EXHIBIT 99.1
[GRAPHIC OMITTED] NEWS RELEASE
FOR IMMEDIATE RELEASE
BRIGHAM EXPLORATION ANNOUNCES THREE SIGNIFICANT DISCOVERIES, PROVIDES
OPERATIONAL UPDATE AND OUTLINES 2001 CAPITAL BUDGET
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Austin, TX -- (Business Wire) - February 1, 2001 -- Brigham Exploration
Company (NASDAQ:BEXP) today announced significant discoveries in the Hunton,
Frio and Springer trends, and provided its quarterly overview of operational
activity for the three month period ending December 31, 2000. In addition,
Brigham provided estimated production and cash flow results for the fourth
quarter 2000 and outlined its planned 2001 capital expenditure budget.
Brigham intends to release its operational and financial results for the
fourth quarter and full year 2000 during the week of March 5th.
FOURTH QUARTER 2000 OPERATIONAL UPDATE
During the fourth quarter, Brigham spud 11 wells in which it retained an
aggregate average working interest of 30%. Eight of these wells have been
completed or are completing, one has been plugged and two are currently
drilling. During the full year 2000, Brigham participated in the drilling of
29 wells with an aggregate average 42% working interest. Of the wells in its
2000 drilling program, 23 have been completed or are completing, three have
been plugged, one has been temporarily abandoned and two are currently
drilling. As a result, Brigham has achieved an 88% average completion rate in
the wells that have reached total depth thus far in its 2000 drilling program.
ANADARKO BASIN
HUNTON FIELD DISCOVERY - In July 2000, Brigham spud a high potential
Hunton test (64% working interest) that offsets a currently producing Hunton
well that has produced over 15 Bcfe to date. Drilled to a total depth of over
25,000 feet, Brigham completed the well in the targeted Hunton formation in
late December. The well encountered approximately 1,200 feet of gross (340
feet of net) pay in three Hunton intervals. Subsequent to stimulation of the
two lower pay intervals, the well tested at rates in excess of 10 million
cubic feet (MMcf) of natural gas and 90 barrels of condensate per day. The
well is currently producing approximately 9.5 MMcf of natural gas and 90
barrels of condensate per day, or 5.1 MMcfe per day net to Brigham's 51%
revenue interest, at a flowing tubing pressure of 2,850 psi. Current plans
include the potential stimulation of the third Hunton pay interval and the
drilling of at least one development well during 2001.
SPRINGER CHANNEL DISCOVERY - Based on its early 2000 drilling
success in the Watonga Chikasha Springer trend, Brigham spud a well in
December 2000 to test a 3-D delineated Springer channel objective analogous
to its currently producing Price #17-2 discovery. Drilled to a total depth of
approximately 9,750 feet, Brigham recently completed its newest well in this
trend at an initial rate of 7.4 MMcf of natural gas and 90 barrels of
condensate per day, or 1.6 MMcfe per day net to Brigham's 20% revenue
interest, at a flowing tubing pressure of 4,900 psi. Brigham operates this
discovery and expects to begin producing the well to sales by late February.
This discovery well has several potential offsets that may be drilled later
in 2001. In addition, Brigham plans to spud two additional Springer channel
tests during the next thirty days in which it will retain working interests
of approximately 50%.
SPRINGER BAR DEVELOPMENT WELL - During the fourth quarter, Brigham
participated in its second developmental test of its early 2000 Springer Bar
discovery in its Bearcat Project in Grady County, Oklahoma. The first
development well, the Pitchford #1, is currently producing approximately 2.0
MMcfe per day, or 0.5 MMcfe net to Brigham's 25% revenue interest. Brigham
retained a 24% working interest and an 18.3% net revenue interest in the
second development well, the McCasland Farms, which is currently being
completed and should be stimulated and producing to sales by late February.
Brigham currently plans to participate in the drilling of five additional
development wells in this field during 2001 with an average working interest
of approximately 25%.
