Exhibit 99.1
Brigham Exploration Announces Discoveries and Provides Operational Update
AUSTIN, Texas, Dec. 16 /PRNewswire-FirstCall/ -- Brigham Exploration
Company (Nasdaq: BEXP) provided an update of its accelerated operational
activity.
ONSHORE GULF COAST VICKSBURG
Palmer #8 Home Run Field Completion -- Brigham retained a 100% working
interest in the Brigham operated Palmer #8 well, its eleventh completion in
its Home Run Field. Brigham's working interest in the Palmer #8 will revert
to 34% after the well pays out 350% of its drilling and completion costs. The
Palmer #8 encountered apparent net pay in three separate Vicksburg intervals,
which were recently commingled and producing to sales at a rate of
approximately 6.5 Mmcf of natural gas and 568 barrels of oil (9.9 Mmcfe) per
day, or 7.9 Mmcfed net to Brigham's 80% revenue interest. Brigham elected to
production test each of the three individual zones separately subsequent to
fracture stimulation over a more extended period of time than most of its
recent Vicksburg completions. Although this process delayed the start date
for commingled production, Brigham believes that extending the production
tests of the individual zones prior to commingling the production streams
could potentially enhance the ultimate recoveries of the reservoirs.
Floyd Fault Block Field -- The Sullivan #8, which was the discovery well
for Brigham's Floyd Fault Block Field, has stopped producing due to an
apparent blockage above the producing formation. The Sullivan #8 produced
approximately 2.9 Bcfe from February to October 2003. Prior to the apparent
blockage, the Sullivan #8 was producing approximately 7.7 Mcf of natural gas
and 400 barrels of condensate per day, or 2.5 Mmcfed net to Brigham's 25%
revenue interest. Brigham's major oil company participant is the operator of
the well, and is currently attempting remedial operations. It is not known at
this time whether the well can be returned to production, but Brigham expects
the well to either be sidetracked or redrilled if remedial operations are
unsuccessful.
The Sullivan #10, Brigham's third well in the Floyd Fault Block Field, is
currently drilling in the targeted Lower Vicksburg sands with drilling shows
at a depth of approximately 13,100 feet. The anticipated total depth for the
Sullivan #10 is approximately 14,000 feet, with results expected by early
January 2004. Brigham owns a 34% working interest in the Sullivan #10, which
offsets the previously drilled Sullivan #8 and Sullivan #9 wells.
Sullivan F #1 Floyd South Joint Venture Test -- As part of the previously
announced Vicksburg joint ventures, Brigham is currently drilling the Sullivan
F #1 to test the Floyd South fault block. Intermediate casing has been set
and the well is currently drilling at a depth of approximately 12,200 feet
with an anticipated total depth of approximately 14,000 feet. Brigham is
operating the Sullivan F #1 and retains a working interest of 100% before
casing and 50% after casing point. Brigham will retain a 50% working interest
before and after casing point in any wells subsequently drilled in the Floyd
South fault block. Results for the well are expected by late December or
early January. Brigham expects to commence drilling operations to test two
additional high potential fault blocks within its Diablo East and Diablo South
joint ventures during the first quarter of 2004.
Bud Brigham, the Company's Chairman, CEO and President, stated, "We
believe that the loss of production at the Sullivan #8 will be temporary. It
does negatively impact our fourth quarter production volumes, however, we're
confident it should have no impact on the reserves we will ultimately recover.
At the time of the apparent blockage the well was producing at very strong
rates and pressures, thus it seems clear that it's a mechanical problem.
We're very pleased with the initial production rates for our Palmer #8 Home
Run Field development well, although our decision to try a more extended
completion procedure to hopefully increase the ultimate reserve recoveries
reduced the amount of production volumes relative to those previously
anticipated during the fourth quarter. Given the number of wells we expect to
drill and complete in this and the adjacent fault blocks, we will continue to
look for ways to enhance field performance."
ONSHORE GULF COAST FRIO
Completion of New Frio Discoveries -- In Matagorda County, Texas,
completion operations are continuing on two previously announced apparent Frio
discoveries. Brigham attempted to complete its 75% working interest discovery
in deeper potential pay intervals unsuccessfully, and is now attempting a
completion in the primary pay intervals. Brigham's 50% working interest well,
the Harrison #1, tested the Company's Corner Pocket Prospect. Thus far,
production tests of the potential pay intervals in the Harrison #1 have been
disappointing, and it appears likely that the well will either be plugged or
will produce at marginal production rates.
High Working Interest Frio Test -- Brigham is currently drilling the
Randall #1, another Frio test in Brazoria County. The Randall #1, which is
currently drilling at a depth of approximately 12,200 feet, will test several
Frio sand objectives at depths between 13,000 and 14,000 feet. Brigham
retains a 94% working interest in this reentry and sidetrack of another
operator's previously drilled well. Results for the Randall #1 are expected
by late December. Brigham expects to commence three additional Frio tests in
the next 30 days.
ANADARKO BASIN HUNTON
Hunton Test -- Brigham is currently drilling its Eula Clay #1 at a depth
of approximately 11,000 feet. The Brigham operated Eula Clay #1 is targeting
the Hunton at a depth of approximately 15,200 feet, and Brigham's working
interest in the well is 60% before and 70% after casing point. Results for
the Eula Clay #1 are expected by early January. Brigham plans a continuous
deep Hunton and Arbuckle development and exploration drilling program during
2004.
ANADARKO BASIN SPRINGER
Tenth Springer Bar Field Discovery -- Brigham participated in the
successful completion of its tenth Springer Bar Field well with a 16% working
interest. The newest discovery recently production tested at a rate of
approximately 7.2 Mmcf of natural gas per day with a flowing tubing pressure
of approximately 5,900 pounds. Production to sales should begin by early
January. In addition, Brigham currently has one other well completing in the
field and two others drilling.
Grady County Bromide Completion -- As previously announced, Brigham
participated in a Bromide discovery, the Palmer #1, with a 29% working
interest. The Palmer #1 was recently fracture stimulated and subsequently was
producing at a rate of approximately 130 barrels of oil and 350 Mcf of natural
gas (1.1 Mmcfe) per day. Brigham is participating in the drilling of the
Cooper #1, which is another Bromide test, with a 32% working interest. The
Cooper #1 is drilling at a depth of approximately 11,800 feet, with a targeted
total depth of approximately 16,500 feet.
WEST TEXAS
Eastern Shelf Canyon Reef Discovery -- Brigham retains a 40% working
interest in the apparently successful reentry of an existing well that was
previously drilled by another operator to a depth of approximately 5600 feet.
The Mexican 2 Step #2 has approximately 44 feet of apparent net pay in the
Canyon reef as well as 22 feet of potential pay in a deeper interval. The
Mexican 2 Step #2 offsets the Mexican 2 Step #1, which Brigham also
participated in earlier in 2003. The Mexican 2 Step #1 produced at an initial
rate of approximately 150 barrels of oil per day. Brigham plans to drill
another offset in early 2004.
Brigham's current total drilling activity includes seven wells currently
drilling, with eleven additional wells expected to commence within the next
30 days.
Bud Brigham stated, "Due primarily to the unanticipated loss of production
during the fourth quarter from our Sullivan #8 Floyd Fault Block Field well,
but also our decision to extend the completion operations for our Palmer #8
discovery, we now believe that our fourth quarter production volumes will be
roughly flat with our third quarter volumes. However, the successful
completions at the Palmer #8 Vicksburg well, our tenth Springer Bar
completion, our Palmer #1 Bromide completion, our West Texas reef completion,
as well as our Frio completions, assuming they are successful, should fully
impact our first quarter 2004. In addition, by early January we should have
results from much of our accelerated drilling program currently underway, and
we expect to commence eleven additional wells over the next 30 days."
About Brigham Exploration
Brigham Exploration Company is a leading independent exploration and
production company that applies 3-D seismic imaging and other advanced
technologies to systematically explore and develop onshore domestic natural
gas and oil provinces. For more information about Brigham Exploration, please
visit our website at 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 Private Securities Litigation Reform Act of 1995 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. 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: John Turner, Manager of Finance & Investor Relations
(512) 427-3300
SOURCE Brigham Exploration Company
-0- 12/16/2003
/CONTACT: John Turner, Manager of Finance & Investor Relations of Brigham
Exploration Company, +1-512-427-3300/
/Web site: http://www.bexp3d.com /
(BEXP)
CO: Brigham Exploration Company
ST: Texas
IN: OIL
SU: