for the first quarter 2011 with investors, analysts and other interested parties on Wednesday, May 4, at 11:00 a.m. Eastern Time. To participate in the call, participants within the U.S./Canada please dial 877-398-9480 and participants outside the U.S./Canada please dial 708-290-1157. The conference ID number for the call is 62089416. A telephone recording of the conference call will be available approximately two hours after the call is completed through 11:59 p.m. Eastern Time on Wednesday, May 11, 2011. To access the recording, U.S./Canada callers dial 800-642-1687 and international callers dial 706-645-9291. The conference ID number for the call is 62089416. In addition, a live and archived web cast of the conference call will be available over the Internet at www.bexp3d.com.
We will be updating our corporate presentation prior to our conference call and will reference information contained therein. We encourage you to access the presentation in advance of the conference call. To access the presentation, go to www.bexp3d.com and click on Corporate Presentation along the left side of our home page. In addition, a copy of this press release and other financial and statistical information about the periods covered by this press release and by the conference call that will take place on Wednesday, May 4, 2011, will be available on our website. To access the press release, go to www.bexp3d.com, click on Investor Relations and then click on Press Releases. The file with a copy of the press release is named Brigham Exploration Reports First Quarter 2011 Results and is dated Tuesday, May 3, 2011. To access the other financial and statistical information that will be covered by the conference call that will take place on Wednesday, May 4, 2011, go to www.bexp3d.com, click on Investor Relations and then click on Events & Presentations. The file with the other financial and statistical information is named Financial and Statistical Information for the First Quarter 2011 Conference Call and is dated Wednesday, May 4, 2011.
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 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 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 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.
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (unaudited)
Three Months Ended
March 31,
----------------------
2011 2010
---------- ----------
Revenues:
Crude oil sales $ 69,596 $ 22,870
Natural gas sales 6,367 6,060
Hedging settlements 50 582
---------- ----------
76,013 29,512
Unrealized hedging gains(losses) (36,008) 3,052
---------- ----------
40,005 32,564
Support infrastructure 594 --
Other revenue 2 9
---------- ----------
Total Revenue 40,601 32,573
---------- ----------
Costs and expenses:
Lease operating 7,720 4,349
Production taxes 7,698 2,508
Support infrastructure 190 --
General and administrative 3,382 3,086
Depletion of oil and natural gas properties 18,940 9,211
Depreciation and amortization 971 233
Accretion of discount on asset retirement
obligations 110 105
---------- ----------
39,011 19,492
---------- ----------
Operating income (loss) 1,590 13,081
---------- ----------
Other income (expense):
Interest expense, net (3,378) (2,904)
Interest income 367 453
Other income (expense) 3,154 685
---------- ----------
143 (1,766)
---------- ----------
Income (loss) before income taxes $ 1,733 $ 11,315
Income tax (expense) benefit:
Current -- --
Deferred (179) --
---------- ----------
(179) --
---------- ----------
Net income (loss) $ 1,554 $ 11,315
========== ==========
Net income (loss) per share available to common
stockholders:
Basic $ 0.01 $ 0.11
========== ==========
Diluted $ 0.01 $ 0.11
========== ==========
Weighted average shares outstanding:
Basic 116,359 99,444
========== ==========
Diluted 118,522 101,357
========== ==========
BRIGHAM EXPLORATION COMPANY
PRODUCTION VOLUMES, SALES VOLUMES, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)
Three Months
Ended March 31,
----------------
2011 2010
------- -------
Average net daily production volumes:
Crude oil (Bbls) 9,211 3,552
Natural gas (MMcf) 12.6 11.2
Equivalent crude oil (Boe) (6:1) 11,314 5,420
Total net production volumes:
Crude oil (MBbls) 829 320
Natural gas (MMcf) 1,136 1,009
Equivalent oil (MBoe) (6:1) 1,018 488
% Crude oil 81% 66%
Increase in inventory:
Crude oil (Bbls) 732 5,012
Natural gas (MMcf) -- --
Equivalent crude oil (Boe) (6:1) 732 5,012
Average net daily sales volumes (Average net production
volumes less average net daily increase in inventory):
Crude oil (Bbls) 9,203 3,496
Natural gas (MMcf) 12.6 11.2
Equivalent crude oil (Boe) (6:1) 11,306 5,364
Total net sales volumes (Total net production volumes
less increase in inventory):
Crude oil (MBbls) 828 315
Natural gas (MMcf) 1,136 1,009
Equivalent crude oil (MBoe) (6:1) 1,018 483
% Crude oil 81% 65%
Sales price:
Crude oil ($/Bbl) $ 84.03 $ 72.69
Natural gas ($/Mcf) 5.61 6.01
Equivalent crude oil ($/Boe) (6:1) 74.65 59.93
Sales price including derivative settlement gains
(losses):
Crude oil ($/Bbl) $ 82.76 $ 72.39
Natural gas ($/Mcf) 6.57 6.68
Equivalent crude oil ($/Boe) (6:1) 74.70 61.13
Sales price including derivative settlement gains
(losses) and unrealized gains (losses):
Crude oil ($/Bbl) $ 40.48 $ 73.90
Natural gas ($/Mcf) 5.70 9.23
Equivalent crude oil ($/Boe) (6:1) 39.31 67.45
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December
2011 31, 2010
----------- -----------
Assets:
Current assets $ 323,306 $ 360,857
Oil and natural gas properties, net (full cost
method) 774,557 669,356
Other property and equipment, net 47,984 42,837
Other non-current assets 15,451 12,351
----------- -----------
Total assets $ 1,161,298 $ 1,085,401
=========== ===========
Liabilities and stockholders' equity:
Current liabilities $ 236,747 $ 176,545
Senior notes 300,000 300,000
Other non-current liabilities 28,634 15,586
----------- -----------
Total liabilities $ 565,381 $ 492,131
Stockholders' equity 595,917 593,270
----------- -----------
Total liabilities and stockholders' equity $ 1,161,298 $ 1,085,401
=========== ===========
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Three Months Ended
March 31,
----------------------
2011 2010
---------- ----------
Cash flows from operating activities:
Net income (loss) $ 1,554 $ 11,315
Depletion, depreciation and amortization 19,911 9,444
Accretion of discount on ARO 110 105
Amortization of deferred loan fees and debt
issuance costs 526 506
Non-cash stock compensation 747 427
Market value adjustments for derivatives
instruments 36,008 (3,052)
Deferred income tax expense 179 --
Provision for doubtful accounts (2) --
Other noncash items -- (1)
Changes in operating assets and liabilities 7,178 7,229
---------- ----------
Cash flows provided by operating activities $ 66,211 $ 25,973
Cash flows provided (used) by investing
activities (65,525) (42,910)
Cash flows provided (used) by financing
activities (3,843) 632
---------- ----------
Net increase (decrease) in cash and cash
equivalents $ (3,157) $ (16,305)
========== ==========
SUMMARY PER BOE DATA
(unaudited)
Three Months Ended
March 31,
----------------------
2011 2010
---------- ----------
Revenues:
Crude oil and natural gas sales $ 74.65 $ 59.93
Hedging settlements 0.05 1.20
Unrealized hedging gains (losses) (35.39) 6.32
Support infrastructure 0.58 --
Other revenue -- 0.02
---------- ----------
$ 39.89 $ 67.47
========== ==========
Costs and expenses:
Lease operating 7.58 9.00
Production taxes 7.56 5.19
Support infrastructure 0.19 --
General and administrative 3.32 6.39
Depletion of oil and natural gas properties 18.61 19.07
Depreciation and amortization 0.95 0.48
Accretion of discount on ARO 0.11 0.22
---------- ----------
$ 38.32 $ 40.35
---------- ----------
Operating income (loss) $ 1.57 $ 27.12
========== ==========
Interest expense, net of interest income (a) (2.96) (5.07)
Other income (expense) 3.10 1.42
---------- ----------
Adjusted income (loss) $ 1.71 $ 23.47
========== ==========
(a) Calculated as interest expense minus interest income divided by
production for period.
BRIGHAM EXPLORATION COMPANY
RECONCILIATION OF GAAP NET INCOME TO AFTER-TAX EARNINGS
EXCLUDING THE EFFECTS OF CERTAIN ITEMS
(in thousands)
Three months ended
March 31,
----------------------
2011 2010
---------- ----------
Net income (loss) as reported $ 1,554 $ 11,315
Unrealized derivative (gains) losses 36,008 (3,052)
Tax impact (3,720) --
---------- ----------
Earnings excluding the effects of certain items $ 33,842 $ 8,263
========== ==========
Earnings without the effects of certain items represent net income
excluding unrealized gains and losses on derivative contracts. Management
believes that exclusion of these items enhances comparability of operating
results between periods.
BRIGHAM EXPLORATION COMPANY
SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF MAY 3, 2011
(unaudited)
2011 2012
---------------------- -------------------------------
Q2 Q3 Q4 Q1 Q2 Q3 Q4
------ ------- ------- ------- ------- ------- -------
Crude Oil Costless
Collars:
Daily
volumes Bbls/d 6,110 7,587 9,207 8,239 8,580 10,168 10,000
Floor $ /Bbl $65.68 $ 67.69 $ 70.84 $ 69.03 $ 69.46 $ 71.71 $ 73.99
Cap $ /Bbl $98.83 $103.57 $109.45 $109.07 $110.07 $114.56 $116.11
Crude Oil Floors:
Daily
volumes Bbls/d -- -- -- 1,500 1,500 1,500 1,500
Floor $ /Bbl $ -- $ -- $ -- $ 65.00 $ 65.00 $ 80.00 $ 80.00
Natural Gas Costless
Collars:
Daily
volumes MMBtu/d 3,626 3,587 3,587 -- -- -- --
Floor $/MMBtu $ 5.48 $ 5.48 $ 5.48 $ -- $ -- $ -- $ --
Cap $/MMBtu $ 7.16 $ 7.16 $ 7.16 $ -- $ -- $ -- $ --
2013
---------------
Q1 Q2
------- -------
Crude Oil
Costless
Collars:
Daily
volumes Bbls/d 9,000 1,341
Floor $ /Bbl $ 80.38 $ 85.00
Cap $ /Bbl $125.25 $134.00
Crude Oil
Floors:
Daily
volumes Bbls/d -- --
Floor $ /Bbl $ -- $ --
Natural Gas
Costless
Collars:
Daily
volumes MMBtu/d -- --
Floor $/MMBtu $ -- $ --
Cap $/MMBtu $ -- $ --
Hedged volumes and prices reflected in this table represent average
contract amounts for the quarterly periods presented; crude oil hedge
contract prices and natural gas hedge prices are based on NYMEX pricing.
Contact:
Rob Roosa
Director of Finance & Investor Relations
(512) 427-3300
Brigham Exploration Announces First Quarter 2011 Earnings Conference Call
Brigham Exploration Company (NASDAQ: BEXP) will hold its conference call to discuss operational and financial results for the first quarter 2011 on Wednesday, May 4, 2011 at 11:00 AM ET (10:00 AM CT). Brigham also plans to issue an earnings press release after the close of market trading on Tuesday, May 3, 2011.
Interested parties may dial in using the instructions below, or visit Brigham's website for the live and archived webcast at http://www.bexp3d.com. Details for the conference call are as follows:
Date & Time:
Wednesday, May 4, 2011
11:00 AM ET (10:00 AM CT)
Host:
Bud Brigham - Chairman, CEO and President
Dial-In Number:
877.398.9480 within U.S./Canada
708.290.1157 outside U.S./Canada
Conference ID:
62089416
Telephone Replay Number:
800.642.1687 within U.S./Canada
706.645.9291 outside U.S./Canada
Telephone Replay Available Through:
May 11, 2011
Webcast Address:
http://www.bexp3d.com
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.
Contact:
Rob Roosa
Director of Finance & Investor Relations
(512) 427-3300
Stifel Nicolaus is downgrading shares of Brigham Exploration Company (NASDAQ: BEXP) from Buy to Hold on valuation concerns.
In a note to clients, Stifel Nicolaus writes, "After significantly outperforming our peer group over the past year, Brigham's shares trade at an 11% premium based on EV/2012E EBITDA and price/NAV. We believe the stock's risk/reward is balanced and are lowering our rating to Hold.
Increased density drilling in North Dakota and development of frontier acreage in Montana could add $8 to our NAV estimate of $37/share. On the downside, a $10/Bl decline in oil prices would reduce our NAV estimate $7 share to $30/share."
Source: http://www.benzinga.com/analyst-ratings/analyst-color/11/04/1031963/stifel-nicolaus-downgrading-brigham-exploration-company-#ixzz1KdmSrdbo
4/13/11 - Brigham Exploration Announces Record North Dakota and Montana Bakken Completions and Provides an Operational Update
Date: 04/13/2011 @ 8:30AM
Source: MarketWire
Stock: Brigham Exploration (BEXP)
Quote: 32.41 0.0 (0.00%) @ 7:22AM
Brigham Exploration Company (NASDAQ: BEXP) announced that its Sorenson 29-32 #2H Bakken well produced a North Dakota Bakken record 5,330 barrels of oil equivalent during its early 24-hour peak flow back period. Brigham also announced that its Johnson 30-19 #1H Bakken well, which is located in Richland County, Montana, produced a Montana Bakken record early 24-hour peak flow back rate of approximately 2,962 barrels of oil equivalent. Brigham announced the completion of four additional North Dakota Bakken wells and, as a result, has completed 56 consecutive long lateral high frac stage wells in North Dakota at an average early 24-hour peak flow back rate of approximately 2,884 barrels of oil equivalent. Finally, Brigham provided an update on its drilling and completion activities in the Williston Basin.
Record North Dakota Bakken Well
Brigham announced that the Sorenson 29-32 #2H produced a North Dakota Bakken record 5,330 barrels of oil equivalent (4,661 barrels of oil and 4.01 MMcf of natural gas) during its early 24-hour peak flow back period. The Sorenson 29-32 #2H, which is located in Brigham's Ross project area in Mountrail County, North Dakota, supplants Brigham's Sorenson 29-32 #1H as the record initial rate Bakken well. To date, based on publically available information, Brigham has the four highest initial rate Bakken wells and seven of the top 10 initial rate Bakken wells in the Williston Basin. The Sorenson 29-32 #2H represents Brigham's first infill well completion in its Ross project area and was drilled, on average, approximately 1,720' from the Sorenson 29-32 #1H well, which was completed in April 2010. The Sorenson 29-32 #2H was completed with 38 frac stages.
The Sorenson 29-32 #2H and the Cvancara 20-17 #1H, which produced approximately 4,402 barrels of oil equivalent during its early 24-hour peak flow back period, were the first wells drilled and completed using Brigham's smart pad design. The smart pad design allows wells to be drilled from the same pad and simultaneously fracture stimulated. It is estimated that approximately 10% to 20% in cost savings can be achieved with implementation of smart pad drilling and completion techniques.
Record Montana Bakken Well
Brigham announced that the Johnson 30-19 #1H, which is located in Richland County, produced approximately 2,962 barrels of oil equivalent (2,684 barrels of oil and 1.67 MMcf of natural gas) during its early 24-hour peak flow back period. The well was completed with 36 fracture stimulation stages, and based on publically available information, is the record initial rate Bakken well in Montana.
North Dakota Operated Well Result Update
Brigham has now completed 56 consecutive long lateral high frac stage wells in North Dakota with an average early 24-hour peak flow back rate of approximately 2,884 barrels of oil equivalent. The following table updates Brigham's North Dakota long lateral, high frac stage well results since its last operational update:
Early 24-Hour Peak Flow Back
Rate
------------------------------
Barrels of
Oil
County, Working Crude Natural Equivalent
Well State Objective Stages Interest Oil (1) Gas (2) (3)
--------- --------- ------ -------- -------- ---------- ----------
Sorenson
29-32 Mountrail
#2H , ND Bakken 38 95% 4,661 4.01 5,330
Cvancara
20-17 Mountrail
#1H , ND Bakken 36 79% 3,909 2.96 4,402
Brown 30- Mountrail
19 #1H , ND Bakken 37 78% 2,789 3.12 3,309
Hospital
31-36 Mountrail
#1H , ND Bakken 33 89% 1,276 1.03 1,449
Afseth Mountrail
34-3 #1H , ND Bakken 38 44% 1,155 0.67 1,267
5 Well
Average 3,151
(1) Barrels of crude oil.
(2) Millions of cubic feet of natural gas (MMcf).
(3) Converted to barrels of oil equivalent using the ratio of six Mcf of
natural gas per barrel of crude oil.
Williston Basin Operated Drilling and Completion Update
Brigham's 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. Brigham's eighth dedicated operated rig is expected to arrive in May.
In North Dakota, Brigham will spud its second Three Forks well in its Rough Rider project area in Williams County before the end of the month. An additional Three Forks well is anticipated to be spud in early summer in McKenzie County.
In Montana, Brigham recently completed drilling operations on the Beck 15-10 #1H, which is located in Roosevelt County, and will drill three consecutive additional wells in Montana, two of which are in Roosevelt County and one in Richland County. Later this month, Brigham will begin the fracture stimulation of the Voss 21-11H, which was purchased from another operator who drilled and completed the well in August 2007 with a single fracture stimulation. Brigham successfully removed the old liner from the wellbore and replaced it with a new liner with swell packers. Brigham expects to use 28 fracture stimulation stages to complete the Voss 21-11H.
Brigham currently has two wells flowing back, two wells fracing and 15 wells waiting on completion.
Later this month, Brigham expects to add additional fracture stimulation capacity thereby providing access to two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. At that time, Brigham estimates that it will be capable of fracture stimulating and bringing on line to production a minimum of eight wells per month due to the efficiencies gained by simultaneous stimulations.
Management Comments
Bud Brigham, the Chairman, President and CEO, commented, "Our team continues to deliver outstanding operational results with record setting Bakken wells in North Dakota and Montana. The impressive results of the Sorenson 29-32 #2H, which was drilled approximately one year after the Sorenson 29-32 #1H, clearly demonstrates the substantial net asset value attributable to our infill drilling locations."
Bud Brigham continued, "The extremely positive results of our Johnson 30-19 #1H, which is located in Richland County, further de-risks part of our Montana acreage for the Bakken. Our de-risking should continue based on the results of the fracture stimulation of the Voss 21-11H, which is expected to occur later this month. Plans are to continue to work towards de-risking larger parts of our Montana acreage by drilling a total of four additional wells over the next several months."
Bud Brigham concluded, "Importantly, our acceleration in the Williston Basin continues to be on schedule as we expect to begin operating two fully dedicated frac crews this month and expect our next dedicated operated rig to arrive in May. Our core acreage position combined with our operational expertise and accelerated development is anticipated to set us up for a very positive 2011 in terms of net asset value growth. Looking ahead, given the remarkably consistent results associated with our 56 consecutive long lateral high frac stage completions in North Dakota, it's likely that we will no longer release individual well early 24-hour peak rates, except in certain circumstances, such as where results provide specific information with respect to de-risking our non-core acreage and the resulting net asset value accretion."
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
Director of Finance & Investor Relations
(512) 427-3300
4/11/11 - Brigham Exploration to Present at the IPAA OGIS New York Conference
Members of Brigham Exploration Company's (NASDAQ: BEXP) management team will be presenting at the IPAA OGIS New York Conference on Wednesday, April 13, 2011 at the Sheraton New York Hotel & Towers. A copy of our corporate presentation will be available on the Company's website (www.bexp3d.com) beginning Wednesday morning, April 13, 2011. Details regarding the conference are as follows:
Date & Time:
Wednesday, April 13, 2011 at 2:00 PM Eastern Time
Presenter:
Eugene B. Shepherd, Jr. - Executive Vice President and CFO
Address for Audio Webcast & Replay:
http://www.corporate-ir.net/ireye/conflobby.zhtml?ticker=BEXP&item_id=3848799
or
http://www.bexp3d.com/
Venue:
Sheraton New York Hotel & Towers
811 7th Avenue 53rd Street
New York, NY 10019
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.
Contact:
Rob Roosa
Director of Finance & Investor Relations
(512) 427-3300
I like your points of view. I however remain very bullish on service provides and E & P companies. $40 should be a no brainer here IMO.
I do indeed TurnKeyOil. Also Price Target Raised Today!
Friedman, Billings raises BEXP target from $28 to $40.
Your Energy Partners looks like it also may be a good way to leverage the sector, but a market top may be near at Dow 12400. If the dollar continues to rise, energy and providers might get pressured. We will see.
GLTY,
btrain
Do you think this is a good prediction?
Brigham Exploration to Present at the Howard Weil 39th Annual Energy Conference
Thursday 24, 2011
Marketwire
Members of Brigham Exploration Company's (NASDAQ: BEXP) management team will be presenting at the Howard Weil 39th Annual Energy Conference in New Orleans on Tuesday, March 29, 2011 at The Roosevelt New Orleans. A copy of our corporate presentation will be available on the Company's website (www.bexp3d.com) beginning Monday, March 28, 2011 at the close of business. Details regarding the conference are as follows:
Date & Time: Tuesday, March 29, 2011 at 10:45 AM Central Time
Presenters: Ben M. "Bud" Brigham - Chairman, President and CEO
Eugene B. Shepherd, Jr. - Executive Vice President and CFO Lance Langford - Executive Vice President of Operations
Venue: The Roosevelt New Orleans 123 Baronne Street New Orleans, LA 70112
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.
Contact: Rob Roosa Director of Finance & Investor Relations (512) 427-3300
SOURCE: Brigham Exploratio
Huge trades running up into the bell and after the bell. Good news must be on its way.
Clearly resistance was broken, and I am now expecting BEXP to go lower, if the US Dollar continues to climb. As the dollar increases all commodities decline. They and the equities move inverse to the dollar's upward moves.
BEXP is a huge explorer and producer of US oil http://bakkenshale.org
http://twitter.com/oilrigjobs
Perhaps,
however look at the afterhours action.
http://www.nasdaq.com/aspxcontent/ExtendedTradingTrades.aspx?selected=BEXP&mkttype=after
Someone acquired 250,000 shares today AH.
Someone thought that this would be a good entrypoint.
Should be just fine...BEXP in the 33's is insane!
The chart looks like 33.35 range soon, but I don't know about the $20s. And I am on the call side of this one in June. If the trend continues I may have to change my position...
BEXP mania must show soon or we see $20????
LOL
Now that would make some happy on the PUT side!
mb
The chart looks like we may be breaking down. Here are the pivot, resistance and support points for today:
BEXP 7 Mar 2011 Pivot Points, Fib Pivots and Camarilla
R3 37.04 Fib R3 36.60 Brk Out Long 36.28
R2 36.60 Fib R2 36.29 Short 36.06
R1 36.22 Fib R1 36.09 HL2 35.98
Pivot 35.78 Pivot 35.78 HL1 35.91
S1 35.40 Fib S1 35.47 LL1 35.75
S2 34.96 Fib S2 35.27 LL2 35.68
S3 34.58 Fib S3 34.97 Long 35.60
Brk Out Short 35.38
BEXP has a bright oily future ahead...
the higher oil values are only cream on a large dessert!
Some traders are taking her on the roller coaster ride now sub $36???
BEXP....BOOM Wanted!!!
Agreed Mt. Blanc. Our chart may be on the verge of breaking out to the upside, but it looks somewhat tenuous without additional volume. If the dollar moves a little lower, and the market moves up a little, we may see it start today or Tuesday...we'll see, but $40 is my target number so far.
Brigham Expl. is going to be in the $40's before too long...
its a huge play on the co prospects and the rising price of that black stuff. We are cooked in the oil patch...oil will continue to rise for awhile yet to $120++! BEXP is one path to $$$$.
Let the boomage begin as the chart needs some solid action!!!
mb
Brigham Exploration to Present at the Raymond James 32nd Annual Institutional Investors Conference March 8th
Members of Brigham Exploration Company's (NASDAQ: BEXP) management team will be presenting at the Raymond James 32nd Annual Institutional Investors Conference in Orlando on Tuesday, March 8, 2011 at the JW Marriott Orlando Grande Lakes. A copy of our corporate presentation will be available on the Company's website (www.bexp3d.com) beginning Monday, March 7, 2011 at the close of business. Details regarding the conference are as follows:
Date & Time: Tuesday, March 8, 2011 at 7:30 AM Eastern Time
Presenter: Ben M. "Bud" Brigham - Chairman, President and CEO
Address for Audio Webcast & Replay: http://www.wsw.com/webcast/rj62/bexp/ or www.bexp3d.com
Venue:
JW Marriott Orlando Grande Lakes
4040 Central Florida Parkway
Orlando, FL 32837
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.
Contact:
Rob Roosa
Director of Finance & Investor Relations
(512) 427-3300
Huge stake in Bakken. This looks Awesome here.
Thurs., Feb. 24, 2011 - Brigham Exploration Announces Acceleration to 12 Operated Williston Basin Rigs, Confirmation of Incremental Down-spacing Opportunity
Date : 02/24/2011 @ 5:14PM
Source : MarketWire
Brigham Exploration Company (NASDAQ: BEXP) announced that it will begin its acceleration to 12 operated Williston Basin rigs in 2011. Brigham also announced micro-seismic monitoring and production results that appear to support four wells per producing horizon per 1,280 acre spacing unit, or eight total Bakken and Three Forks locations per spacing unit. Brigham announced that the Swindle 16-9 #1H, its second Montana Bakken completion, produced at an early 24-hour peak flow back rate of approximately 1,065 barrels of equivalent. Brigham also announced the completion of two additional North Dakota Bakken wells at an average early 24-hour peak flow back rate of 3,513 barrels of oil equivalent. Finally, Brigham provided an update on its drilling and completion activities in the Williston Basin.
Williston Basin Activity Accelerating to 12 Operated Rigs
Brigham announced that it plans to accelerate its Williston Basin operated rig count to 12 rigs by continuing to add an incremental operated rig every 4 months after adding its planned eighth rig in May 2011. Accelerating from eight to 12 operated rigs is anticipated to increase Brigham's drilling pace by approximately 44 gross wells per year, or approximately 29 net wells, once at the 12 operated rig level. Brigham anticipates reaching 12 operated rigs by September 2012.
Based on an accelerated level of activity in 2011, Brigham anticipates drilling approximately 66 net Williston Basin Bakken and Three Forks wells during 2011 as compared to approximately 39 net wells in 2010. Drilling capital is anticipated to be approximately $582.1 million in 2011, which incorporates a total per well cost of approximately $7.9 million plus a 10% budgeted overage.
Micro-seismic Monitoring and Early Production Supports Eight Total Wells Per 1,280 Acre Spacing Unit
Brigham announced that the interpretation of the micro-seismic data from the 18 square mile data set accumulated during the Brad Olson 9-16 #2H fracture stimulation indicates that frac wings appear to extend laterally approximately 500' on either side of the wellbore, or 1,000' in total, per well. Based on a one mile wide spacing unit, results from the micro-seismic monitoring appear to support development of at least four wells per producing horizon per 1,280 acre spacing unit, or approximately eight total Bakken and Three Forks wells per spacing unit.
Based on the increased density drilling opportunity, Brigham estimates that its de-risked drilling inventory in its Ross / Parshall / Austin and Rough Rider project areas has increased from 590 total net locations to approximately 782 total net locations.
Smart Pad Development
Brigham announced that it has initiated utilization of smart pad development in its Rough Rider and Ross project areas. Smart pad development can be implemented either by drilling multiple wells from the same location in a single spacing unit or by drilling stacked 1,280 acre spacing units, one to the north and one to the south, and drilling multiple wells in both spacing units from the same location. Smart pad development, once fully implemented, is anticipated to save approximately 10% to 20% per well on drilling and completion capital expenditures. Furthermore, smart pads are expected to reduce surface footprints and allow for consolidation of equipment and services into centralized facilities.
Drilling efficiencies are achieved by minimizing rig mobilization and demobilization times by placing wellbores in close proximity, which allows rigs to be moved without complete disassembly. Alternatively, "walking rigs," or rigs that can move short distances from wellhead to wellhead, also minimize rig related move time. To gain these additional advantages, Brigham has ordered two PACE "B" Series walking rigs from Nabors Drilling USA, LP (an operating unit of Nabors Industries, Ltd, (NYSE: NBR)) and expects to begin drilling operations with these rigs late in 2011 or early in 2012. Drilling efficiencies are also achieved by simultaneously drilling the same segment of multiple wellbores, which minimizes the amount of time spent laying down drill pipe and changing mud systems.
