Exhibit 99.1 Brigham Exploration Reports Record First Quarter 2004 Production and Financial Results AUSTIN, Texas, May 10 /PRNewswire-FirstCall/ -- Brigham Exploration Company (Nasdaq: BEXP) today announced its financial results for the quarter ended March 31, 2004. Highlights from Brigham's performance for the first quarter include: -- First quarter 2004 production of 33.9 MMcfe/d, representing a 9% increase over first quarter 2003 production and a 15% sequential increase over fourth quarter 2003 production; -- 15% increase in revenues to $16.8 million, compared to revenues in last year's first quarter of $14.7 million; -- 11% increase in operating income to $8.2 million, compared to operating income in last year's first quarter of $7.4 million; and -- 111% increase in net capital expenditures to $17 million, relative to net capital expenditures in last year's first quarter of $8 million. FIRST QUARTER 2004 RESULTS Average daily production volumes for the first quarter 2004 were 33.9 MMcfe/d and were 9% higher when compared with production volumes in last year's first quarter and 15% higher than production volumes in the fourth quarter 2003. Revenue from the sale of oil and natural gas for the first quarter increased 15% despite a 10% decrease in our pre-hedge sales price. Increased production volumes resulted in a $2.4 million increase in revenues, and a decline in losses on the settlement of derivative contracts resulted in an additional $2.6 increase in revenues. These increases were partially offset by a $2.8 million decrease in revenues due to lower commodity prices. An increase in workover activity, ad valorem taxes and the number of producing wells in the first quarter 2004 led to a 45% increase in lease operating expenses. Lease operating expenses, on a per unit basis, for the first quarter 2004 increased $0.11 per Mcfe to $0.46. Increases in compressor rental and maintenance expense and fees paid for overhead represented approximately $0.03 per Mcfe of the increase, while the increase in workover costs and ad valorem taxes represented $0.08 of the increase. A decrease in the average pre-hedge sales price that we received for oil and natural gas in the first quarter 2004 resulted in an 8% decline in our total production tax expense and $0.05 per Mcfe decline on a per unit basis. General and administrative expenses for the first quarter 2004 were up 7% when compared to general and administrative expenses for the first quarter last year. A decrease in the percentage of our total general and administrative costs that we capitalized in the first quarter 2004 and an increase in employee compensation expenses, corporate insurance costs and franchise taxes were the primary reasons for the increase in general and administrative expenses. General and administrative expenses on a per unit basis decreased 2% in the first quarter 2004 to $0.40 per Mcfe. Depletion expense for the first quarter 2004 was $4.9 million ($1.60 per Mcfe) compared to $4.1 million ($1.46 per Mcfe) in the first quarter last year. An increase in our depletion rate accounted for 55% of this increase while an increase in production accounted for 45% of the increase. Operating income for the first quarter 2004 was $8.2 million and grew 11% when compared to operating income in the first quarter last year. A decline in our weighted average debt balances outstanding under both our senior credit facility and our senior subordinated notes, combined with a decrease in the interest rate that we paid on those borrowings, were the primary reasons for the $500,000 or 39% decrease in interest expenses for the first quarter 2004. Interest expenses for the first quarter 2004 were $782,000 and $0.26 per Mcfe on a per unit basis, compared to $1.3 million and $0.46 in 2003. We reported net income available to common stockholders of $5.1 million ($0.13 per diluted share) in the first quarter 2004 versus a net income of $5.5 million ($0.20 per diluted share) for the prior year period. Net income in the current quarter was reduced by a $2.5 million provision for deferred income taxes. There was no income tax provision incurred in last year's first quarter. Our capital expenditures for the first quarter 2004 increased 111%. Net capital expenditures for the first quarter of 2004 and 2003 were: ($'s in millions) Three Months Ended March 31, 2004 2003 Drilling $12.6 $5.2 Net land and G&G 2.8 1.3 Capitalized costs 1.6 1.7 Proceeds from the sale of assets (0.0) (0.2) Net capital expenditures $17.0 $8.0 SECOND QUARTER 2004 FORECAST The following forecasts and estimates of our second quarter 2004 results are forward looking statements