================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
_______________
Date of Report (Date of earliest event reported): AUGUST 7, 2001
BRIGHAM EXPLORATION COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 000-22433 75-2692967
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
6300 BRIDGEPOINT PARKWAY
BUILDING TWO, SUITE 500
AUSTIN, TEXAS 78730
(Address, including zip code, of principal executive offices)
Registrant's telephone number, including area code: (512) 427-3300
================================================================================
Item 5. OTHER EVENTS.
On August 7, 2001, the Registrant issued a press release announcing its
operational results for the quarter ended June 30, 2001. The full text of the
press release, other than (a) the fourth sentence of the first paragraph under
the heading "Texas Gulf Coast"; (b) the second sentence of the second paragraph
under the heading "Texas Gulf Coast" and (c) the second sentence of the fifth
paragraph under the heading "Texas Gulf Coast", which is set forth in Exhibit
99.1 hereto, is filed and incorporated in this Report as if fully set forth
herein.
1
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
Item Exhibit
---- -------
99.1* Operational Press Release dated
August 7, 2001.
- --------
* filed herewith.
2
Item 9. REGULATION FD DISCLOSURE
The fourth sentence of the first paragraph under the heading "Texas Gulf
Coast", the second sentence of the second paragraph under the heading "Texas
Gulf Coast" and the second sentence of the fifth paragraph under the heading
"Texas Gulf Coast" of the press release, appearing in Exhibit 99.1 hereto, are
not filed but are furnished pursuant to Regulation FD.
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BRIGHAM EXPLORATION COMPANY
Date: August 7, 2001 By: /s/ Curtis F. Harrell
-----------------------------
Curtis F. Harrell
Chief Financial Officer
4
INDEX TO EXHIBITS
Item Number Exhibit
------------ -------
99.1* Press Release dated
August 7, 2001.
EXHIBIT 99.1
[GRAPHIC OMITED]
BRIGHAM NEWS RELEASE
EXPLORATION COMPANY FOR IMMEDIATE RELEASE
BRIGHAM EXPLORATION ANNOUNCES MAJOR VICKSBURG FIELD DISCOVERY, OTHER RECENT
DRILLING SUCCESSES AND RECORD SECOND QUARTER PRODUCTION VOLUMES
================================================================================
Austin, TX -- (Business Wire) - August 7, 2001 -- Brigham Exploration
Company (NASDAQ:BEXP) today announced a significant new field discovery in the
Vicksburg formation in Brooks County, Texas and a 90% net completion rate thus
far in 2001. The Company also announced its fourth consecutive Frio bright spot
discovery in Matagorda County, Texas, four additional Springer channel drilling
successes in Blaine County, Oklahoma and its fourth consecutive successful oil
well completion in West Texas. In addition, Brigham announced a record 68%
growth in production volumes for the second quarter 2001 relative to the second
quarter 2000.
TEXAS GULF COAST
Triple Crown Field Discovery - The Brigham-operated Dawson #1 well was
-------------------------------
drilled as an exploratory test of one of several downthrown fault blocks
adjacent to Brigham's Home Run Field in its Diablo 3-D Seismic Project in Brooks
County, Texas. The Dawson #1 was drilled to a depth of 14,256 feet and
encountered an apparent 149 feet of net pay in the Upper Vicksburg and 25 feet
of net pay in the Lower Vicksburg sand intervals. Brigham retained a 50% working
interest and 37.5% net revenue interest, which is subject to back-in working
interests that would ultimately reduce Brigham's working interest in the well to
42% at 200% payout. Currently Brigham is perforating and stimulating the
various pay intervals, with plans to commingle all productive upper and lower
Vicksburg zones by late August. Brigham's 3-D interpretative mapping indicates
that the Triple Crown Field should cover approximately 1,100 acres with
estimated gross reserves ranging from 40 Bcfe to 200 Bcfe. The Company expects
to spud its first development well of the Triple Crown Field some time in the
third or fourth quarter.
Bud Brigham, the Company's Chairman, CEO and President, stated, "We are
extremely excited about this discovery and the impact we expect it to have on
our Company's net asset value, particularly since it has substantially proven up
the lowest downthrown fault block adjacent to our Home Run Field. We believe
that the Triple Crown Field could ultimately produce between 15 and 75 Bcfe net
to our Company. Further, it substantially reduces the risk of other untested
fault blocks, given that each of these adjacent fault blocks are structurally
low to the Home Run Field but flat or high to our Triple Crown Field discovery."
Fifth Consecutive Completion at Home Run Field- In Brigham's Home Run
----------------------------------------------------
Field, which again is upthrown from the Company's new Triple Crown Field
discovery, Brigham has successfully drilled and is currently completing its
fourth development well since the discovery of the field in late 1999.
The Palmer State #5, in which Brigham has retained a 34% working interest
and 26% net revenue interest, encountered 49 net feet of apparent pay in the
Lower Vicksburg formation. The Palmer #5 is an offsetting location to Brigham's
recently completed Sullivan C-25 development well, which had comparable log
characteristics and began producing to sales at a rate of 10 MMcf of natural gas
and 700 barrels of condensate per day. The Company plans to fracture stimulate,
commingle all Lower Vicksburg zones and begin producing the well to sales within
the next 45 days.