Completion efficiencies are achieved via the simultaneous fracture stimulation of wells in close proximity. While one well is fracing, the other well is undergoing perf and plug wire line procedures. Completion crews then alternate the fracing and wire line work between wells. Brigham has just completed its first simultaneous fracture stimulation in Ross with the Sorenson 29-32 #2H and the Cvancara 20-17 #1H. Based on initial results, it appears that approximately nine to 11 stages can be completed per day with simultaneous stimulation versus 6 stages per day while independently fracing wells.
In total, Brigham's large and concentrated acreage positions in Rough Rider and Ross provide approximately 188 operated 1,280 acre spacing units for potential smart pad development, where the company could drill as many as 1,504 gross wells. Brigham estimates that 112 of these spacing units are stacked units (two 1,280 acre spacing units that adjoin each other end to end), which provides additional drilling and completion efficiencies. Current 2011 drilling plans include 26 stacked units to be drilled in Rough Rider and Ross.
Montana Bakken Completion Results / Update
Brigham announced that the Swindle 16-9 #1H, which is located in Roosevelt County, produced approximately 1,065 barrels of oil equivalent during its early 24-hour peak flow back period. The well was completed with 19 fracture stimulation stages as the liner with swell packers did not reach total depth. Approximately 3,200' of the outermost wellbore was completed with a single open hole fracture stimulation.
Brigham is currently in the process of fracture stimulating the Johnson 30-19 #1H, which is located in Richland County, with 30 fracture stimulation stages after successfully running the liner to bottom. Also in Richland County, Brigham is in the process of recompleting the Voss 21-11H, which was purchased from another operator who drilled and completed it in August 2007 with a single fracture stimulation. The old liner was successfully removed from the wellbore and Brigham is in the process of cleaning out the entirety of the wellbore in preparation of running a liner with swell packers in order to stimulate the well with 28 stages.
Brigham is in the process of drilling the Beck 15-10 #1H in Roosevelt County. The Beck 15-10 #1H is located approximately five miles north of the Rogney 17-8 #1H, which was completed in August 2010.
Williston Basin Operated North Dakota Well Result Update
Brigham has now completed 51 consecutive long lateral high frac stage wells in North Dakota with an average early 24-hour peak flow back rate of approximately 2,858 barrels of oil equivalent per day. The following table updates Brigham's North Dakota long lateral, high frac stage well results:
Early 24-Hour Peak Flow
Back Rate
------------------------
Barrels of
Crude Oil
County, Working Oil Natural Equivalent
Well State Objective Stages Interest (1) Gas (2) (3)
------------ ------------ --------- ------ -------- ----- ------- ----------
Knoshaug
14-11 #1H Williams, ND Bakken 36 50% 3,761 4.09 4,443
Gibbins
1-12 #1H McKenzie, ND Bakken 33 55% 2,305 1.66 2,582
Average 3,513
1. Barrels of crude oil.
2. Millions of cubic feet of natural gas (MMcf).
3. Converted to barrels of oil equivalent using the ratio of six Mcf of
natural gas per barrel of crude oil.
Williston Basin Operated Drilling and Completion Update
Brigham's 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 the aforementioned operated rig drilling in Roosevelt County, Montana. Brigham's eighth and ninth operated rigs are currently expected to arrive in May and September 2011, respectively.
Brigham currently has two wells flowing back, two wells fracing and 12 wells waiting on completion.
By mid-April, Brigham expects to add additional fracture stimulation capacity thereby providing access to two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. At that time, Brigham estimates that a minimum of eight wells per month will be fracture stimulated and brought on line to production due to the efficiencies gained by simultaneous stimulations.
Year-End 2010 Proved Reserves
As previously announced, Brigham increased its proved reserves by 141% to 66.8 million barrels of equivalent. Proved reserves were 78% crude oil and were 35% proved developed. During the year, Brigham drilled 44 net wells, 39 of which were located in the Williston Basin. At year-end 2010, approximately 58 net proved developed and 96 net proved undeveloped locations were booked in the Williston Basin, representing approximately 7% and 12% of Brigham's total available de-risked inventory of locations based on four well spacing per producing horizon. Revisions included approximately 0.8 million barrels of oil equivalent in conventional natural gas reserves that were removed from proved reserves as they were unlikely to be drilled within the five year development window required under SEC rules.
Brigham's reserve reconciliation is provided in the table below:
Equivalent Reserves
(MMBoe)
--------------------
2010 Beginning Proved Reserves 27.7
Extensions, discoveries & other additions 39.1
Revisions of prior estimates 3.4
Purchases of minerals-in-place 0.2
Sale of minerals-in-place (0.6)
Production (3.0)
--------------------
2010 Ending Proved Reserves 66.8
====================
During 2010, Brigham spent approximately $280.1 million on drilling capital and $112.2 million on land. Proved drilling and land finding and development costs for 2010 based on additions and revisions were $9.23 per barrel of oil equivalent. Proved developed finding costs based on the aforementioned drilling capital and excluding purchases were estimated to be approximately $16.75 per barrel of oil equivalent. Brigham's operated Bakken / Three Forks proved developed finding costs were estimated to be $15.57 per barrel of oil equivalent versus $25.83 per barrel of oil equivalent for non-operated volumes.
Management Comments
Bud Brigham, the Chairman, President and CEO, commented, "We're very excited to announce the acceleration of our operated activity in the Williston Basin to 12 rigs. Our highly skilled and innovative staff has successfully and seamlessly executed our current acceleration and I believe we will continue with the successful and seamless integration of the four additional rigs contemplated with our ramp up to 12 rigs."
Bud Brigham continued, "Our staff is continuing to innovate and has focused attention on the capital cost side of the return equation given the 782 total net de-risked locations we have to drill in our Ross and Rough Rider project areas. In my opinion, the utilization of smart pad drilling will clearly enhance returns via reduced costs but will also make utilization of our service provider crews more efficient. For example, we should, with the implementation of simultaneous fracture stimulations, be able to complete additional wells with the same number of dedicated frac crews. As we've de-risked vast areas of acreage, we are moving into full scale development mode in these areas. Our team is and will continue to work diligently towards beginning to capture and quantify those efficiencies in 2011."
Bud Brigham continued, "We continue to work towards de-risking our Montana acreage with the drilling and completion of additional wells in both Roosevelt and Richland Counties. We believe the Swindle 16-9 #1H had a good outcome given the issues encountered while attempting to run our liner to bottom. We are currently fracing the Johnson 30-19 #1H, recompleting the Voss 20-11H and drilling the Beck 15-10 #1H. Furthermore, industry activity is accelerating in Eastern Montana as operators secure additional acreage and begin to drill wells."
Bud Brigham concluded, "Our numerous opportunities to improve returns by enhancing recoveries and reducing costs will be exciting initiatives in 2011. Our record 2010 reserve additions announced earlier this year already created positive operational momentum for a strong 2011. We look forward to updating our stockholders on our numerous initiatives and catalysts as we move through the remainder of 2011."
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
Director of Finance and Investor Relations
(512) 427-3300
Tues.,Feb. 22, 2011 News - Brigham Exploration Announces Fourth Quarter 2010 Earnings Conference Call
Brigham Exploration Company (NASDAQ: BEXP) will hold its conference call to discuss operational and financial results for the fourth quarter 2010 on Friday, February 25, 2011 at 11:00 AM ET (10:00 AM CT). Brigham also plans to issue an earnings press release after the close of market trading on Thursday, February 24, 2011.
Interested parties may dial in using the instructions below, or visit Brigham's website for the live and archived webcast at http://www.bexp3d.com. Details for the conference call are as follows:
Date & Time:
Friday, February 25, 2011
11:00 AM ET (10:00 AM CT)
Host:
Bud Brigham - Chairman, CEO and President
Dial-In Number:
877.398.9480 within U.S./Canada
708.290.1157 outside U.S./Canada
Conference ID:
43080127
Telephone Replay Number:
800.642.1687 within U.S./Canada
706.645.9291 outside U.S./Canada
Telephone Replay Available Through:
March 4, 2011
Webcast Address:
http://www.bexp3d.com
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.
Contact:
Rob Roosa
Finance Director
(512) 427-3300
Feb 4, 2011 News - Brigham Exploration to Present at the Credit Suisse 2011 Energy Summit Feb 9th
Members of Brigham Exploration Company's (NASDAQ: BEXP) management team will be presenting at the Credit Suisse 2011 Energy Summit in Vail on Wednesday, February 9, 2011 at the Vail Cascade Resort & Spa. A copy of our corporate presentation will be available on the Company's website beginning Tuesday, February 8, 2011 at www.bexp3d.com. Details regarding the conference are as follows:
Date & Time:
Wednesday, February 9, 2011 at 9:25 AM Mountain Time
Presenter:
Eugene B. Shepherd, Jr. - Executive Vice President and CFO
Address for Audio Webcast & Replay:
http://cc.talkpoint.com/cred001/020611a_ah/?entity=50_EPMKKDQ
www.bexp3d.com
Venue:
Vail Cascade Resort & Spa
1300 Westhaven Drive
Vail, CO 81657
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.
Contact:
Rob Roosa
Finance Director
(512) 427-3300
Jan 27, 2011 News for 'BEXP' - Brigham Exploration 2010 Proved Reserves 66.8M Boe
Brigham Exploration Announces Record Year-End 2010 Proved Reserves, Record Estimated Fourth Quarter 2010 Production and Provides
Brigham Exploration Company (NASDAQ: BEXP) announced that year-end 2010 proved reserves increased 141% to a record 66.8 million barrels of oil equivalent (Boe). Brigham also announced that fourth quarter 2010 production volumes are estimated to be a record 11,384 barrels of equivalent per day (Boepd), which represents a 125% increase from the fourth quarter 2009 and a 34% sequential increase. Further, Brigham announced the completion of four high rate North Dakota Bakken wells at an average early 24-hour peak flow back rate of 3,078 Boe. To date, Brigham has completed 49 consecutive long lateral, high frac stage Bakken and Three Forks wells in North Dakota at an average early 24-hour peak flow back rate of 2,831 Boe. Finally, Brigham provided an update on its drilling and completion activities in the Williston Basin.
Year-End 2010 Proved Reserves
Brigham's proved reserves totaled a company record 66.8 million Boe at year-end 2010. Brigham grew reserves 141% during the year and replaced 1427% of its estimated 2010 production volumes. Additions including revisions increased reserves 42.5 million Boe and were primarily attributable to the Company's highly successful drilling efforts in the Williston Basin Bakken and Three Forks plays, where Brigham grew reserves 260% to 55.4 million Boe. At year-end 2010, Brigham's high value oil volumes comprised a record 78% of proved reserves as compared to 60% at year-end 2009. Proved developed reserves comprised 35% of year-end 2010 reserves, as compared to 37% at year-end 2009.
For year-end 2010, reserve calculations were based on the average first day of the month price for the prior 12 months. The prices utilized for the year-end 2010 reserve report were $79.43 per barrel of crude oil and $4.38 per Mmbtu of natural gas. Utilizing these prices, Brigham's pre-tax PV10% Value of its proved reserves was $1.1 billion, which represents a 336% increase from year-end 2009. Using strip prices as of December 31, 2010, the pre-tax PV10% Value of Brigham's proved reserves would have been $1.5 billion.
Pre-tax PV10% Value is the estimated present value of the future net revenues from Brigham's proved oil and natural gas reserves before income taxes, discounted using a 10% discount rate. Pre-tax PV10% Value is considered a non-GAAP financial measure under SEC regulations because it does not include the effects of future income taxes, as is required in computing the standardized measure of discounted future net cash flows. Brigham believes that pre-tax PV10% Value is an important measure that can be used to evaluate the relative significance of its oil and natural gas properties and that pre-tax PV10% Value is widely used by security analysts and investors when evaluating oil and natural gas companies. Because many factors that are unique to each individual company impact the amount of future income taxes to be paid, the use of a pre-tax measure provides greater comparability of assets when evaluating companies. Brigham believes that most other companies in the oil and natural gas industry calculate pre-tax PV10% Value on the same basis. Pre-tax PV10% Value is computed on the same basis as the standardized measure of discounted future net cash flows, but without deducting income taxes. The reconciliation of Brigham's Pre-tax PV10% Value to its standardized measure will be included in its Brigham's Form 10-K as the information necessary to compute the standardized measure is not yet available.
Brigham's proved reserves as of December 31, 2010 were prepared by the independent reserve engineering firm Cawley, Gillespie & Associates, Inc. in accordance with SEC guidelines.
Estimated Fourth Quarter 2010 Production
Brigham's estimated average daily production volumes for the fourth quarter 2010 were a quarterly record 11,384 Boepd, up 125% from the fourth quarter 2009 and up 34% from the third quarter 2010. Brigham's previous record quarterly production volumes were 8,509 Boepd in the third quarter 2010.
Benefiting from both its operated and non-operated drilling activity in the Williston Basin, Brigham's high value crude oil production volumes for the fourth quarter 2010 averaged 9,129 barrels of crude oil per day, which represents a 218% increase from that in the fourth quarter 2009 and a 44% sequential increase from that in the third quarter 2010. Brigham's high value crude oil production volumes represented 80% of its total production volumes in the fourth quarter 2010, as compared to 57% in the fourth quarter 2009 and 75% in the third quarter 2010.
Brigham's production volumes in the Williston Basin for the fourth quarter 2010 were 9,359 Boepd, which represents a 272% increase from that in the fourth quarter 2009 and a 45% sequential increase from that in the third quarter 2010.
Production volumes include approximately 135 barrels of crude oil per day of inventory build during the fourth quarter.
Williston Basin Operated Well Result Update
The following table updates Brigham's long lateral, high frac stage well results:
Early 24-Hour Peak Flow
Back Rate
--------------------------
Barrels of
Oil
County, Working Crude Natural Equivalent
Well State Objective Stages Interest Oil (1) Gas (2) (3)
----------- ----------- --------- ------ -------- ------- ------- ----------
Lloyd 34-3 McKenzie,
#1H (4) ND Bakken 31 29% 3,240 4.74 4,030
Bratcher McKenzie,
10-3 #1H ND Bakken 30 91% 3,206 2.76 3,667
M. Macklin Williams,
15-22 #1H ND Bakken 38 89% 2,312 1.34 2,534
M. Olson Williams,
20-29 #1H ND Bakken 38 91% 1,936 0.86 2,080
Average 3,078
(1) Barrels of crude oil.
(2) Millions of cubic feet of natural gas (MMcf).
(3) Converted to barrels of oil equivalent using the ratio of six Mcf of natural gas per barrel of crude oil.
(4) Represents joint venture well completed with U.S Energy Corp. (NASDAQ: USEG)
Williston Basin Operated Drilling and Completion Update
Brigham's accelerated development of its acreage in North Dakota and Montana is proceeding with five operated rigs drilling in Rough Rider and two operated rigs drilling in Ross. Brigham's eighth operated rig is currently expected to arrive in May 2011.
Brigham currently has one well flowing back, two wells fracing and ten wells waiting on completion. Brigham is currently fracing the Swindle 16-9 #1H, which is located in Roosevelt County, Montana, and will frac the Johnson 30-19 #1H, which is located in Richland County, Montana, in mid-February.
By mid-April, Brigham expects to add additional fracture stimulation capacity thereby providing access to two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. 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, "In our view, the Williston Basin Bakken and Three Forks plays are the highest value resource plays in North America, and our 2010 proved reserve growth clearly demonstrates that Brigham Exploration is a technological leader in these plays. Our record 2010 reserves and production growth reflect the substantial net asset value we've created for investors in 2010. This was achieved at very attractive drilling and leasehold acquisition finding and development costs, which excludes the cost of our field level infrastructure investment, of roughly $10 per proved barrel of oil equivalent. Importantly, given that we're very early in the development of this world class resource, we estimate that we've drilled only 7% of our core de-risked locations across our approximate 205,600 net acres assuming four well spacing per producing horizon. In light of our remarkable transformational year, I want to personally commend our employees for these terrific results, the credit goes to them for their efforts to continue to innovate and be the leader in the Williston Basin."
Bud Brigham continued, "Looking ahead, given the significant drilling inventory remaining on our core acreage, our ongoing drilling to further delineate the economics of our Rough Rider Three Forks and Montana Bakken locations, the potential to increase the number of density wells per spacing unit, and the success we've achieved acquiring additional acreage, I believe that 2010 is just the first of many years of significant, low cost reserve additions for our shareholders. As other companies are striving to become liquids rich, we already have the oil manufacturing machine up and running with 80% of our production volumes driven by high value crude oil. The oil manufacturing machine is expandable as well, as we continue to engage with service providers to ramp up our rig count beyond the eight rigs we will have running by May."
Bud Brigham concluded, "In addition to our efforts to increase our drilling inventory and accelerate the development of the associated net asset value, we have internally developed a number of initiatives that we will test during 2011 to further enhance estimated ultimate recoveries. Furthermore, we are at the very early stages of investigating opportunities to reduce costs through drilling and completion efficiencies. Overall, 2011 looks to be a very exciting year and one in which we anticipate making substantial progress in our goal of 'No Oil Left Behind™.'"
Disclosure Statements
The production and financial information in the release is unaudited and subject to revision. Audited and final results will be provided in our Annual Report on Form 10-K for the year ended December 31, 2010 currently planned to be filed with the Securities and Exchange Commission by the end of February or early March 2011.
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
Jan 3, 2011 News - 'BEXP' - Brigham Exploration to Present at the Pritchard Capital Energize 2011 Conference
AUSTIN, TX, Jan 03, 2011 (MARKETWIRE via COMTEX) -- Members of Brigham Exploration Company's (NASDAQ: BEXP) management team will be presenting at the Pritchard Capital Energize 2011 Conference in San Francisco on Wednesday, January 5, 2011 at The Westin San Francisco Market Street. A copy of our corporate presentation will be available on the Company's website beginning Wednesday, January 5, 2011 at www.bexp3d.com. Details regarding the conference are as follows:
Date & Time: Wednesday, January 5, 2011 at 8:55 AM Pacific Time
Presenter: Robert M. Roosa - Finance Manager
Venue: The Westin San Francisco
Market Street 50 Third Street
San Francisco, CA 94103
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.
Contact:
Rob Roosa
Finance Manager
(512) 427-3300
SmartTrend issued an uptrend... sometimes I wonder why they bother. Oil received a boost today in the DOE reported numbers. But all commodities are batting against the dollar's rise.
Brigham Exploration Bullish Moving Average Crossover Alert (BEXP)
Dec 15, 2010 (SmarTrend(R) Market Surveillance via COMTEX) -- Today, shares of
Brigham Exploration (NASDAQ:BEXP) have crossed bullishly above their 10-day
moving average of $26.89 on volume of 496 thousand shares.
This may provide swing traders with an opportunity for a long position as such a
crossover often suggests higher prices in the near term. Watch for a close above
this moving average level for confirmation.
SmarTrend issued an Uptrend Alert for Brigham Exploration on August 02, 2010 at
$17.80. In approximately 5 months, Brigham Exploration has returned 51.2% as of
today's recent price of $26.92.
In the past 52 weeks, shares of Brigham Exploration have traded between a low of
$11.27 and a high of $28.15 and are now at $26.92, which is 139% above that low
price.
In the last five trading sessions, the 50-day MA has climbed 3.47% while the
200-day MA has risen 1.34%.
DEC. 15, 2010 News for 'BEXP' - Brigham Exploration Announces Five High Rate Bakken Completions
and Provides an Operational Update
AUSTIN, TX, Dec 15, 2010 (MARKETWIRE via COMTEX) -- Brigham Exploration Company
(NASDAQ: BEXP) announced the completion of five high rate Bakken wells at an
average early 24-hour peak flow back rate of 3,085 barrels of oil equivalent. To
date, Brigham has completed 45 consecutive high frac stage, long lateral Bakken
and Three Forks wells in North Dakota at an average early 24-hour peak flow back
rate of 2,810 barrels of oil equivalent. Brigham also provided an update on its
drilling and completion activities in the Williston Basin.
Williston Basin Operated Well Result Update
The following table updates Brigham's high frac stage long lateral well results:
Early 24-Hour Peak Flow
Back Rate
------------------------
Barrels
Crude of Oil
Object Working Oil Natural Equivalent
Well County, State -ive Stages Interest (1) Gas (2) (3)
-------------- ------------- ------ ------ -------- ----- ------- ----------
Arvid Anderson
14-11 #1H Mountrail, ND Bakken 38 68% 2,834 2.14 3,191
Roger Sorenson
8-5 #1H Mountrail, ND Bakken 38 54% 2,347 1.87 2,658
Heen 26-35 #1H Williams, ND Bakken 38 76% 3,425 2.19 3,791
Brakken
30-31 #1H Williams, ND Bakken 30 56% 2,804 4.61 3,573
Lippert
1-12 #1H Williams, ND Bakken 31 66% 2,000 1.29 2,214
Average 3,085
(1) Barrels of crude oil. (2) Millions of cubic feet of natural gas (MMcf). (3)
Converted to barrels of oil equivalent using the ratio of 6 Mcf of natural gas
per barrel of crude oil.
Williston Basin Operated Drilling and Completion Update
Brigham's accelerated development of its acreage in North Dakota and Montana is
proceeding with three operated rigs drilling in Rough Rider, three operated rigs
drilling in Ross and one operated rig drilling in Richland County, Montana.
Brigham's eighth operated rig is currently expected to arrive in May 2011.
Brigham currently has two wells flowing back, two wells fracing and eight wells
waiting on completion. Brigham anticipates fracing the Swindle 16-9 #1H located
in Roosevelt County, Montana early in the first quarter 2011. Shortly
thereafter, Brigham will frac the Johnson 30-19 #1H, which is located in
Richland County, Montana.
In the first quarter 2011, Brigham expects to add additional fracture
stimulation capacity thereby providing access to two fully dedicated frac crews
focused on completing Brigham operated horizontal wells in the basin. At that
time, Brigham estimates that approximately eight wells per month will be
fracture stimulated and brought on line to production.
Bud Brigham, the Chairman, President and CEO, commented, "2010 has been a year
of incredible transformation as we rapidly increased our operated rig count from
four to seven rigs and we've seen our production, and most importantly our high
value crude oil production, grow to record levels."
Bud Brigham continued, "We expect 2011 to be equally if not more exciting than
2010. We expect to add our eighth rig in May 2011 and to have two fully
dedicated frac crews running in the first quarter 2011. In the interim, we're
actively working to develop an executable plan to increase our rig count further
in order to accelerate drilling in one of the most exciting and economic oil
resource plays in the United States. Furthermore, we are optimistic that we can
add to our already extensive development drilling inventory with our Montana
Bakken and Rough Rider Three Forks drilling and completions during the first
half of 2011. During 2011 we also anticipate the potential confirmation of the
opportunity to drill four or more wells per spacing unit with our infill
drilling program, striving towards our goal of 'No Oil Left Behind.'"
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
SOURCE: Brigham Exploration
Brigham Exploration (BEXP) was downgraded to neutral by MKM Partners and to Outperform (from Strong Buy) at Raymond James Financial. BMO Capital Markets upgraded the driller to Market Perform with a target of $26. Jefferies kept its Buy rating but raised its target to $32 from $20.
Its onward and upward now. Took advantage of the small consolidation to have some associates average up. Going to be a very nice batting average next year for BEXP. Swing batta batter!
Looks like we are regaining an upward trend line again.
Also here is a SmarTrend PR on BEXP today:
News for 'BEXP' - (Brigham Exploration Upward Momentum Looks to Continue (BEXP))
Dec 06, 2010 (SmarTrend(R) Spotlight via COMTEX) -- SmarTrend identified an
Uptrend for Brigham Exploration (NASDAQ:BEXP) on August 02, 2010 at $17.80. In
approximately 4 months, Brigham Exploration has returned 53.2% as of today's
recent price of $27.27.
In the past 52 weeks, shares of Brigham Exploration have traded between a low of
$10.01 and a high of $27.13 and are now at $27.27, which is 172% above that low
price.
Brigham Exploration is currently above its 50-day moving average of $22.13 and
above its 200-day moving average of $18.25. Look for these moving averages to
climb to confirm the company's upward momentum.
In the last five trading sessions, the 50-day MA has climbed 4.55% while the
200-day MA has risen 1.39%.
SmarTrend will continue to scan these moving averages and a number of other
proprietary indicators for any shifts in the trajectory of Brigham Exploration
shares.
Write to Chip Brian at cbrian@tradethetrend.com
Right on que it has a nice consolidation or what I like to call buying opportunity. This one is set up to continue it stellar growth IMO.
Over the past 12 months, Brigham has risen 128% versus an S&P 500 return of 11.3%. Investors in Brigham have every reason to be proud of their returns, but is it time to take some off the top? Not necessarily.
Recent Price $24.46
52-Week High $25.75
5-Year High $25.80
While I would love to be all cheer here there are a number of factors that are worth watching over the next few quarters that should dictate whether we continue our streak or not.
First the price / earnings ration has substantially growth over the last few years to over 80. What is keeping this moving is the strong growth prospects. Then there has been a gradual decline in their gross margins over the last few years but as we all know this has been main street for many stocks during the "great recession". Here, short interest is at a high 8.4%. This typically indicates that large institutional investors are betting against the stock. I consider a debt-to-equity ratio below 50% to be healthy, though it varies by industry. Brigham is slightly above this level, at 53.2%.
Does this mean we should take profits and sell? I wouldn't go that far, this one has a lot of upside based on commodity price increases in 2011 and new developments but I do recommend you keep an eye on these factors mentioned above that will impact this stock one way or another.
Check out what others are saying:
http://caps.fool.com/Ticker/BEXP/Commentary/Page1.aspx
NO DOUBT!! Look at the filings!!!
He has ties to BEXP and now has his new company, TRDY! Could this be in the making of his own gas & oil company!!! Could make alot of people very rich ! xi
Mr. Larson's NEW COMPANY!!!
She is so cheap we can be millionaires if we buy in now!!
Great post. Yes, it has been a very nice ride up to this area. I also agree to the possibility that consolidation looks perfectly timed here with record crude prices coming in. Nat gas is not so lucky. But I will maintain a position with BEXP due to the dollar at this time.
This is the first year that oil peaked after Aug 15th. It is a different year in many regards for commodities and producers.
Admittedly they have been performing very well possibly outperforming since their departure from $16 back in September so I wouldn't be surprised to see a consolidation to some extent.
Great results to help sustain the recent gain IMO.
NOV 10 - News for 'BEXP' - (Brigham Exploration Co. Slashed to Outperform by Raymond James
Financial, Inc. (BEXP,RFJ))
Nov 10, 2010 (SmarTrend News Watch via COMTEX) -- Brigham Exploration Co.'s
(NASDAQ:BEXP) rating was lowered by Raymond James Financial, Inc. (NYSE:RJF) on
Wednesday, from Strong Buy to Outperform, reports StreetInsider.com.
Brigham Exploration, an independent exploration and production company, applies
3-D seismic imaging and other technologies to explore and develop onshore
domestic natural gas and oil resources.
The company's exploration activities are concentrated primarily in the Anadarko
Basin, the Gulf Coast, the Williston Basin, and the west Texas region of the
United States.
Brigham Exploration is currently above its 50-day moving average (MA) of $19.07
and above its 200-day of $17.32.
In the last five trading sessions, the 50-day MA has climbed 3.78% while the
200-day MA has risen 1.42%.
Shares of the firm are trading up 2.82% at $24.06.
Brigham Exploration (BEXP) is a independent exploration, development and production company that utilizes 3-D seismic imaging and other advanced technologies to systematically explore for and develop domestic onshore oil and natural gas reserves.
As stated: We focus our exploration and development activities in provinces where we believe technology and the knowledge of our technical staff can be used effectively to maximize our return on invested capital by reducing drilling risk and enhancing our ability to grow reserves and production volumes.
In the latest quarterly filing:
Oil Revenues: $34,423 (84.8%) – Oil Revenues YoY up 325%
Gas Revenues: $6,141 (16.2%) – Gas Revenues YoY Up 20%
The company recently changed its focus. In late 2007, the majority of our drilling capital expenditures shifted from our historically active areas in the Onshore Gulf Coast, the Anadarko Basin and West Texas to the Williston Basin, where we are currently targeting the Bakken, Three Forks and Red River objectives.