subject to the risks and uncertainties identified in the "Forward Looking Statements Disclosure" at the end of this release. We currently expect second quarter 2004 production volumes to average between 34 and 36 MMcfe/d (70% natural gas). For the second quarter 2004, lease operating expenses are projected to be $0.45 per Mcfe, production taxes are projected to be approximately 5.5% of pre-hedge oil and natural gas revenues, and general and administrative expenses are projected to be $1.2 million ($0.37 to $0.39 per Mcfe). Based on these production and cost estimates, assumed average NYMEX prices of $5.80 per MMBtu for natural gas and $38.00 per barrel for oil, and taking into account current derivative contracts outstanding, we forecast that our revenue will be between $16.9 and $18 million and operating income will be between $8.2 and $8.9 million for the second quarter 2004. Gene Shepherd, Brigham's Chief Financial Officer, commented, "We are very pleased with our first quarter operating performance. Revenues and operating income were all up substantially, due to the strong production growth that resulted from the acceleration in our drilling activity beginning in late 2003 and the continued strong commodity prices. Going forward, we expect continued growth in our production volumes, driven by the 74% increase in our year-over- year drilling budget. Combining this anticipated production growth with strong commodity prices should generate substantial value appreciation for our shareholders over the coming quarters." Shepherd further added, "Given high commodity prices and our improved revenue realizations, our operating profit per Mcfe expanded to $4.37, relative to $3.69 in 2003 and $2.45 in 2002. We believe that this illustrates the opportunity we are seizing to compound value for our shareholders through our accelerated drilling program in this window of high commodity prices." CONFERENCE CALL INFORMATION Our management will host a conference call to discuss its operational and financial results for the first quarter 2004 with investors, analysts and other interested parties on Tuesday, May 11th, at 9:00 a.m. Central time. To participate in the call, participants within the U.S. please dial 800-299-8538 and participants outside the U.S. please dial 617-786 -2902. The participant passcode for the call is 99234703. A telephone recording of the conference call will be available to interested parties approximately two hours after the call is completed through 11:59 p.m. Central time on Tuesday, May 25th. 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 35674419. 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 . 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 May 11, 2004, will be available on our website. To access the press release go to www.bexp3d.com and click on News Releases. The file with a copy of the press release is named Brigham Exploration Reports Record First Quarter 2004 Production and Financial Results and is dated May 10, 2004. To access the other financial and statistical information that will be covered by the conference call that will take place on May 11, 2004, go to www.bexp3d.com and click on Event Calendar. The file with the other financial and statistical information is named Financial and Statistical Information for the First Quarter Conference Call and is dated May 11, 2004. ABOUT BRIGHAM EXPLORATION Brigham Exploration Company 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. 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 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 - Finance & Investor Relations (512) 427-3300 / investor@bexp3d.com BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2004 2003 Revenues: Oil and natural gas sales $16,819 $14,639 Other 1 38 $16,820 $14,677 Costs and expenses: Lease operating 1,409 974 Production taxes 863 938 General and administrative 1,220 1,139 Depletion of natural gas and oil properties 4,880 4,102 Depreciation and amortization 181 97 Accretion of asset retirement obligation 37 34 $8,590 $7,284 Operating income $8,230 $7,393 Interest expense (782) (1,282) Interest income 14 21 Other income (expense) (A) 127 111 Income (loss) before income taxes and accounting change $7,589 $6,243 Income tax benefit (expense) (2,500) --- Net income (loss) before accounting change $5,089 $6,243 Cumulative effect of adoption of accounting principle --- 268 Net income (loss) $5,089 $6,511 Preferred stock dividend & accretion --- 995 Net income (loss) to common $5,089 $5,516 Net income (loss) to common per share: Basic $0.13 $0.28 Diluted 0.13 0.20 Wt. avg. common shares outstanding: Basic 39,166 19,707 Diluted 40,211 32,111 (A) Includes non-cash gain (loss) related to changes in the fair market value of our derivative contracts of: $127 $111 BRIGHAM EXPLORATION COMPANY PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA (unaudited) Three Months Ended March 31, 2004 2003 Average net daily production: Natural gas (MMcf) 23.3 16.4 Oil (Bbls) 1,773 2,475 Equivalent natural gas (MMcfe) (6:1) 33.9 31.2 Total net production: Natural gas (MMcf) 2,093 1,472 Oil (MBbls) 160 223 Equivalent natural gas (MMcfe) (6:1) 3,050 2,808 % Natural gas 69% 52% Sales prices (Before hedging): Natural gas ($/Mcf) $5.79 $7.23 Oil ($/Bbl) 34.01 32.88 Equivalent natural gas (MMcfe) (6:1) 5.75 6.40 Realized prices (Post hedging): Natural gas ($/Mcf) (A) $5.69 $5.53 Oil ($/Bbl) (A) 30.84 29.16 Equivalent natural gas (MMcfe) (6:1) 5.51 5.21 (A) Includes the effects of hedging gains (losses) of: Natural gas ($/Mcf) $(0.10) $(1.70) Oil ($/Bbl) (3.17) (3.72) SUMMARY CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) 03/31/2004 12/31/2003 Assets: Current assets $22,376 $20,835 Oil and gas properties, at cost, net 209,503 197,311 Other property and equipment, at cost, net 1,251 1,219 Other non-current assets 2,771 4,851 Total assets $235,901 $224,216 Liabilities and stockholders' equity: Current liabilities $31,996 $35,579 Notes payable 29,200 19,000 Senior subordinated notes 20,000 20,000 Series A Preferred Stock, mandatorily redeemable 8,969 8,794 Other non-current liabilities 2,923 2,498 Total liabilities $93,088 $85,871 Stockholders' equity 142,813 138,345 Total liabilities and stockholders' equity $235,901 $224,216 BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2004 2003 Cash flows from operating activities: Net income (loss) $5,089 $6,511 Depletion, depreciation and amortization 5,061 4,199 Accretion of asset retirement obligation 37 34 Interest paid through issuance of add'l senior sub. notes --- 296 Amortization of deferred loan fees and debt issuance cost 192 253 Interest paid through issuance of add'l redeemable preferred stock 175 --- Market value adjustments for derivatives (127) (111) Deferred income tax (benefit) expense 2,500 --- Cumulative effect of adoption of accounting principle --- (268) Changes in assets and liabilities (4,333) 4,148 Net cash provided by operating activities $8,594 $15,062 Net cash used by investing activities (17,057) (9,339) Net cash provided (used) by financing activities 10,343 (4,556) Net increase (decrease) in cash and cash equivalents $1,880 $1,167 SUMMARY PER MCFE DATA (unaudited) Three Months Ended March 31, 2004 2003 Revenues: Oil and natural gas sales $5.51 $5.21 Other 0.00 0.01 $5.51 $5.22 Costs and expenses: Lease operating 0.46 0.35 Production taxes 0.28 0.33 General and administrative 0.40 0.41 Depletion of natural gas and oil properties 1.60 1.46 Depreciation and amortization 0.06 0.03 Accretion of asset retirement obligation 0.01 0.01 $2.81 $2.59 Operating income $2.70 $2.63 Interest expense, net of interest income (0.25) (0.45) Other income (expense) (A) 0.00 0.00 Net income before preferred stock dividend & accretion $2.45 $2.18 (A) Adjusted to exclude non-cash income (expense) related to changes in the fair market value of our derivative contracts. BRIGHAM EXPLORATION COMPANY SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF MAY 10, 2004 (unaudited) 2004 2005 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Natural Gas Swaps: MMBtu/d 2,500 1,500 1,000 --- --- --- --- $/MMBtu $4.252 $4.180 $4.360 --- --- --- --- Natural Gas Collars: Floor - MMBtu/d 5,600 7,850 6,371 5,750 5,000 --- --- Floor - $/Mmbtu $4.112 $4.613 $4.746 $4.663 $4.725 --- --- Cap - MMBtu/d 5,600 7,850 6,371 5,750 5,000 --- --- Cap - $/MMBtu $5.672 $6.476 $6.690 $7.100 $6.712 --- --- Crude Oil Swaps: Bbls/d 225 150 100 --- --- --- --- $/Bbl $24.52 $23.91 $23.80 --- --- --- --- Crude Oil Collars: Floor - Bbls/d 550 530 372 305 205 --- --- Floor - $/Bbl $24.09 $26.34 $26.68 $25.56 $26.80 --- --- Cap - Bbls/d 550 530 372 305 205 --- --- Cap - $/Bbl $30.60 $32.20 $31.71 $30.18 $32.51 --- --- Note: Hedged volumes and prices reflected in this table represent average contract amounts for the quarterly periods presented; natural gas hedge prices and crude oil hedge contract prices are based on NYMEX pricing. SOURCE Brigham Exploration Company -0- 05/10/2004 /CONTACT: John Turner, Manager - Finance & Investor Relations of Brigham Exploration Company, +1-512-427-3300, or investor@bexp3d.com / /Web site: http://www.streetevents.com / /Web site: http://www.bexp3d.com / (BEXP) CO: Brigham Exploration Company ST: Texas, Oklahoma IN: OIL SU: ERN CCA MAV ERP