Exhibit 99.1 Brigham Exploration Reports Record Quarterly Production, Record Financial Results and Provides Third Quarter Forecast AUSTIN, Texas, Aug. 10 /PRNewswire-FirstCall/ -- Brigham Exploration Company (Nasdaq: BEXP) today announced its financial results for the quarter ended June 30, 2004. Highlights from Brigham's performance for the second quarter include: -- Second quarter 2004 production of 34.4 MMcfe/d, representing a 19% increase over second quarter 2003 production; -- 48% increase in revenues to $18 million, compared to revenues in last year's second quarter of $12.2 million; -- 77% increase in operating income to $8.7 million, compared to operating income in last year's second quarter of $4.9 million; and -- 126% increase in net capital expenditures to $22.6 million, relative to net capital expenditures in last year's second quarter of $10 million. SECOND QUARTER 2004 RESULTS Average daily production volumes for the second quarter 2004 were 34.4 MMcfe/d and were 19% higher when compared to production volumes in last year's second quarter. Higher production combined with an improvement in our realized sales price, net of hedges, resulted in a $5.8 million, or 48%, increase in our revenues for the second quarter 2004. Increased production volumes represented approximately $2.9 million of the $5.8 million increase in revenues, while improved price realizations represented the remainder of the increase. An increase in the number of producing wells during the second quarter 2004 led to a 3% increase in lease operating expenses. On a per unit basis, lease operating expenses for the second quarter 2004 decreased $0.06 per Mcfe to $0.42. The decrease in our per unit lease operating expenses was due to a $0.05 per Mcfe decrease in workover costs and a $0.01 decrease in ad valorem taxes. An increase in production volumes combined with an increase in the average pre-hedge sales price that we received for oil and natural gas in the second quarter 2004 were the primary reasons for the 11% increase in our total production tax expenses. Despite the increase in our total production tax expenses, on a per unit basis, production taxes were $0.02 per Mcfe lower due to reduced tax rates and tax credits on certain wells. General and administrative expenses for the second quarter 2004 were up slightly when compared to general and administrative expenses for the second quarter last year. General and administrative expenses on a per unit basis decreased 15% in the second quarter 2004 to $0.39 per Mcfe. Depletion expense for the second quarter 2004 was $5.6 million ($1.82 per Mcfe) compared to $3.8 million ($1.46 per Mcfe) in the second quarter last year. An increase in our depletion rate accounted for 61% of this increase, while an increase in production accounted for 39% of the increase. The increase in our depletion rate was primarily the result of increased costs of reserve additions during the first half of 2004. Operating income for the second quarter 2004 was $8.7 million and grew 77% when compared to operating income in the second 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 $370,000 or 30% decrease in interest expenses for the second quarter 2004. Interest expenses for the second quarter 2004 were $854,000 and $0.28 per Mcfe on a per unit basis, compared to $1.2 million and $0.47 in 2003. We reported net income available to common stockholders of $5.1 million ($0.13 per diluted share) in the second quarter 2004 versus a net income of $2.4 million ($0.10 per diluted share) for the prior year period. Net income in the current quarter was reduced by a $2.7 million provision for deferred income taxes. There was no income tax provision incurred in last year's second quarter. Our net capital expenditures for the second quarter 2004 increased 126%. Net capital expenditures for the second quarter of 2004 and 2003 were: ($'s in millions) Three Months Ended June 30, 2004 2003 Drilling $18.6 $7.5 Net land and G&G 2.4 1.0 Capitalized costs 1.6 1.4 Net capital expenditures for oil and natural gas activities $22.6 $9.9 Other property & equipment --- 0.1 Net capital expenditures $22.6 $10.0 THIRD QUARTER 2004 FORECAST The following forecasts and estimates of our third 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 third quarter 2004 production volumes to average between 34 and 38 MMcfe/d (72% natural gas). For the third quarter 2004, lease operating expenses are projected to be $0.43 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 ($0.35 to $0.39 per Mcfe). Based on these production and cost estimates, assumed average NYMEX prices of $6.00 per MMBtu for natural gas and $42.20 per barrel for oil, and taking into account current derivative contracts outstanding, we forecast that our revenue will be between $18 and $20.3 million and operating income will be between $8.9 and $10.4 million for the third quarter 2004. Gene Shepherd, Brigham's Chief Financial Officer, commented, "We are pleased with the record financial performance that the company achieved during the second quarter and first half of 2004. Our record production volumes and relatively flat costs have contributed to an expansion in our operating margins during 2004. With the expanded capital expenditure budget that has resulted from our recent equity offering, we look forward to building upon these results in the second half of 2004." CONFERENCE CALL INFORMATION Our management will host a conference call to discuss its operational and financial results for the second quarter 2004 with investors, analysts and other interested parties on Wednesday, August 11th, at 9:00 a.m. Central time. To participate in the call, participants within the U.S. please dial 800-396-2386 and participants outside the U.S. please dial 617-847-8712. The participant passcode for the call is 88907599. 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 Wednesday, August 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 53408390. In addition, a live and archived web cast of the conference call will be available over the Internet at either http://www.bexp3d.com or http://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 August 11, 2004, will be available on our website. To access the press release go to http://www.bexp3d.com and click on News Releases. The file with a copy of the press release is named Brigham Exploration Report Record Quarterly Production, Record Financial Results And Provides Third Quarter Forecast and is dated August 10, 2004. To access the other financial and statistical information that will be covered by the conference call that will take place on August 11, 2004, go to http://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 Second Quarter Conference Call and is dated August 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 http://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 June 30, Six Months Ended June 30, 2004 2003 2004 2003 Revenues: Oil and natural gas sales $17,916 $12,127 $34,735 $26,766 Other 41 43 42 81 $17,957 $12,170 $34,777 $26,847 Costs and expenses: Lease operating 1,305 1,270 2,714 2,244 Production taxes 896 806 1,759 1,744 General and administrative 1,199 1,187 2,419 2,326 Depletion of oil and natural gas 5,623 3,799 10,503 7,901 Depreciation and amortization 184 160 365 257 Accretion of discount on ARO 40 37 77 71 $9,247 $7,259 $17,837 $14,543 Operating income $8,710 $4,911 $16,940 $12,304 Interest expense (854) (1,224) (1,636) (2,506) Interest income 15 7 29 28 Other income (expense) (A) (118) (281) 9 (170) Income before income taxes & cumulative effect of adoption of accounting principle $7,753 $3,413 $15,342 $9,656 Deferred income tax expense (2,683) --- (5,183) --- Cumulative effect of adoption of accounting principle --- --- --- 268 Net income $5,070 $3,413 $10,159 $9,924 Preferred stock dividends & accretion --- 1,028 --- 2,023 Net income (loss) to common $5,070 $2,385 $10,159 $7,901 Net income (loss) to common per share: Basic $0.13 $0.12 $0.26 $0.40 Diluted $0.13 $0.10 $0.25 $0.30 Wt. Avg. common shares outstanding: Basic 39,287 20,087 39,261 19,898 Diluted 40,391 30,037 40,354 32,090 (A) Includes non-cash gain (loss) related to changes in the fair market value of our derivative contracts: $(187) $(281) $(60) $(170) BRIGHAM EXPLORATION COMPANY PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2004 2003 2004 2003 Average net daily production: Natural gas (MMcf) 25.0 17.0 24.1 16.7 Oil (Bbls) 1,566 1,990 1,699 2,232 Equivalent natural gas (MMcfe) (6:1) 34.4 28.9 34.1 30.1 Total net production: Natural gas (MMcf) 2,246 1,528 4,339 3,000 Oil (MBbls) 141 179 300 402 Equivalent natural gas (MMcfe) (6:1) 3,092 2,602 6,142 5,412 % Natural gas 73% 59% 71% 55% Sales prices (Before hedging): Natural gas ($/Mcf) $6.19 $5.60 $6.00 $6.40 Oil ($/Bbl) 37.81 29.52 35.79 31.39 Equivalent natural gas ($/MMcfe) (6:1) 6.22 5.32 5.99 5.88 Realized prices (Post hedging): Natural gas ($/Mcf) (A) $5.90 $4.72 $5.80 $5.12 Oil ($/Bbl) (A) 33.05 27.45 31.88 28.39 Equivalent natural gas ($/MMcfe) (6:1) (A) 5.79 4.66 5.66 4.95 (A) Includes the effects of hedging gains (losses) of: Natural gas ($/Mcf) $(0.29) $(0.88) $(0.20) $(1.28) Oil ($/Bbl) (4.76) (2.07) (3.91) (3.00) SUMMARY CONSOLIDATED BALANCE SHEETS (in thousands) 06/30/2004 12/31/2003 Assets: (unaudited) Current assets $27,663 $20,835 Oil and natural gas properties, net (full cost method) 226,715 197,311 Other property and equipment, net 1,195 1,219 Other non-current assets 2,690 4,851 Total assets $258,263 $224,216 Liabilities and stockholders' equity: Current liabilities $36,266 $35,579 Senior credit facility 36,700 19,000 Senior subordinated notes 20,000 20,000 Series A Preferred Stock, mandatorily redeemable 9,148 8,794 Other non-current liabilities 6,861 2,498 Total liabilities $108,975 $85,871 Stockholders' equity 149,288 138,345 Total liabilities and stockholders' equity $258,263 $224,216 BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2004 2003 2004 2003 Cash flows from operating activities: Net income $5,070 $3,413 $10,159 $9,924 Depletion, depreciation and amortization 5,807 3,959 10,868 8,158 Accretion of discount on ARO 40 37 77 71 Interest paid through issuance of add'l senior sub. notes --- 289 --- 585 Interest paid through issuance of add'l redeemable preferred stock 179 --- 354 --- Amortization of deferred loan fees 191 280 383 533 Mkt value adjustments for derivatives instruments 187 281 60 170 Cumulative effect of adoption of change in acctg principle --- --- --- (268) Deferred income tax expense 2,683 --- 5,183 --- Changes in operating assets and liabilities 2,599 197 (1,734) 4,345 Cash flows provided by operating activities $16,756 $8,456 $25,350 $23,518 Cash flows used by investing activities (21,050) (9,875) (38,107) (19,214) Cash flows (used) provided by financing activities 7,746 (2,835) 18,089 (7,391) Net increase (decrease) in cash and cash equivalents $3,452 $(4,254) $5,332 $(3,087) SUMMARY PER MCFE DATA (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2004 2003 2004 2003 Revenues: Oil and natural gas sales $5.79 $4.66 $5.66 $4.95 Other revenue 0.01 0.02 0.01 0.01 $5.80 $4.68 $5.67 $4.96 Costs and expenses: Lease operating 0.42 0.48 0.44 0.41 Production taxes 0.29 0.31 0.29 0.32 General and administrative 0.39 0.46 0.39 0.43 Depletion of natural gas and oil properties 1.82 1.46 1.71 1.46 Depreciation and amortization 0.06 0.06 0.06 0.05 Accretion of discount on ARO 0.01 0.01 0.01 0.01 $2.99 $2.78 $2.90 $2.68 Operating income $2.81 $1.90 $2.77 $2.28 Interest expense, net of interest income (A) (0.27) (0.47) (0.26) (0.46) Other income (expense) (B) 0.02 --- 0.01 --- Adjusted income before dividends & accretion $2.56 $1.43 $2.52 $1.82 (A) Calculated as interest expense minus interest income divided by production for period. (B) Excludes non-cash gains/(losses) arising from hedge accounting for certain of our oil and natural gas hedges BRIGHAM EXPLORATION COMPANY SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF AUGUST 10, 2004 (unaudited) 2004 2005 Q3 Q4 Q1 Q2 Q3 Q4 Natural Gas Swaps: MMBtu/d 1,500 1,000 --- --- --- --- $/MMBtu $4.180 $4.360 --- --- --- --- Natural Gas Collars: Floor - MMBtu/d 7,850 6,371 5,750 5,000 --- --- Floor - $/Mmbtu $4.613 $4.746 $4.663 $4.725 --- --- Cap - MMBtu/d 7,850 6,371 5,750 5,000 --- --- Cap - $/MMBtu $6.476 $6.690 $7.100 $6.712 --- --- Crude Oil Swaps: Bbls/d 150 100 --- --- --- --- $/Bbl $23.91 $23.80 --- --- --- --- Crude Oil Collars: Floor - Bbls/d 530 372 305 205 --- --- Floor - $/Bbl $26.34 $26.68 $25.56 $26.80 --- --- Cap - Bbls/d 530 372 305 205 --- --- Cap - $/Bbl $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- 08/10/2004 /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 ERP CCA MAV