Williston Basin has a much greater level of oil versus natural gas. In fact, in a recent conversation with the company I asked the question of what is the plan for the company in terms of natural gas versus oil. Basically, the company is reducing the focus as natural gas pricing is a losing game right now. The change from a 60/30 mix of oil/nat. gas to a 90/10 is therefore purposeful.
In fact, 90% of capex expenditures for the foreseeable future will be devoted to the Williston Basis, which is primarily drilled for oil. Currently, Brigham has 6 rigs running and will ramp to 8 with the next 12 months.
More here: http://seekingalpha.com/article/232406-brigham-exploration-little-known-big-potential
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(NASDAQ:BEXP) Brigham Exploration Company (BEXP) engages in the exploration, development, and production of oil and natural gas in the United States. The company owns property interests in the Onshore Gulf Coast consisting of the Vicksburg trend in Brooks County, Texas; the Frio trend in and around Matagorda County, Texas; and joint venture interests in southern Louisiana. Brigham Exploration also holds interest in Hunton Trend in the Anadarko Basin; Powder River Basin and Williston Basin in the Rocky Mountains; and west Texas. As of December 31, 2006, it had 146.5 billion cubic feet of natural gas equivalent of total estimated, proved reserves. The company sells its oil and natural gas to intrastate pipeline purchasers, operators of processing plants, and marketing companies. Brigham Exploration was founded in 1990 and is headquartered in Austin, Texas.
The Company's exploration and development activities are focused in the Rocky Mountains, Onshore Gulf Coast, the Anadarko Basin and West Texas. During the year ended December 31, 2009, the Company drilled, completed 57 gross wells, consisting of two exploratory wells and 55 development wells with an average completion rate of 98%. The natural gas is sold to various purchasers, including intrastate pipeline purchasers, operators of processing plants, and marketing companies under both monthly spot market contracts and multi-year arrangements.
COMPANY WEB SITE
http://www.bexp3d.com/
SHARES OUTSTANDING
46,127,000
COMPANY REPORTS
FORM 10-K, ANNUAL REPORT, 7-Mar-2008
http://biz.yahoo.com/e/080307/bexp10-k.html
November 23, 2011
Statoil (NYSE: STO) (OSLO: STL) and Brigham Exploration Company (NASDAQ: BEXP) have decided to make voluntary filings with the U.S. Committee on Foreign Investment in the United States (CFIUS) in connection with Statoil's previously announced acquisition of Brigham. The filing is voluntary and consistent with Statoil's policy to cooperate with all relevant governmental authorities in the United States, including CFIUS. Statoil will pay for shares consistent with the pending tender offer. Neither the filing nor completion of the CFIUS review is a condition to closing of Statoil's pending tender offer for shares of common stock of Brigham Exploration. The initial tender offer is currently scheduled to expire at midnight NYC time on November 30, 2011.
Additional Information
This communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Brigham Exploration Company or any other securities. Statoil ASA and Fargo Acquisition Inc. have filed a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, with the United States Securities and Exchange Commission (the "SEC"). The offer to purchase shares of Brigham common stock (the "Offer") will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed with such Schedule TO. INVESTORS AND STOCKHOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT, AS FILED AND AS IT MAY BE AMENDED FROM TIME TO TIME, AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS FILED AND AS IT MAY BE AMENDED FROM TIME TO TIME, BECAUSE THEY CONTAIN IMPORTANT INFORMATION REGARDING THE OFFER. The solicitation/recommendation statement on Schedule 14D-9 has been filed with the SEC by Brigham. Investors and stockholders may obtain a free copy of these statements (when available) and other documents filed with the SEC free of charge at the website maintained by the SEC at www.sec.gov or by directing such requests to Innisfree M&A Incorporated at (877) 687-1875.
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 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.
Statoil Further Information
=///////////=
July 26, 2011
Interested parties may dial in using the instructions below, or visit Brigham's website for the live and archived webcast at http://www.bexp3d.com. Details for the conference call are as follows:
Date & Time: Tuesday, August 9, 2011 11:00 AM ET (10:00 AM CT) Host: Bud Brigham - Chairman, CEO and President Dial-In Number: 877.398.9480 within U.S./Canada 708.290.1157 outside U.S./Canada Conference ID: 86489005 Telephone Replay Number (toll-free): 855.859.2056 Telephone Replay Available Through: August 16, 2011 Webcast Address: http://www.bexp3d.com/
April 3, 2011
Brigham Exploration Company (NASDAQ: BEXP) today announced financial results for the quarter ended March 31, 2011.
FIRST QUARTER 2011 RESULTS
Our average daily production volumes for the first quarter 2011 were 11,314 barrels of crude oil equivalent (Boe) per day, up 109% from the first quarter 2010 and down 1% from the fourth quarter 2010.
Benefiting from both our operated and non-operated drilling activity in the Williston Basin, our high value crude oil production volumes for the first quarter 2011 averaged 9,211 barrels of crude oil per day, which represents a 159% increase from that in the first quarter 2010 and up 1% from that in the fourth quarter 2010. Our high value crude oil production volumes represented 81% of our total production volumes in the first quarter 2011, as compared to 66% in the first quarter 2010 and 80% in the fourth quarter 2010.
Our production volumes in the Williston Basin for the first quarter 2011 were 9,371 Boe per day, which represents a 190% increase from that in the first quarter 2010 and a slight increase from that in the fourth quarter 2010. During March 2011, our Williston Basin volumes exceeded 10,000 Boe per day for the first time in our history.
Our first quarter production volumes included approximately 732 barrels of crude oil produced during the first quarter 2011 and added to inventory. Adjusting our production volumes for amounts included in inventory resulted in first quarter 2011 daily sales volumes of 11,306 Boe per day.
Revenues from the sale of crude oil and natural gas, including cash hedge settlements for the first quarter 2011, were up 158% to $76.0 million as compared to that in the first quarter 2010. Higher crude oil sales volumes and crude oil prices increased revenues by $37.3 million and $9.4 million, respectively. Higher natural gas sales volumes also increased revenue by $0.8 million. Lower cash hedge settlements and natural gas prices decreased revenues by $0.5 million and $0.5 million, respectively.
During the first quarter 2011, our average realized price for crude oil was $82.76 per barrel, which included a $1.27 loss from the cash settlement of our crude oil derivative contracts. This compares to an average realized price in the first quarter 2010 of $72.39 per barrel, which included a $0.30 per barrel cash loss due to the settlement of our crude oil derivative contracts. Our average realized price for natural gas inclusive of natural gas liquids in the first quarter 2011 was $6.57 per Mcf, which included a $0.96 per Mcf cash gain due to the settlement of our natural gas derivative contracts. This compares to an average realized price in the first quarter 2010 of $6.68 per Mcf, which included a $0.67 per Mcf cash gain due to the settlement of our natural gas derivative contracts.
Our first quarter 2011 production costs, which include costs for operating and maintaining (O&M expense) our producing wells, expensed workovers, ad valorem taxes and production taxes, were up $0.95 per Boe when compared to that in the first quarter 2010. The increase was attributable to a $2.37 per Boe increase in production taxes, which was driven by higher commodity prices and higher levels of production in North Dakota, which are subject to an 11.5% tax rate. This increase was partially offset by a $1.48 per Boe decrease in expensed workovers due to fewer workovers.
Our general and administrative (G&A) expenses for the first quarter 2011 decreased by $3.07 per Boe as compared to the prior year's quarter due to our higher production volumes. The per unit decrease associated with our higher production volumes was partially offset by an increase in employee compensation costs due to higher levels of employee salaries in 2011 to ensure competitive compensation levels with other oil and gas companies, and a higher number of employees due to our growth in activity in the Williston Basin.
Our depletion expense for the first quarter 2011 was $18.9 million ($18.61 per Boe) compared to $9.2 million ($19.07 per Boe) in the first quarter 2010. Our higher sales volumes increased depletion expense by $10.2 million while our lower depletion rate decreased depletion expense by $0.5 million.
Our net interest expense for the first quarter 2011 was $0.5 million higher than that in the first quarter 2010. Interest expense increased due to the September 2010 issuance of our $300 million Senior Notes due 2018 and was partially offset by an increase in our capitalized interest associated with our higher level of drilling activity in the Williston Basin.
We recorded deferred income tax expense of $0.2 million in the first quarter 2011, which consists of $0.1 million in deferred federal income tax expense and $0.1 million in deferred North Dakota state income tax expense.
Our reported net income for the first quarter 2011 was $1.6 million ($0.01 per diluted share) versus net income of $11.3 million ($0.11 per diluted share) for the same period last year. Our after-tax earnings in the first quarter 2011 excluding unrealized mark-to-market hedging losses were $33.8 million ($0.29 per diluted share) as compared to our after-tax earnings in the first quarter 2010 excluding our unrealized mark-to-market hedging gains were $8.3 million ($0.08 per diluted share). After-tax earnings excluding the above items is a non-GAAP measure and a reconciliation of GAAP net income to after-tax earnings excluding the above items is included in our accompanying financial tables found later in this release.
Through March 31, 2011, we spent $122.8 million in oil and gas capital expenditures. Capital expenditures for the first three months of 2011 and 2010 were:
Three months ended March 31, ----------------------- 2011 2010 ----------- ----------- (in thousands) Drilling $ 110,778 $ 43,606 Support infrastructure 5,264 -- Land 6,770 8,477 ----------- ----------- Oil and gas capital expenditures $ 122,812 $ 52,083 Capitalized costs 6,641 4,569 Capitalized FAS 143 ARO 178 52 ----------- ----------- Total capital expenditures $ 129,631 $ 56,704 =========== ===========
SECOND QUARTER 2011 FORECASTS
The following forecasts and estimates of our second quarter 2011 production volumes are forward-looking statements subject to the risks and uncertainties identified in the "Forward-Looking Statements Disclosure" at the end of this release. We are forecasting that our second quarter 2011 production volumes to average between 12,000 Boe per day and 14,000 Boe per day and that our crude oil volumes will comprise approximately 82% of our second quarter production volumes.
For the second quarter 2011, lease operating expenses are projected to be $7.40 per Boe based on the mid-point of our production guidance, production taxes are projected to be approximately 10.0 to 10.5% of pre-hedge crude oil and natural gas revenues, and general and administrative expenses are projected to be $3.5 million ($2.99 per Boe).
MANAGEMENT COMMENTS
Gene Shepherd, Brigham's Chief Financial Officer, commented, "As we have demonstrated over the last two years, the consistency of our drilling results continues to give us excellent visibility as to the growth in production volumes and reserves that we expect to achieve in 2011. In addition to continuing to grow our inventory of development drilling locations in western North Dakota and eastern Montana, we expect 2011 to be a year where the company benefits from significant efficiencies in our drilling and completion techniques that should positively impact our costs in the second half of 2011 and in 2012. We expect these efficiencies to help offset the higher drilling and completion costs that we have experienced in 2011. Despite the increased costs, the 10% overage factor that was part of our February budget provides adequate protection against cost overruns such that we believe that we are still operating within our original 2011 budget."
Mr. Shepherd continued, "Given our record first quarter financial performance, strong balance sheet and accelerating level of drilling activity as we enter the second quarter, we look forward to 2011 being one of the most exciting years in our company's history."
CONFERENCE CALL INFORMATION
Our management will host a conference call to discuss operational and financial results for the first quarter 2011 with investors, analysts and other interested parties on Wednesday, May 4, at 11:00 a.m. Eastern Time. To participate in the call, participants within the U.S./Canada please dial 877-398-9480 and participants outside the U.S./Canada please dial 708-290-1157. The conference ID number for the call is 62089416. A telephone recording of the conference call will be available approximately two hours after the call is completed through 11:59 p.m. Eastern Time on Wednesday, May 11, 2011. To access the recording, U.S./Canada callers dial 800-642-1687 and international callers dial 706-645-9291. The conference ID number for the call is 62089416. In addition, a live and archived web cast of the conference call will be available over the Internet at www.bexp3d.com.
We will be updating our corporate presentation prior to our conference call and will reference information contained therein. We encourage you to access the presentation in advance of the conference call. To access the presentation, go to www.bexp3d.com and click on Corporate Presentation along the left side of our home page. In addition, a copy of this press release and other financial and statistical information about the periods covered by this press release and by the conference call that will take place on Wednesday, May 4, 2011, will be available on our website. To access the press release, go to www.bexp3d.com, click on Investor Relations and then click on Press Releases. The file with a copy of the press release is named Brigham Exploration Reports First Quarter 2011 Results and is dated Tuesday, May 3, 2011. To access the other financial and statistical information that will be covered by the conference call that will take place on Wednesday, May 4, 2011, go to www.bexp3d.com, click on Investor Relations and then click on Events & Presentations. The file with the other financial and statistical information is named Financial and Statistical Information for the First Quarter 2011 Conference Call and is dated Wednesday, May 4, 2011.
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 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 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 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.
BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended March 31, ---------------------- 2011 2010 ---------- ---------- Revenues: Crude oil sales $ 69,596 $ 22,870 Natural gas sales 6,367 6,060 Hedging settlements 50 582 ---------- ---------- 76,013 29,512 Unrealized hedging gains(losses) (36,008) 3,052 ---------- ---------- 40,005 32,564 Support infrastructure 594 -- Other revenue 2 9 ---------- ---------- Total Revenue 40,601 32,573 ---------- ---------- Costs and expenses: Lease operating 7,720 4,349 Production taxes 7,698 2,508 Support infrastructure 190 -- General and administrative 3,382 3,086 Depletion of oil and natural gas properties 18,940 9,211 Depreciation and amortization 971 233 Accretion of discount on asset retirement obligations 110 105 ---------- ---------- 39,011 19,492 ---------- ---------- Operating income (loss) 1,590 13,081 ---------- ---------- Other income (expense): Interest expense, net (3,378) (2,904) Interest income 367 453 Other income (expense) 3,154 685 ---------- ---------- 143 (1,766) ---------- ---------- Income (loss) before income taxes $ 1,733 $ 11,315 Income tax (expense) benefit: Current -- -- Deferred (179) -- ---------- ---------- (179) -- ---------- ---------- Net income (loss) $ 1,554 $ 11,315 ========== ========== Net income (loss) per share available to common stockholders: Basic $ 0.01 $ 0.11 ========== ========== Diluted $ 0.01 $ 0.11 ========== ========== Weighted average shares outstanding: Basic 116,359 99,444 ========== ========== Diluted 118,522 101,357 ========== ========== BRIGHAM EXPLORATION COMPANY PRODUCTION VOLUMES, SALES VOLUMES, SALES PRICES AND OTHER FINANCIAL DATA (unaudited) Three Months Ended March 31, ---------------- 2011 2010 ------- ------- Average net daily production volumes: Crude oil (Bbls) 9,211 3,552 Natural gas (MMcf) 12.6 11.2 Equivalent crude oil (Boe) (6:1) 11,314 5,420 Total net production volumes: Crude oil (MBbls) 829 320 Natural gas (MMcf) 1,136 1,009 Equivalent oil (MBoe) (6:1) 1,018 488 % Crude oil 81% 66% Increase in inventory: Crude oil (Bbls) 732 5,012 Natural gas (MMcf) -- -- Equivalent crude oil (Boe) (6:1) 732 5,012 Average net daily sales volumes (Average net production volumes less average net daily increase in inventory): Crude oil (Bbls) 9,203 3,496 Natural gas (MMcf) 12.6 11.2 Equivalent crude oil (Boe) (6:1) 11,306 5,364 Total net sales volumes (Total net production volumes less increase in inventory): Crude oil (MBbls) 828 315 Natural gas (MMcf) 1,136 1,009 Equivalent crude oil (MBoe) (6:1) 1,018 483 % Crude oil 81% 65% Sales price: Crude oil ($/Bbl) $ 84.03 $ 72.69 Natural gas ($/Mcf) 5.61 6.01 Equivalent crude oil ($/Boe) (6:1) 74.65 59.93 Sales price including derivative settlement gains (losses): Crude oil ($/Bbl) $ 82.76 $ 72.39 Natural gas ($/Mcf) 6.57 6.68 Equivalent crude oil ($/Boe) (6:1) 74.70 61.13 Sales price including derivative settlement gains (losses) and unrealized gains (losses): Crude oil ($/Bbl) $ 40.48 $ 73.90 Natural gas ($/Mcf) 5.70 9.23 Equivalent crude oil ($/Boe) (6:1) 39.31 67.45 SUMMARY CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 2011 31, 2010 ----------- ----------- Assets: Current assets $ 323,306 $ 360,857 Oil and natural gas properties, net (full cost method) 774,557 669,356 Other property and equipment, net 47,984 42,837 Other non-current assets 15,451 12,351 ----------- ----------- Total assets $ 1,161,298 $ 1,085,401 =========== =========== Liabilities and stockholders' equity: Current liabilities $ 236,747 $ 176,545 Senior notes 300,000 300,000 Other non-current liabilities 28,634 15,586 ----------- ----------- Total liabilities $ 565,381 $ 492,131 Stockholders' equity 595,917 593,270 ----------- ----------- Total liabilities and stockholders' equity $ 1,161,298 $ 1,085,401 =========== =========== BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, ---------------------- 2011 2010 ---------- ---------- Cash flows from operating activities: Net income (loss) $ 1,554 $ 11,315 Depletion, depreciation and amortization 19,911 9,444 Accretion of discount on ARO 110 105 Amortization of deferred loan fees and debt issuance costs 526 506 Non-cash stock compensation 747 427 Market value adjustments for derivatives instruments 36,008 (3,052) Deferred income tax expense 179 -- Provision for doubtful accounts (2) -- Other noncash items -- (1) Changes in operating assets and liabilities 7,178 7,229 ---------- ---------- Cash flows provided by operating activities $ 66,211 $ 25,973 Cash flows provided (used) by investing activities (65,525) (42,910) Cash flows provided (used) by financing activities (3,843) 632 ---------- ---------- Net increase (decrease) in cash and cash equivalents $ (3,157) $ (16,305) ========== ========== SUMMARY PER BOE DATA (unaudited) Three Months Ended March 31, ---------------------- 2011 2010 ---------- ---------- Revenues: Crude oil and natural gas sales $ 74.65 $ 59.93 Hedging settlements 0.05 1.20 Unrealized hedging gains (losses) (35.39) 6.32 Support infrastructure 0.58 -- Other revenue -- 0.02 ---------- ---------- $ 39.89 $ 67.47 ========== ========== Costs and expenses: Lease operating 7.58 9.00 Production taxes 7.56 5.19 Support infrastructure 0.19 -- General and administrative 3.32 6.39 Depletion of oil and natural gas properties 18.61 19.07 Depreciation and amortization 0.95 0.48 Accretion of discount on ARO 0.11 0.22 ---------- ---------- $ 38.32 $ 40.35 ---------- ---------- Operating income (loss) $ 1.57 $ 27.12 ========== ========== Interest expense, net of interest income (a) (2.96) (5.07) Other income (expense) 3.10 1.42 ---------- ---------- Adjusted income (loss) $ 1.71 $ 23.47 ========== ========== (a) Calculated as interest expense minus interest income divided by production for period. BRIGHAM EXPLORATION COMPANY RECONCILIATION OF GAAP NET INCOME TO AFTER-TAX EARNINGS EXCLUDING THE EFFECTS OF CERTAIN ITEMS (in thousands) Three months ended March 31, ---------------------- 2011 2010 ---------- ---------- Net income (loss) as reported $ 1,554 $ 11,315 Unrealized derivative (gains) losses 36,008 (3,052) Tax impact (3,720) -- ---------- ---------- Earnings excluding the effects of certain items $ 33,842 $ 8,263 ========== ========== Earnings without the effects of certain items represent net income excluding unrealized gains and losses on derivative contracts. Management believes that exclusion of these items enhances comparability of operating results between periods. BRIGHAM EXPLORATION COMPANY SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF MAY 3, 2011 (unaudited) 2011 2012 ---------------------- ------------------------------- Q2 Q3 Q4 Q1 Q2 Q3 Q4 ------ ------- ------- ------- ------- ------- ------- Crude Oil Costless Collars: Daily volumes Bbls/d 6,110 7,587 9,207 8,239 8,580 10,168 10,000 Floor $ /Bbl $65.68 $ 67.69 $ 70.84 $ 69.03 $ 69.46 $ 71.71 $ 73.99 Cap $ /Bbl $98.83 $103.57 $109.45 $109.07 $110.07 $114.56 $116.11 Crude Oil Floors: Daily volumes Bbls/d -- -- -- 1,500 1,500 1,500 1,500 Floor $ /Bbl $ -- $ -- $ -- $ 65.00 $ 65.00 $ 80.00 $ 80.00 Natural Gas Costless Collars: Daily volumes MMBtu/d 3,626 3,587 3,587 -- -- -- -- Floor $/MMBtu $ 5.48 $ 5.48 $ 5.48 $ -- $ -- $ -- $ -- Cap $/MMBtu $ 7.16 $ 7.16 $ 7.16 $ -- $ -- $ -- $ -- 2013 --------------- Q1 Q2 ------- ------- Crude Oil Costless Collars: Daily volumes Bbls/d 9,000 1,341 Floor $ /Bbl $ 80.38 $ 85.00 Cap $ /Bbl $125.25 $134.00 Crude Oil Floors: Daily volumes Bbls/d -- -- Floor $ /Bbl $ -- $ -- Natural Gas Costless Collars: Daily volumes MMBtu/d -- -- Floor $/MMBtu $ -- $ -- Cap $/MMBtu $ -- $ -- Hedged volumes and prices reflected in this table represent average contract amounts for the quarterly periods presented; crude oil hedge contract prices and natural gas hedge prices are based on NYMEX pricing.
Contact:
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February 24, 2011
Brigham Exploration Company (NASDAQ: BEXP) announced that it will begin its acceleration to 12 operated Williston Basin rigs in 2011. Brigham also announced micro-seismic monitoring and production results that appear to support four wells per producing horizon per 1,280 acre spacing unit, or eight total Bakken and Three Forks locations per spacing unit. Brigham announced that the Swindle 16-9 #1H, its second Montana Bakken completion, produced at an early 24-hour peak flow back rate of approximately 1,065 barrels of equivalent. Brigham also announced the completion of two additional North Dakota Bakken wells at an average early 24-hour peak flow back rate of 3,513 barrels of oil equivalent. Finally, Brigham provided an update on its drilling and completion activities in the Williston Basin.
Williston Basin Activity Accelerating to 12 Operated Rigs
Brigham announced that it plans to accelerate its Williston Basin operated rig count to 12 rigs by continuing to add an incremental operated rig every 4 months after adding its planned eighth rig in May 2011. Accelerating from eight to 12 operated rigs is anticipated to increase Brigham's drilling pace by approximately 44 gross wells per year, or approximately 29 net wells, once at the 12 operated rig level. Brigham anticipates reaching 12 operated rigs by September 2012.
Based on an accelerated level of activity in 2011, Brigham anticipates drilling approximately 66 net Williston Basin Bakken and Three Forks wells during 2011 as compared to approximately 39 net wells in 2010. Drilling capital is anticipated to be approximately $582.1 million in 2011, which incorporates a total per well cost of approximately $7.9 million plus a 10% budgeted overage.
Micro-seismic Monitoring and Early Production Supports Eight Total Wells Per 1,280 Acre Spacing Unit
Brigham announced that the interpretation of the micro-seismic data from the 18 square mile data set accumulated during the Brad Olson 9-16 #2H fracture stimulation indicates that frac wings appear to extend laterally approximately 500' on either side of the wellbore, or 1,000' in total, per well. Based on a one mile wide spacing unit, results from the micro-seismic monitoring appear to support development of at least four wells per producing horizon per 1,280 acre spacing unit, or approximately eight total Bakken and Three Forks wells per spacing unit.
Based on the increased density drilling opportunity, Brigham estimates that its de-risked drilling inventory in its Ross / Parshall / Austin and Rough Rider project areas has increased from 590 total net locations to approximately 782 total net locations.
Smart Pad Development
Brigham announced that it has initiated utilization of smart pad development in its Rough Rider and Ross project areas. Smart pad development can be implemented either by drilling multiple wells from the same location in a single spacing unit or by drilling stacked 1,280 acre spacing units, one to the north and one to the south, and drilling multiple wells in both spacing units from the same location. Smart pad development, once fully implemented, is anticipated to save approximately 10% to 20% per well on drilling and completion capital expenditures. Furthermore, smart pads are expected to reduce surface footprints and allow for consolidation of equipment and services into centralized facilities.
Drilling efficiencies are achieved by minimizing rig mobilization and demobilization times by placing wellbores in close proximity, which allows rigs to be moved without complete disassembly. Alternatively, "walking rigs," or rigs that can move short distances from wellhead to wellhead, also minimize rig related move time. To gain these additional advantages, Brigham has ordered two PACE "B" Series walking rigs from Nabors Drilling USA, LP (an operating unit of Nabors Industries, Ltd, (NYSE: NBR)) and expects to begin drilling operations with these rigs late in 2011 or early in 2012. Drilling efficiencies are also achieved by simultaneously drilling the same segment of multiple wellbores, which minimizes the amount of time spent laying down drill pipe and changing mud systems.
Completion efficiencies are achieved via the simultaneous fracture stimulation of wells in close proximity. While one well is fracing, the other well is undergoing perf and plug wire line procedures. Completion crews then alternate the fracing and wire line work between wells. Brigham has just completed its first simultaneous fracture stimulation in Ross with the Sorenson 29-32 #2H and the Cvancara 20-17 #1H. Based on initial results, it appears that approximately nine to 11 stages can be completed per day with simultaneous stimulation versus 6 stages per day while independently fracing wells.
In total, Brigham's large and concentrated acreage positions in Rough Rider and Ross provide approximately 188 operated 1,280 acre spacing units for potential smart pad development, where the company could drill as many as 1,504 gross wells. Brigham estimates that 112 of these spacing units are stacked units (two 1,280 acre spacing units that adjoin each other end to end), which provides additional drilling and completion efficiencies. Current 2011 drilling plans include 26 stacked units to be drilled in Rough Rider and Ross.
Montana Bakken Completion Results / Update
Brigham announced that the Swindle 16-9 #1H, which is located in Roosevelt County, produced approximately 1,065 barrels of oil equivalent during its early 24-hour peak flow back period. The well was completed with 19 fracture stimulation stages as the liner with swell packers did not reach total depth. Approximately 3,200' of the outermost wellbore was completed with a single open hole fracture stimulation.
Brigham is currently in the process of fracture stimulating the Johnson 30-19 #1H, which is located in Richland County, with 30 fracture stimulation stages after successfully running the liner to bottom. Also in Richland County, Brigham is in the process of recompleting the Voss 21-11H, which was purchased from another operator who drilled and completed it in August 2007 with a single fracture stimulation. The old liner was successfully removed from the wellbore and Brigham is in the process of cleaning out the entirety of the wellbore in preparation of running a liner with swell packers in order to stimulate the well with 28 stages.
Brigham is in the process of drilling the Beck 15-10 #1H in Roosevelt County. The Beck 15-10 #1H is located approximately five miles north of the Rogney 17-8 #1H, which was completed in August 2010.
Williston Basin Operated North Dakota Well Result Update
Brigham has now completed 51 consecutive long lateral high frac stage wells in North Dakota with an average early 24-hour peak flow back rate of approximately 2,858 barrels of oil equivalent per day. The following table updates Brigham's North Dakota long lateral, high frac stage well results:
Early 24-Hour Peak Flow Back Rate ------------------------ Barrels of Crude Oil County, Working Oil Natural Equivalent Well State Objective Stages Interest (1) Gas (2) (3) ------------ ------------ --------- ------ -------- ----- ------- ---------- Knoshaug 14-11 #1H Williams, ND Bakken 36 50% 3,761 4.09 4,443 Gibbins 1-12 #1H McKenzie, ND Bakken 33 55% 2,305 1.66 2,582 Average 3,513 1. Barrels of crude oil. 2. Millions of cubic feet of natural gas (MMcf). 3. Converted to barrels of oil equivalent using the ratio of six Mcf of natural gas per barrel of crude oil.
Williston Basin Operated Drilling and Completion Update
Brigham's 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 the aforementioned operated rig drilling in Roosevelt County, Montana. Brigham's eighth and ninth operated rigs are currently expected to arrive in May and September 2011, respectively.