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GULF COAST
FRIO BRIGHT SPOT DISCOVERY - During the fourth quarter, Brigham
participated in the successful drilling of a 3-D delineated Frio bright spot
discovery. This well was completed in the targeted Frio objective in late
December at daily rates of approximately 10 MMcf of natural gas and 200
barrels of condensate per day, or 2.1 MMcfe net to Brigham's 18.75% revenue
interest. The operator recently increased the production rate to as high as
14 MMcf of natural gas per day, with plans to eventually increase the rate to
between 14 and 20 MMcf of natural gas per day. In addition, Brigham plans to
spud two additional Frio bright spot tests within the next week, in which it
will retain 31% and 34% working interests. Brigham will operate one of these
wells, and both wells should reach the Frio objective by late February.
HOME RUN FIELD DEVELOPMENT - Brigham spud its third and fourth
development wells in the Home Run Field, the Palmer State #4 and the D.J.
Sullivan C-25 #1, during the fourth quarter. Brigham retained 34% working
interests in each of these fourth quarter development wells. The Palmer State
#4 is an offset to the previously drilled Palmer State #2 and #3 wells, both
of which produced at initial rates of over 15 MMcfe per day, or approximately
4 MMcfe per day net to Brigham's revenue interest. The Palmer State #4 was
drilled to a total depth of approximately 13,350 feet and encountered
prospective pay intervals in several of the targeted Lower Vicksburg
objectives. Brigham is currently completing this well and expects to have
production test results following a series of planned fracture stimulation
operations over the next several weeks. The fourth development well, the D.J.
Sullivan C-25 #1, is currently drilling through the prospective Vicksburg pay
intervals testing the crest of the field structurally high to the Palmer
State #2, #3 and #4 wells. Brigham plans to spud five additional tests in
this project in 2001, including three additional Home Run Field development
wells and two high potential exploratory wells to test offsetting fault
blocks.
WEST TEXAS
CANYON REEF DISCOVERY - In response to continuing strong oil prices,
Brigham spud a well in late December in one of its West Texas 3-D projects.
The Brigham-operated well was recently completed in the targeted Canyon Reef
objective at a depth of approximately 9,400 feet where it encountered 172
feet of reef interval with approximately 90 feet of reef pay. Brigham expects
to begin producing the well to sales in the next ten days at an initial rate
of between 100 and 250 barrels of oil per day, or 0.4 to 1.0 net MMcfe per
day net to Brigham's 71% revenue interest. Brigham has an extensive inventory
of 3-D delineated locations in West Texas, including several adjacent and
analogous reef prospects that it plans to test in 2001.
FOURTH QUARTER PRODUCTION AND CASH FLOW ESTIMATES
Brigham estimates that its net production volumes during the fourth
quarter of 2000 were approximately 1.63 billion cubic feet of equivalent
natural gas (Bcfe), or an average of approximately 18.1 MMcfe per day, as
compared with third quarter 2000 volumes of 1.8 Bcfe and fourth quarter 1999
volumes of 1.5 Bcfe. Fourth quarter production was lower than management's
previous expectations due to less than anticipated performance on certain
wells combined with delays experienced in drilling and completing wells late
in the year.
Brigham estimates that it generated earnings before interest, taxes,
depreciation, depletion and amortization (EBITDA) during the fourth quarter
2000 of approximately $2.5 million, as compared to third quarter 2000 EBITDA
of $3.6 million and fourth quarter 1999 EBITDA of $3.3 million. The estimated
decline in EBITDA in the fourth quarter of 2000 was attributed to lower
production volumes and to natural gas and oil hedging losses of approximately
$7.8 million.
2001 CAPITAL EXPENDITURE BUDGET
Brigham also announced the approval, by its board of directors, of a
$32.5 million capital expenditure budget for 2001, which represents an
approximate 32% increase over estimated capital expenditures of $24.5 million
in 2000. As outlined below, the majority of Brigham's planned 2001
expenditures will be directed towards drilling in its deep prospect inventory
in a continued effort to focus resources on its primary objective of growing
production volumes and cash flow. The 2001 capital budget includes the
planned drilling of 25 wells with an average working interest of 40%. Due to
its recent field discoveries, approximately 65% of Brigham's planned 2001
drilling expenditures are allocated to development drilling. In addition,
approximately 75% of budgeted drilling expenditures will be directed to four
project areas in the Springer and Hunton trends of the Anadarko Basin, and
the Vicksburg and Frio trends of the Texas Gulf Coast, areas where Brigham
has experienced significant recent exploration and development drilling
success.
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Net Capital Expenditures ($MM)
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2000 2001
Estimated Budget
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Drilling $17.8 $22.2
Land and G&G (a) 0.6 3.8
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Total Exploration and Development 18.5 26.0
Capitalized Costs and Other 6.1 6.5
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Total Net Capital Expenditures $24.5 $32.5
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(a) 2000 estimate is net of $2.1 million of proceeds received from the sale
of interests in certain 3-D seismic assets.
MANAGEMENT COMMENT
Bud Brigham, the Company's Chairman, CEO and President, stated, "As
stated in our November 7, 2000 operational press release, we've been
frustrated by operational delays associated with our current robust industry
environment. These delays, combined with lower than expected production from
several third quarter wells, combined to cause an uncharacteristic decline in
fourth quarter production. Fortunately, our delayed, but extremely successful
fourth quarter drilling activity is now positively impacting our first
quarter. The Hunton and Frio discoveries alone are generating approximately 7
net MMcfe per day in new production. Wells currently completing, such as our
Springer, Canyon Reef and Home Run discoveries, should add additional volumes
over the next thirty days. In addition, wells currently drilling or soon to
be drilled, including two higher equity Frio wells, the crestal Home Run
well, and two higher equity Springer wells, have the potential to add
incremental net production volumes early in 2001."
Mr. Brigham further remarked, "The depth and quality of our prospect
inventory was clearly demonstrated over the past eighteen months. We've made
three significant field discoveries - the Home Run Field, the Springer Bar
Field, and our new Hunton discovery. Each of these fields has gross reserve
potential of over 100 Bcfe. Our 2001 capital budget capitalizes on our recent
drilling successes. Approximately 65% of our planned 2001 drilling is
developmental, providing a substantial wedge of lower risk, but high return
drilling. In addition, we will again drill several high potential exploratory
tests in 2001, including planned tests of offsetting fault blocks to our Home
Run Field that have a combined reserve potential of over 300 Bcfe."
Mr. Brigham concluded, "Early this year we expect to benefit from
exciting new production additions, an accelerating and highly profitable
drilling program, the expiration of 1/3 of our natural gas hedge contracts in
April and an approximate $0.55 per MMBtu increase in our natural gas hedge
price in the same month. This combination should provide our shareholders
with dramatically improved financial results in 2001."
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.
Contact: Christopher A. Phelps, Vice President - Finance & Strategic Planning
(512) 427-3300 / investor@bexp3d.com
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BRIGHAM EXPLORATION COMPANY
DRILLING ACTIVITY BY REGION
Q4 2000 Full Year 2000
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Gross Net WI% Gross Net WI%
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ANADARKO BASIN Wells Completed 3 0.6 21% 9 3.9 44%
P&A Wells 1 0.8 76% 1 0.8 76%
Wells Drilling 1 0.1 11% 1 0.1 11%
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Total Wells Spud 5 1.5 30% 11 4.8 44%
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Completion Rate 75% 45% 90% 84%
GULF COAST (A) Wells Completed 4 0.6 16% 13 4.0 31%
P&A Wells 0 0.0 0% 2 1.0 51%
Wells Drilling 1 0.3 34% 2 1.3 67%
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Total Wells Spud 5 1.0 19% 17 6.4 38%
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Completion Rate 100% 100% 87% 80%
WEST TEXAS Wells Completed 1 0.8 84% 1 0.8 84%
P&A Wells 0 0.0 0% 0 0.0 0%
Wells Drilling 0 0.0 0% 0 0.0 0%
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Total Wells Spud 1 0.8 84% 1 0.8 84%
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Completion Rate 100% 100% 100% 100%
OVERALL Wells Completed 8 2.1 26% 23 8.8 38%
P&A Wells 1 0.8 76% 3 1.8 59%
Wells Drilling 2 0.4 22% 3 1.4 48%
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Total Wells Spud 11 3.3 30% 29 12.0 42%
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Completion Rate 89% 73% 88% 83%
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(a) Includes five wells drilled and completed during 2000 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.