The four wells completed in the Home Run Field thus far have produced a
cumulative 5.2 Bcfe to date. At year-end 2000, the Home Run Field included net
booked proved reserves of 17 Bcfe as compared to total net reserve potential,
once the field is fully developed, of approximately 45 Bcfe. A fifth development
well is scheduled to spud at Home Run Field in the next several weeks, and a
sixth development well may spud late in the fourth quarter of 2001 or early in
the first quarter of 2002.
Page 7
Fourth Consecutive Frio Bright Spot Discovery - During the second quarter,
----------------------------------------------
Brigham participated in the successful drilling of its fourth consecutive 3-D
delineated Frio bright spot discovery in Matagorda County, Texas. Brigham
retained a 20% working interest in the well, which logged an apparent 42 feet of
net pay with 29% average porosity in multiple Lower Frio sands. Completion
operations and pipeline construction are underway with sales expected to begin
by mid-August. Brigham has one additional Frio well drilling, in which the
Company retains a 31% working interest, and three additional Frio tests
currently planned for the remainder of 2001.
ANADARKO BASIN
Four Springer Channel Discoveries - In the second quarter, Brigham
------------------------------------
successfully completed four of five Springer channel wells drilled in Blaine
County, Oklahoma. As a result, the Company has now successfully completed seven
Springer channel discoveries in its last eight attempts. The previously
announced Price 17-3 discovery began producing to sales in May at an initial
rate of 2.8 MMcf of natural gas and 70 barrels of condensate per day, or 1.3
MMcfe net to Brigham's 41% net revenue interest.
In July, Brigham completed two successful offsets to a discovery that was
announced in the first quarter of 2001. The previously announced discovery well
is currently producing approximately 6.8 MMcfe per day, or 1.4 MMcfe net to
Brigham's interest. Brigham's first offset, in which the Company retained a 24%
working interest and 20% net revenue interest, has been completed and is
currently awaiting a pipeline connection. Brigham's second offset, in which the
Company retained a 47% working interest and 38% net revenue interest, is
currently being completed. Both wells are likely to begin producing to sales in
late August at a combined rate of 4 to 10 MMcf of natural gas and 60 to 150
barrels of condensate per day, or 1.1 to 3.8 MMcfe net to Brigham's revenue
interest.
In addition, completion operations are currently underway on the Company's
fourth successful Springer channel well for the quarter, in which Brigham
retains a 51% working interest. This discovery should begin producing to sales
by late August. The Company plans to drill one to two additional Springer
channel tests during the second half of 2001.
WEST TEXAS
Fourth Consecutive West Texas Oil Discovery - In May, Brigham began
------------------------------------------------
producing to sales its fourth consecutive West Texas oil discovery, a Canyon
Reef well that encountered approximately 179 feet of reef pay at a depth of
approximately 9,400 feet. Since the well was brought on line in May, it has
produced approximately 250 barrels of oil per day, or 1.2 MMcfe per day net to
Brigham's 77% revenue interest. Brigham's four recent drilling successes in
West Texas are currently producing approximately 570 barrels of oil per day net
to Brigham's interest, or 63% of Brigham's average daily oil production rate for
the fourth quarter of 2000. Brigham intends to continue to high-grade its
inventory of West Texas prospects and may spud a number of additional wells in
this province by year-end.
DRILLING STATISTICS AND PRODUCTION VOLUMES
Thus far in its 2001 drilling program, Brigham has completed 16 wells (7.7
net) and plugged 3 wells (.8 net), yielding an 84% completion rate (90% net).
Brigham currently has three wells (0.5 net) drilling with seven additional wells
expected to spud in the next sixty days. In the second quarter, Brigham's
production volumes averaged 20.7 MMcf of natural gas per day and 1,453 barrels
of oil per day. Brigham's 29.5 MMcfe per day second quarter average production
rate is approximately 68% greater than volumes produced in the second quarter of
2000 and 28% greater than volumes produced in the first quarter of 2001.
Bud Brigham further indicated, "Our drilling successes have proven the
quality and depth of our prospect inventory. Over 90% of our 2001 capital
expenditures are planned for our five focus plays: the Vicksburg and Frio plays
of the onshore Gulf Coast, the Springer and Hunton plays of the Anadarko Basin,
and the Canyon Reef oil play in West Texas. In these focus plays we've
successfully completed 22 wells in 23 attempts over the past eighteen months.
Most of this drilling success occurred in the first half of 2001, generating
substantial reserve additions and production volume growth for our shareholders.
Given our current completions, the ongoing development of our Home Run Field,
the planned development of our new Triple Crown Field discovery, and our high
potential and, to date, highly successful exploration program, we expect
continued reserve additions and production volume growth for the second half of
2001."
Page 8
SECOND QUARTER 2001 EARNINGS RELEASE AND CONFERENCE CALL INFORMATION
Brigham will issue a press release regarding its second quarter 2001
financial results after the close of market trading on Wednesday, August 8th.
Brigham's management will host a conference call to discuss Brigham's
operational and financial results for the second quarter ended June 30, 2001
with investors, analysts and other interested parties on Thursday, August 9, at
9:00 am Central time. To participate in the call, please dial 888-343-7167 and
ask for the Brigham Exploration conference call (conference reservation number
19447498). A telephone recording of the conference call will be available to
interested parties approximately one hour after the call is completed through
5:00 p.m. Central time on Tuesday, August 14th. To access the recording, please
dial 800-633-8284. 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.
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 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: John Turner, Manager of Finance and Investor Relations
(512) 427-3300 / investor@bexp3d.com