Brigham currently has two wells flowing back, two wells fracing and 12 wells waiting on completion.
By mid-April, Brigham expects to add additional fracture stimulation capacity thereby providing access to two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. At that time, Brigham estimates that a minimum of eight wells per month will be fracture stimulated and brought on line to production due to the efficiencies gained by simultaneous stimulations.
Year-End 2010 Proved Reserves
As previously announced, Brigham increased its proved reserves by 141% to 66.8 million barrels of equivalent. Proved reserves were 78% crude oil and were 35% proved developed. During the year, Brigham drilled 44 net wells, 39 of which were located in the Williston Basin. At year-end 2010, approximately 58 net proved developed and 96 net proved undeveloped locations were booked in the Williston Basin, representing approximately 7% and 12% of Brigham's total available de-risked inventory of locations based on four well spacing per producing horizon. Revisions included approximately 0.8 million barrels of oil equivalent in conventional natural gas reserves that were removed from proved reserves as they were unlikely to be drilled within the five year development window required under SEC rules.
Brigham's reserve reconciliation is provided in the table below:
Equivalent Reserves (MMBoe) -------------------- 2010 Beginning Proved Reserves 27.7 Extensions, discoveries & other additions 39.1 Revisions of prior estimates 3.4 Purchases of minerals-in-place 0.2 Sale of minerals-in-place (0.6) Production (3.0) -------------------- 2010 Ending Proved Reserves 66.8 ====================
During 2010, Brigham spent approximately $280.1 million on drilling capital and $112.2 million on land. Proved drilling and land finding and development costs for 2010 based on additions and revisions were $9.23 per barrel of oil equivalent. Proved developed finding costs based on the aforementioned drilling capital and excluding purchases were estimated to be approximately $16.75 per barrel of oil equivalent. Brigham's operated Bakken / Three Forks proved developed finding costs were estimated to be $15.57 per barrel of oil equivalent versus $25.83 per barrel of oil equivalent for non-operated volumes.
Management Comments
Bud Brigham, the Chairman, President and CEO, commented, "We're very excited to announce the acceleration of our operated activity in the Williston Basin to 12 rigs. Our highly skilled and innovative staff has successfully and seamlessly executed our current acceleration and I believe we will continue with the successful and seamless integration of the four additional rigs contemplated with our ramp up to 12 rigs."
Bud Brigham continued, "Our staff is continuing to innovate and has focused attention on the capital cost side of the return equation given the 782 total net de-risked locations we have to drill in our Ross and Rough Rider project areas. In my opinion, the utilization of smart pad drilling will clearly enhance returns via reduced costs but will also make utilization of our service provider crews more efficient. For example, we should, with the implementation of simultaneous fracture stimulations, be able to complete additional wells with the same number of dedicated frac crews. As we've de-risked vast areas of acreage, we are moving into full scale development mode in these areas. Our team is and will continue to work diligently towards beginning to capture and quantify those efficiencies in 2011."
Bud Brigham continued, "We continue to work towards de-risking our Montana acreage with the drilling and completion of additional wells in both Roosevelt and Richland Counties. We believe the Swindle 16-9 #1H had a good outcome given the issues encountered while attempting to run our liner to bottom. We are currently fracing the Johnson 30-19 #1H, recompleting the Voss 20-11H and drilling the Beck 15-10 #1H. Furthermore, industry activity is accelerating in Eastern Montana as operators secure additional acreage and begin to drill wells."
Bud Brigham concluded, "Our numerous opportunities to improve returns by enhancing recoveries and reducing costs will be exciting initiatives in 2011. Our record 2010 reserve additions announced earlier this year already created positive operational momentum for a strong 2011. We look forward to updating our stockholders on our numerous initiatives and catalysts as we move through the remainder of 2011."
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.
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January 27, 2011
Brigham Exploration Company (NASDAQ: BEXP) announced that year-end 2010 proven reserves increased 141% to a record 66.8 million barrels of oil equivalent (Boe). Brigham also announced that fourth quarter 2010 production volumes are estimated to be a record 11,384 barrels of equivalent per day (Boepd), which represents a 125% increase from the fourth quarter 2009 and a 34% sequential increase. Further, Brigham announced the completion of four high rate North Dakota Bakken wells at an average early 24-hour peak flow back rate of 3,078 Boe. To date, Brigham has completed 49 consecutive long lateral, high frac stage Bakken and Three Forks wells in North Dakota at an average early 24-hour peak flow back rate of 2,831 Boe. Finally, Brigham provided an update on its drilling and completion activities in the Williston Basin.
Year-End 2010 Proven Reserves
Brigham's proved reserves totaled a company record 66.8 million Boe at year-end 2010. Brigham grew reserves 141% during the year and replaced 1427% of its estimated 2010 production volumes. Additions including revisions increased reserves 42.5 million Boe and were primarily attributable to the Company's highly successful drilling efforts in the Williston Basin Bakken and Three Forks plays, where Brigham grew reserves 260% to 55.4 million Boe. At year-end 2010, Brigham's high value oil volumes comprised a record 78% of proved reserves as compared to 60% at year-end 2009. Proved developed reserves comprised 35% of year-end 2010 reserves, as compared to 37% at year-end 2009.
For year-end 2010, reserve calculations were based on the average first day of the month price for the prior 12 months. The prices utilized for the year-end 2010 reserve report were $79.43 per barrel of crude oil and $4.38 per Mmbtu of natural gas. Utilizing these prices, Brigham's pre-tax PV10% Value of its proved reserves was $1.1 billion, which represents a 336% increase from year-end 2009. Using strip prices as of December 31, 2010, the pre-tax PV10% Value of Brigham's proved reserves would have been $1.5 billion.
Pre-tax PV10% Value is the estimated present value of the future net revenues from Brigham's proved oil and natural gas reserves before income taxes, discounted using a 10% discount rate. Pre-tax PV10% Value is considered a non-GAAP financial measure under SEC regulations because it does not include the effects of future income taxes, as is required in computing the standardized measure of discounted future net cash flows. Brigham believes that pre-tax PV10% Value is an important measure that can be used to evaluate the relative significance of its oil and natural gas properties and that pre-tax PV10% Value is widely used by security analysts and investors when evaluating oil and natural gas companies. Because many factors that are unique to each individual company impact the amount of future income taxes to be paid, the use of a pre-tax measure provides greater comparability of assets when evaluating companies. Brigham believes that most other companies in the oil and natural gas industry calculate pre-tax PV10% Value on the same basis. Pre-tax PV10% Value is computed on the same basis as the standardized measure of discounted future net cash flows, but without deducting income taxes. The reconciliation of Brigham's Pre-tax PV10% Value to its standardized measure will be included in its Brigham's Form 10-K as the information necessary to compute the standardized measure is not yet available.
Brigham's proved reserves as of December 31, 2010 were prepared by the independent reserve engineering firm Cawley, Gillespie & Associates, Inc. in accordance with SEC guidelines.
Estimated Fourth Quarter 2010 Production
Brigham's estimated average daily production volumes for the fourth quarter 2010 were a quarterly record 11,384 Boepd, up 125% from the fourth quarter 2009 and up 34% from the third quarter 2010. Brigham's previous record quarterly production volumes were 8,509 Boepd in the third quarter 2010.
Benefiting from both its operated and non-operated drilling activity in the Williston Basin, Brigham's high value crude oil production volumes for the fourth quarter 2010 averaged 9,129 barrels of crude oil per day, which represents a 218% increase from that in the fourth quarter 2009 and a 44% sequential increase from that in the third quarter 2010. Brigham's high value crude oil production volumes represented 80% of its total production volumes in the fourth quarter 2010, as compared to 57% in the fourth quarter 2009 and 75% in the third quarter 2010.
Brigham's production volumes in the Williston Basin for the fourth quarter 2010 were 9,359 Boepd, which represents a 272% increase from that in the fourth quarter 2009 and a 45% sequential increase from that in the third quarter 2010.
Production volumes include approximately 135 barrels of crude oil per day of inventory build during the fourth quarter.
Williston Basin Operated Well Result Update
The following table updates Brigham's long lateral, high frac stage well results:
Early 24-Hour Peak Flow Back Rate -------------------------- Barrels of Oil County, Working Crude Natural Equivalent Well State Objective Stages Interest Oil (1) Gas (2) (3) ----------- ----------- --------- ------ -------- ------- ------- ---------- Lloyd 34-3 McKenzie, #1H (4) ND Bakken 31 29% 3,240 4.74 4,030 Bratcher McKenzie, 10-3 #1H ND Bakken 30 91% 3,206 2.76 3,667 M. Macklin Williams, 15-22 #1H ND Bakken 38 89% 2,312 1.34 2,534 M. Olson Williams, 20-29 #1H ND Bakken 38 91% 1,936 0.86 2,080 Average 3,078
(1) Barrels of crude oil.
(2) Millions of cubic feet of natural gas (MMcf).
(3) Converted to barrels of oil equivalent using the ratio of six Mcf of natural gas per barrel of crude oil.
(4) Represents joint venture well completed with U.S Energy Corp. (NASDAQ: USEG)
Williston Basin Operated Drilling and Completion Update
Brigham's accelerated development of its acreage in North Dakota and Montana is proceeding with five operated rigs drilling in Rough Rider and two operated rigs drilling in Ross. Brigham's eighth operated rig is currently expected to arrive in May 2011.
Brigham currently has one well flowing back, two wells fracing and ten wells waiting on completion. Brigham is currently fracing the Swindle 16-9 #1H, which is located in Roosevelt County, Montana, and will frac the Johnson 30-19 #1H, which is located in Richland County, Montana, in mid-February.
By mid-April, Brigham expects to add additional fracture stimulation capacity thereby providing access to two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. 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, "In our view, the Williston Basin Bakken and Three Forks plays are the highest value resource plays in North America, and our 2010 proved reserve growth clearly demonstrates that Brigham Exploration is a technological leader in these plays. Our record 2010 reserves and production growth reflect the substantial net asset value we've created for investors in 2010. This was achieved at very attractive drilling and leasehold acquisition finding and development costs, which excludes the cost of our field level infrastructure investment, of roughly $10 per proved barrel of oil equivalent. Importantly, given that we're very early in the development of this world class resource, we estimate that we've drilled only 7% of our core de-risked locations across our approximate 205,600 net acres assuming four well spacing per producing horizon. In light of our remarkable transformational year, I want to personally commend our employees for these terrific results, the credit goes to them for their efforts to continue to innovate and be the leader in the Williston Basin."
Bud Brigham continued, "Looking ahead, given the significant drilling inventory remaining on our core acreage, our ongoing drilling to further delineate the economics of our Rough Rider Three Forks and Montana Bakken locations, the potential to increase the number of density wells per spacing unit, and the success we've achieved acquiring additional acreage, I believe that 2010 is just the first of many years of significant, low cost reserve additions for our shareholders. As other companies are striving to become liquids rich, we already have the oil manufacturing machine up and running with 80% of our production volumes driven by high value crude oil. The oil manufacturing machine is expandable as well, as we continue to engage with service providers to ramp up our rig count beyond the eight rigs we will have running by May."
Bud Brigham concluded, "In addition to our efforts to increase our drilling inventory and accelerate the development of the associated net asset value, we have internally developed a number of initiatives that we will test during 2011 to further enhance estimated ultimate recoveries. Furthermore, we are at the very early stages of investigating opportunities to reduce costs through drilling and completion efficiencies. Overall, 2011 looks to be a very exciting year and one in which we anticipate making substantial progress in our goal of 'No Oil Left Behind™.'"
Disclosure Statements
The production and financial information in the release is unaudited and subject to revision. Audited and final results will be provided in our Annual Report on Form 10-K for the year ended December 31, 2010 currently planned to be filed with the Securities and Exchange Commission by the end of February or early March 2011.
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
==///////////==
Operational Update - November 1, 2010
Brigham Exploration Company (NASDAQ: BEXP) announced the completion of three high rate Bakken wells, including the Clifford Bakke 26-35 #1H and the Abelmann 23-14 #1H at early 24-hour peak flow back rates of approximately 5,061 and 4,169 barrels of oil equivalent, respectively. In total, Brigham has completed 39 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 2,777 barrels of oil equivalent. Brigham also provided an update on its drilling and completion activities in the Williston Basin.
Ross Project Area Update
In Mountrail County, North Dakota, Brigham announced the completion of the Clifford Bakke 26-35 #1H, which was completed with 38 fracture stimulation stages, at an early 24-hour peak flow back rate of approximately 5,061 barrels of oil equivalent (4,438 barrels of oil and 3.73 MMcf). The Clifford Bakke 26-35 #1H is located two miles to the east of the Anderson 28-33 #1H, which was completed in August 2009 with 24 fracture stimulation stages at an early 24-hour peak flow back rate of 2,154 barrels of oil equivalent. Based on publicly available information, the Clifford Bakke 26-35 #1H appears to represent the second highest initial production rate well in the Williston Basin and Brigham now has the first, second, third and fifth highest initial production rate wells in the basin. To date, Brigham has completed eight Ross project area long lateral Bakken wells at an average early 24-hour peak flow back rate of approximately 3,988 barrels of oil equivalent. Brigham maintains an approximate 43% working interest in the Clifford Bakke 26-35#1H.
Rough Rider Project Area Update
Record Rough Rider Bakken Completion -- In McKenzie County, North Dakota, Brigham announced the completion of the Abelmann 23-14 #1H at an early 24-hour peak flow back rate of 4,169 barrels of oil equivalent (3,745 barrels of oil and 2.55 MMcf). The Abelmann 23-14 #1H was completed with 33 frac stages and, based on publicly available information, appears to represent a record initial production rate well west of the Nesson Anticline. Brigham maintains an approximate 53% working interest in the Abelmann 23-14 #1H.
Rough Rider Increased Density Pilot Project -- In Williams County, North Dakota, Brigham is in the process of flowing back the Brad Olson 9-16 #2H, which is being completed with 32 fracture stimulation stages and represents Brigham's 40th long lateral high frac stage completion. Current flow back results indicate the early 24-hour peak flow back rate will be within the range of early 24-hour peak flow back rates for other Brigham operated Rough Rider wells. Brigham hopes to be able to provide an early 24-hour peak flow back rate on its 3rd quarter 2010 conference call tomorrow morning. Brigham maintains an approximate 56% working interest in the Brad Olson 9-16 #2H, with U.S. Energy Corp. (NASDAQ: USEG) as a working interest participant.
