Exhibit 99.1
Brigham Exploration Announces FY 2004 Capital Spending Plan
AUSTIN, Texas, Feb. 19 /PRNewswire-FirstCall/ -- Brigham Exploration
Company (Nasdaq: BEXP) announced today the approval by its board of directors
of a capital expenditure plan for 2004. Brigham plans to spend approximately
$79.4 million on capital expenditures, up approximately 72% from its estimated
2003 capital expenditures.
FY 2004 CAPITAL SPENDING PLAN
Brigham currently plans to spud 59 new wells in 2004 with an average
working interest of 42%. Brigham's 2004 total capital budget represents a
102% increase over Brigham's capital budget at the start of 2003. Brigham
accelerated its capital expenditures late in 2003, and estimates its 2003
capital expenditures at approximately $47 million. Capitalizing on its prior
exploration success, Brigham will allocate approximately 64% of its budgeted
drilling capital expenditures on development activities. Brigham's total
capital expenditure program for 2004 is as follows:
(In Thousands)
Drilling $ 61,432
Net land and G&G 11,973
Capitalized interest and G&A 5,535
Other non-oil & gas 473
Total $ 79,413
Brigham will fund its spending in 2004 with cash flow from operations, its
current cash balance and liquidity under its senior credit facility. The
amount and allocation of actual capital expenditures will depend upon a number
of factors, including the impact of oil and gas prices, variances in drilling
and service costs, the timing of our drilling wells and variances in
forecasted production.
DRILLING CAPEX - ONSHORE GULF COAST
Brigham currently plans to spend approximately $38.9 million, or 63% of
its 2004 budgeted drilling capital expenditures in its onshore Gulf Coast
province. The company expects to drill 25 wells in its Gulf Coast province in
2004 with an average working interest of 56%.
Approximately 52% of the drilling capital budgeted for the onshore Texas
Gulf Coast province will be spent on the development of Brigham's recent
onshore Gulf Coast field discoveries. These fields include Brigham's Home
Run, Triple Crown, Floyd Fault Block and Floyd South Vicksburg field
discoveries, as well as Brigham's Providence Frio field discovery. Brigham
expects approximately 48% of the capital to be allocated towards the testing
of at least one additional high reserve potential fault block adjacent to
Brigham's prior Vicksburg field discoveries and the continued drilling of our
growing 3-D delineated exploration inventory in the Frio.
DRILLING CAPEX - ANADARKO BASIN
Brigham currently plans to spend approximately $20.8 million, or 34% of
its 2004 budgeted drilling capital expenditures in its Anadarko Basin
province. The company expects to drill 29 wells in the Anadarko Basin in 2004
with an average working interest of 29%.
Approximately 90% of the drilling capital budgeted for the Anadarko Basin
will be spent on the development of Brigham's prior field discoveries. These
fields include Brigham's Mills Ranch Hunton Field, where Brigham expects to
drill at least two development wells, and Brigham's Springer Bar Field, where
the company expects to drill approximately twelve development wells. The
remaining 10% will be spent exploration drilling, primarily in the company's
Springer Channel focus play.
DRILLING CAPEX - WEST TEXAS
Brigham currently plans to spend approximately $1.7 million, or 3% of its
2004 budgeted drilling capital expenditures in its West Texas province. The
company expects to drill 5 wells in its West Texas province with an average
working interest of 48%. Brigham plans to continue to focus its drilling
activities on its 3-D delineated exploration inventory in the Canyon Reef and
Fusselman formations of the Horseshoe Atoll trend. Approximately 23% of the
drilling capital expenditures budgeted for West Texas will be spent on
development activities and the remainder will be allocated towards exploration
drilling.
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- 02/19/2004
/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: