Brigham Exploration First Quarter 2000 Operational Update
AUSTIN, Texas--(BUSINESS WIRE)--May 11, 2000--Brigham
Exploration Company (Nasdaq:BEXP) today provided its quarterly
overview of operational activity for the three-month period ending
March 31, 2000, which was highlighted by a significant Springer
natural gas discovery in its Anadarko Basin province and a successful
development well at Brigham's Home Run Field in its Texas Gulf Coast
province.
First Quarter 2000 Operational Results
Brigham spud a total of eight wells during the first quarter in
which it retained an aggregate average working interest of 34%. Seven
of these wells have been completed and one has been plugged. Brigham's
first quarter drilling was concentrated in its 3-D seismic projects in
the Anadarko Basin and Gulf Coast provinces and targeted primarily
natural gas exploration and development objectives.
On a net basis, approximately 70% of these wells were located in
the Anadarko Basin and 30% were in the Texas Gulf Coast. Brigham
operated 92% of the net wells it participated in during the first
quarter.
Since the end of the first quarter, Brigham has spud four
additional wells in which it has retained an aggregate average
working interest of 59%. One of these wells is currently being
completed, one well has been plugged and two wells are currently
drilling.
Brigham estimates its average net daily production volumes during
the first quarter 2000 were approximately 17 million cubic feet of
equivalent natural gas (MMcfe), 61% of which was natural gas.
Excluding producing properties sold by the Company in mid-1999,
Brigham's estimated net production volumes for the first quarter of
2000 increased 20% from the adjusted net volumes produced in the first
quarter of 1999 and 4% over actual fourth quarter 1999 volumes.
Net production growth in the first quarter 2000 was somewhat lower
than management expected primarily due to delays in first production
and lower stabilized rates from the Palmer State No. 2 confirmation
well in the Home Run Field in Brooks County, Texas, and declines in
production volumes from a recently completed Frio well in Brazoria
County, Texas. As a result, Brigham estimates that its average net
daily production rate at the end of the first quarter 2000 was
approximately 18 MMcfe per day.
Anadarko Basin Activity
As previously announced, Brigham had a significant Springer
discovery in its Anadarko Basin core province during the first
quarter. This Springer discovery began producing to sales on May 2,
and is currently producing at a pipeline curtailed rate of
approximately 3 million cubic feet (MMcf) of natural gas and 310
barrels of oil per day.
As pipeline capacity is increased over the next two to four weeks,
Brigham intends to produce the well at an unstimulated rate of
approximately 5 MMcf of natural gas and 400 barrels of oil per day, or
4.1 MMcfe per day net to the Company's approximate 56% revenue
interest. Also in the Anadarko Basin, Brigham is completing another
Morrow discovery in its Arnett Project, the Anne 5 No. 1, where the
Company retains a 45% working interest. Drilled to a total depth of
11,000 feet, this Morrow discovery is expected to be tested and
completed within the next 30 days.
Brigham plans to spud four wells in its Anadarko Basin projects
during the second quarter, including a deep Hunton test that offsets a
currently producing well that has produced over 15 Bcfe to date.
Brigham currently retains a 69% working interest in this proved
undeveloped location, which would confirm a large 3-D imaged fault
block with over 50 Bcfe of gross unrisked reserve potential.
Gulf Coast Activity
In its Texas Gulf Coast province, completion operations have
recently begun on the Brigham-operated Palmer State No. 3 development
well, which is an offset to the Company's successful Home Run Field
confirmation well, the Palmer State No. 2. The Palmer State No. 3
encountered the prospective Vicksburg objectives approximately 130
structural feet high to the Palmer State No. 2.
Recently acquired wireline logs and rotary sidewall cores indicate
that the Palmer State No. 3 encountered 113 feet of net pay with
greater than 18% porosity in the Lower Vicksburg. These results
compare favorably to the currently producing Palmer State No. 2 well,
which encountered 44 feet of net pay with greater than 18% porosity in
the Lower Vicksburg.
The Palmer State No. 2 is currently producing at a stabilized rate
of approximately 9 MMcfe, or 2.6 MMcfe net to Brigham's revenue
interest, at a flowing tubing pressure of 3,900 pounds per square
inch.
Brigham expects to begin production testing of the Palmer State
No. 3 within the next 10 days, followed by fracture stimulation
operations on productive intervals in the well. Brigham anticipates
that the next development well in the Home Run Field will spud by
July.
Brigham plans to spud six wells in its Texas Gulf Coast projects
during the second quarter, including the Dinn No. 2 in its Caliente
Project in Duval County, Texas, where the Company retains a 50%
working interest. Based on dip-meter and 3-D seismic data analysis,
this well is an updip proved undeveloped offset to the Brigham's 1998
Dinn No. 1 Wilcox discovery, and will test a structure with
approximately 50 Bcfe of gross unrisked reserve potential.
Management Comment
Bud Brigham, the Company's chairman, CEO and president, stated,
"Soon after the close of our financing transactions in late February,
we began in earnest our 2000 drilling program. Results to date are
encouraging, highlighted by our recently completed Springer discovery
in the Anadarko Basin and our currently completing Palmer State No. 3
development well in the Home Run Field.
"While we experienced disappointing results in two of our bright
spot tests during the quarter, these are trends that have experienced
significant recent 3-D seismic-driven drilling successes. We therefore
remain optimistic about our deep inventory of amplitude-related
prospects in the Texas Gulf Coast."
Mr. Brigham continued, "We are early in our 2000 drilling program,
and our recent successes are just beginning to impact our production
volumes. The currently producing Palmer State No. 2 will fully impact
our second quarter production, and our Springer discovery and Palmer
State No. 3 well will fully impact our third quarter volumes.
"In addition, we plan to spud 10 wells in our Anadarko Basin and
Gulf Coast projects during the second quarter. Based on our recent and
current well completions, combined with our accelerating 2000 drilling
program, we expect to deliver sequential growth in quarterly
production volumes during the remainder of 2000."
About Brigham Exploration
Brigham Exploration Company (www.bexp3d.com) is an independent
exploration and production company that applies 3-D seismic imaging
and other advanced technologies to systematically explore and develop
onshore domestic natural gas and oil provinces.
Forward-Looking Statements Disclosure
Except for the historical information contained herein, the matters
discussed in this news release are forward looking statements that are
based upon current expectations. Important factors that could cause
actual results to differ materially from those in the forward looking
statements include risks inherent in exploratory drilling activities,
the timing and extent of changes in commodity prices, unforeseen
engineering and mechanical or technological difficulties in drilling
wells, availability of drilling rigs, land issues, federal and state
regulatory developments and other risks more fully described in the
company's filings with the Securities and Exchange Commission.
BRIGHAM EXPLORATION COMPANY
DRILLING ACTIVITY BY REGION
Gross Net WI%
----- --- ---
Anadarko Basin Wells Completed 3 1.9 63%
P&A Wells 0 0.0 0%
Wells Drilling 0 0.0 0%
----- --- ---
Total Wells Spud 3 1.9 63%
----- --- ---
Completion Rate 100% 100%
Gulf Coast Wells Completed(a) 4 0.4 10%
P&A Wells 1 0.5 46%
Wells Drilling 0 0.0 0%
----- --- ---
Total Wells Spud 5 0.9 17%
----- --- ---
Completion Rate 80% 46%
West Texas Wells Completed 0 0.0 0%
P&A Wells 0 0.0 0%
Wells Drilling 0 0.0 0%
----- --- ---
Total Wells Spud 0 0.0 0%
----- --- ---
Completion Rate 0% 0%
Overall Wells Completed 7 2.3 33%
P&A Wells 1 0.5 46%
Wells Drilling 0 0.0 0%
----- --- ---
Total Wells Spud 8 2.7 34%
----- --- ---
Completion Rate 88% 83%
*T
(a) Includes three wells drilled and completed in the Esperson Dome
Project in which Brigham retains an approximate 1.5% net profit
interest before project payout and a variable 12%-20% back-in
working interest after project payout depending upon attainment
of certain investment return thresholds.
CONTACT:
Brigham Exploration Company, Austin
Christopher A. Phelps, 512/427-3300
investor@bexp3d.com |