The Brad Olson 9-16 #2H represents Brigham's first infill test west of the Nesson Anticline. By monitoring frac wing performance of the well with a deployed micro-seismic array and monitoring continued well performance, Brigham hopes to delineate the potential to drill incremental infill wells beyond the currently envisioned three wells per spacing unit. If results indicate that four to six wells may be required to effectively drain spacing units, Brigham's de-risked Rough Rider drilling inventory could increase by approximately 120 to 360 net locations, which would represent a significant net asset value enhancement event. Subject to results, Brigham plans to commence additional increased density pilots in Rough Rider and Ross in the first half 2011, including four well density units.
Additional Rough Rider Completion -- Also in Williams County, North Dakota, Brigham announced the completion of the Smith Farm 23-14 #1H, which was completed with 32 fracture stimulation stages at an early 24-hour peak flow back rate of 2,417 barrels of oil equivalent. Brigham maintains approximate 82% working interest in the Smith Farm 23-14 #1H.
Williston Basin Drilling and Completion Update
Brigham's accelerated development of its acreage in North Dakota and Montana is proceeding with three operated rigs drilling in Rough Rider, two operated rigs drilling in Ross and one operated rig drilling in Roosevelt County, Montana. A seventh operated rig is expected to arrive in mid-November, approximately two months ahead of schedule. Brigham's eighth operated rig is currently expected to arrive in May 2011.
Brigham currently has one well flowing back, two wells fracing and nine wells waiting on completion. In the first quarter 2011, Brigham expects to add additional fracture stimulation capacity thereby providing access to two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. 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've now drilled 39 consecutive high frac stage long lateral completions in North Dakota averaging 2,777 barrels of oil equivalent over an early 24-hour peak flow back period. The outperformance of our wells once again resulted in our exceeding the high end of our production volume guidance, and we also achieved record quarterly production volumes of 8,509 barrels of oil equivalent per day during the third quarter. Furthermore, during the third quarter, our high value oil production volumes continued to grow and represented approximately 75% of our total production volumes and 87% of our pre-hedge revenues, which drove our revenue and cash flow to record levels during the quarter. We're even more excited about the potential for strong fourth quarter production volume growth given the three wells we recently brought on line and our plans to complete approximately six wells per month in the Williston Basin during the quarter. We currently anticipate achieving between 20% and 27% sequential production volume growth during the fourth quarter and therefore expect our volumes to average between 10,200 to 10,800 barrels of oil equivalent per day."
Bud Brigham continued, "We've moved an operated rig into Montana and are currently drilling the Swindle 9-16 #1H in Roosevelt County about seven miles east of our Rogney well. We will subsequently move the rig to Richland County, Montana to drill the Johnson 30-19 #1H, which is approximately seven to eight miles northwest of our Sedlacek Trust 33-4 #1H. We're excited about the opportunity to complete two additional Montana wells early in 2011 in an effort to further de-risk portions of our approximately 105,400 net acres in the area."
Bud Brigham concluded, "Our Brad Olson 9-16 #2H and #3H, which will be completed later this year, could provide yet another potential catalyst for net asset value growth. As we've increased the number of frac stages while pumping the same amount of ceramic proppant, we potentially have decreased the length of our frac wings and increased our drainage efficiency along the length of the wellbore. By analyzing the results of our deployed micro-seismic array and ongoing monitoring of well performance, we hope to determine whether we may have the opportunity to drill more than our currently planned three wells per spacing unit. If we can drill four to six wells per spacing unit, in our Rough Rider area alone our de-risked development drilling inventory could increase by approximately 120 to 360 net wells, which would represent a significant net asset value enhancement."
Conference Call Information
Our management will host a conference call to discuss operational and financial results for the third quarter 2010 with investors, analysts and other interested parties on Tuesday, November 2, at 11:00 a.m. Eastern Time. To participate in the call, participants within the U.S. please dial 888-713-4218 and participants outside the U.S. please dial 617-213-4870. The participant passcode for the call is 21582582. Participants may pre-register for the call at https://cossprereg.btci.com/prereg/key.process?key=PVNELWLGV. Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference. A telephone recording of the conference call will be available approximately two hours after the call is completed through 12:00 p.m. Eastern Time on Tuesday, November 9, 2010. To access the recording, domestic callers dial 888-286-8010 and international callers dial 617-801-6888. The passcode for the conference call playback is 42559492. In addition, a live and archived web cast of the conference call will be available over the Internet at either www.bexp3d.com or www.streetevents.com.
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.
Contact:
Rob Roosa
Finance Manager
(512) 427-3300
=////////////=
August 3, 2010, 4:45 pm EDT
Since late April 2010, Brigham Exploration Company (NASDAQ: BEXP) has expanded its acreage position in the Williston Basin by approximately 52,800 net acres to an estimated 358,200 net acres, which represents a 17% increase in its total Williston Basin acreage. Importantly, Brigham has expanded its core acreage position by an estimated 34,000 net acres, primarily in and around its Rough Rider project area, to a total of approximately 198,400 net acres. Brigham also announced the completion of the Rogney 17-8 #1H, its first Bakken well in its Eastern Montana project area in Roosevelt County, Montana, at an early 24-hour peak flow back rate of 909 barrels of oil equivalent. Finally, Brigham announced the completion of the Michael Owan 26-35 #1H and the Sedlacek Trust 33-4 #1 at early 24-hour peak flow back rates of 2,931 and 2,695 barrels of oil equivalent, respectively.
Growth in Williston Basin Acreage
In addition to its ongoing organic leasing efforts, Brigham completed four separate acreage acquisition transactions, expanding its Williston Basin acreage position by approximately 52,800 net acres since late April to an estimated 358,200 net acres. Approximately 23,800 net acres were added to its Rough Rider project area in Williams and McKenzie County, North Dakota. In addition, approximately 9,900 net acres were added in far eastern Richland County, Montana, very proximate to Brigham's Sedlacek Trust well, which had an early 24-hour peak rate of 2,695 barrels of oil equivalent. As a result, Brigham's core acreage position west of the Nesson Anticline in Rough Rider and in far Eastern Montana has grown by approximately 27% to an estimated 156,700 net acres. An additional 300 net acres were added east of the Nesson Anticline in the Ross project area in Mountrail County, North Dakota. Together, this represents an increase of 34,000 net acres in its core acreage in the Williston Basin to approximately 198,400 total net core acres. As a result of these acreage additions, Brigham has increased its core acreage drilling locations by an estimated 81 net locations to approximately 574 total net locations.
Separate from the aforementioned core acreage additions in far eastern Richland County, Montana, Brigham added approximately 17,300 additional acres in its Eastern Montana project area further west from the Sedlacek Trust well in Richland County. The remaining 1,500 net acres acquired in Eastern Montana are located in Roosevelt County.
Initial Brigham Operated and Non-Operated Montana Bakken Discoveries
Brigham announced the completion of its operated Rogney 17-8 #1H in its Eastern Montana project area in Roosevelt County at an early 24-hour peak rate of approximately 909 barrels of oil equivalent. Given that this was Brigham's initial test in the area, the initial nine frac stages, or approximately 30% of the horizontal wellbore, were stimulated at lower frac pump rates. However, as a consequence the well produced at low initial flow rates. Brigham subsequently treated the remaining 21 frac intervals at higher frac pump rates and, when commingled with the initial nine intervals, the well produced 909 barrels of oil equivalent in an early 24 hour period. Currently the Rogney is flowing at a rate of approximately 400 barrels of oil equivalent per day.
Also in Montana and approximately 17 miles southeast of the Rogney, Brigham participated with a small working interest in the Zenergy Luke Sweetman, which was completed with 23 frac stages. The Luke Sweetman commenced production in late April at an early 24-hour peak rate of approximately 1,201 barrels of oil equivalent per day, after 100 days had produced roughly 30,000 barrels of oil and was recently producing approximately 320 barrels of oil equivalent per day. Brigham will continue to monitor the performance of the Rogney and other surrounding wells, and plans on spudding its next Montana operated well, the Gobbs 17-8, approximately five miles east of the Rogney in November.
Update on Accelerating North Dakota Bakken and Three Forks Operational Activity
Brigham announced the completion of its operated Michael Owan and Sedlacek Trust wells at early 24 hour peak flow back rates of 2,931 (2,640 Bopd and 1.75 MMcf/d) and 2,695 (2,413 Bopd and 1.69 MMcf/d) barrels of oil equivalent, respectively. Both wells are located in Brigham's Rough Rider project area. Notably, the Sedlacek Trust represents the southwestern most well to date of Brigham's acreage in its Rough Rider project area. The Michael Owan and Sedlacek Trust were treated with 33 and 30 frac stages, respectively. Brigham maintains an approximate 87% interest in the Michael Owan and an approximate 48% working interest in the Sedlacek Trust. The Sedlacek Trust was completed with U.S. Energy Corp. (NASDAQ: USEG) as well #10 under the terms of the 15 well Drilling Participation Agreement entered into last year. Brigham's interest in the wells drilled with U.S. Energy Corp. will increase after payout.
Brigham's accelerated development of its core operated acreage in its Rough Rider and Ross project areas is proceeding with five operated rigs drilling, four of which are located in Rough Rider with an additional rig located in Ross. The next operated rig is expected to arrive October 1st and is expected to drill wells in the Ross project area. Additional operated rigs are expected to arrive in January and May 2011 after which Brigham will have eight operated rigs running in the Williston Basin. In terms of operated well completions, one well is currently flowing back after frac, one well is fracing and nine wells are waiting on completion.
Access to an incremental 50% of a frac crew is expected this month and at that time the pace of Brigham operated completions is expected to accelerate. In December 2010 or January 2011, Brigham is expected to gain access to an additional 50% of a frac crew and at that time Brigham will have two fully dedicated crews fracing Brigham operated wells at all times.
Brigham is also actively constructing infrastructure in both the Rough Rider and Ross project areas. In Rough Rider, crude oil, water disposal and fresh water pipelines are being laid. It is expected that Brigham will lay approximately 70 miles of each of these lines. All lines are anticipated to be operational by the second quarter 2011. Additionally, a pipe yard is currently under construction and a water disposal well will be drilled in the near future, both near Williston, North Dakota. In Ross, water disposal lines are being laid, a water disposal well has been drilled and the disposal facility is being constructed. It's expected that the water disposal system will be operational in the next 60 days.
Management Comments
Bud Brigham, the Chairman, President and CEO, commented, "Our Land Department exceeded all expectations by delivering approximately 52,800 net Williston Basin acres to our stockholders, an estimated 34,000 of which are in our core areas, since our last acreage update in April. This acreage was delivered at an average cost of approximately $1,000 per acre, which represents a substantial discount to the per acre cost of a recent industry merger transaction in the Williston Basin and represents a significant net asset value creation event. In total, we estimate that 81 net drilling locations were added to our de-risked core drilling inventory. Our successful long lateral high frac stage drilling formula has delivered 28 consecutive high production rate North Dakota Bakken and Three Forks wells at an average early 24-hour peak rate of 2,659 barrels of oil equivalent. We believe these results have made us an operator of choice in the Rough Rider project area and have assisted in our ability to close meaningful acreage transactions over a two month period."
Bud Brigham continued, "Inclusive of our Rogney test, we now have three apparent Bakken discoveries proximal to our largest acreage block in our Eastern Montana project area. Apparently EOG has completed and is producing the Carat well immediately offsetting our acreage to the north. In addition, the Zenergy Luke Sweetman well, in which we have a small working interest, has now produced for approximately 100 days and is providing encouraging early performance to the southeast. Furthermore, well spacing activity has increased significantly in Eastern Montana with 78 units applied for by other operators at the June and August spacing hearings. The vast majority of these units are just east and north of our acreage block. We've learned a great deal from the Rogney that we will benefit from in our subsequent drilling. The initial nine frac stages were pumped at lower frac rates, reducing the productivity of that portion of the stimulation. The remaining 21 frac stages produced much better results relative to the initial nine stages. We'll of course continue to evaluate the core results of the Rogney and monitor the well's performance, and very much look forward to commencing our second operated test during the fourth quarter."
Bud Brigham continued, "Exciting activity is underway in Rough Rider with our first Three Forks well and first Bakken infill well drilling ahead. Our Three Forks well is being drilled in the same unit as our State 36-1 Bakken well, which commenced production in January 2010 at an initial rate of approximately 3,807 barrels of oil equivalent per day. Success with the State 36-1 Three Forks well would complement third party operated Three Forks discoveries proximal to Rough Rider and potentially further de-risk approximately 344 net Three Forks locations in Rough Rider. Additionally, we are currently drilling our first Bakken infill well in our Brad Olson 9-16 spacing unit and will deploy a micro seismic array to monitor the propagation of our frac wings. Monitoring frac wing performance could enable us to better understand the ultimate number of locations that are available to fully develop each spacing unit. As we have kept the amount of proppant placed in the formation for each well constant while increasing the number of frac stages, it's likely we have more effectively stimulated the near well bore area, while reducing the length of our frac wings. If we are more effectively stimulating the near well bore area, we may have the opportunity to drill more than the currently envisioned three wells per spacing unit."
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.
Contact:
Rob Roosa
Finance Manager
(512) 427-3300
=////////////=
Brigham Exploration Company Investor Presentation April 2008
http://www.bexp3d.com/IR_pres.pdf
Brigham Exploration Company Q4 2007 Earnings Call Transcript, 03 04 08
http://tinyurl.com/2zgzcl
DUE DILIGENCE - EXTERNAL
Williston Basin [North Dakota] sets pace for sales of oil, gas leases
http://209.157.64.201/focus/f-news/1571175/posts
"The U.S. Is Poised to Hit a New Oil Gusher" 03 17 08
By Jim Ostroff, Associate Editor, The Kiplinger Letter
http://tinyurl.com/yqbgcd
"North Dakota -- the next Saudi Arabia"
http://tinyurl.com/3ebkvh
Williston Basin - From Wikipedia
http://en.wikipedia.org/wiki/Williston_Basin
Bakken Formation - From Wikipedia
http://en.wikipedia.org/wiki/Bakken_Formation
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