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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): MAY 6, 2002
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
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ITEM 5. OTHER EVENTS.
On May 6, 2002, the Registrant issued a press release announcing first
quarter 2002 operational results. The full text of the press release, other
than (a) the fifth sentence of the paragraph labeled Adjacent Fault Blocks under
the heading "Gulf Coast Vicksburg Trend", which is set forth in Exhibit 99.1
hereto, is filed and incorporated in this Report as if fully set forth herein.
On May 7, 2002, the Registrant issued a press release announcing first
quarter 2002 fiancial results. The full text of the press release which is set
forth in Exhibit 99.2 hereto, is filed and incorporated in this Report as if
fully set forth herein.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
Item Exhibit
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99.1* Press Release dated
May 6, 2002.
99.2* Press Release dated
May 7, 2002.
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* filed herewith.
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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: May 8, 2002 By: /s/ Curtis F. Harrell
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Curtis F. Harrell
Executive Vice President &
Chief Financial Officer
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INDEX TO EXHIBITS
Item Number Exhibit
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99.1* Press Release dated
May 6, 2002.
99.2* Press Release dated
May 7, 2002.
EXHIBIT 99.1
[GRAPHIC OMITTED]
BRIGHAM EXPLORATION NEWS RELEASE
EXPLORATION COMPANY FOR IMMEDIATE RELEASE
BRIGHAM EXPLORATION PROVIDES ITS Q1 2002 OPERATIONAL UPDATE INCLUDING TWO
SUCCESSFUL VICKSBURG COMPLETIONS
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Austin, TX -- May 6, 2002 -- Brigham Exploration Company (NASDAQ:BEXP) today
announced two successful Vicksburg completions and provided an operational
update for the first quarter of 2002.
GULF COAST VICKSBURG TREND
Triple Crown Field - Brigham recently completed its third well in the field, the
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Sullivan #F-31 (42% working interest, 31% net revenue interest), which found
approximately 65 feet of Upper Vicksburg net pay. Subsequent to the fracture
stimulation of three separate pay intervals, the Sullivan #F-31 began producing
to sales in late April at a commingled rate of approximately 8.4 MMcf of natural
gas and 94 barrels of condensate per day (9.0 MMcfe), or 2.8 MMcfe per day net
to Brigham's revenue interest. Brigham currently plans to drill two additional
development wells in the field in 2002, the first of which is expected to spud
early in the third quarter.
Home Run Field - Brigham recently completed the Sullivan #C-28, its sixth
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successful well in the field. The well began producing to sales in January at
9.3 MMcfe per day, or 2.3 MMcfe per day to Brigham's 25% net revenue interest.
Future development plans include the spud of the Palmer #5R in the next 60 days,
and the drilling of another development well later in the year. The Palmer #5
was originally drilled in 2001, and although the well experienced a casing
failure, the well encountered pay intervals comparable to that of the
successfully completed D.J. Sullivan #C-25 well.
Adjacent Fault Blocks - In the third quarter Brigham plans to test one of
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several adjacent fault blocks structurally low to the Home Run Field and
structurally high to the Triple Crown Field. To date, three wells have
penetrated the Upper Vicksburg 9800' sand in the "Floyd" fault block prior to
crossing a fault. All three of these wells have been productive in this Upper
Vicksburg 9800' sand. Brigham expects the Floyd well to test additional Upper
Vicksburg intervals that are now producing in the adjacent Triple Crown Field
and the Lower Vicksburg intervals that are currently producing in the adjacent
Home Run Field. The Company will retain a 34% working and 25% net revenue
interest in the Floyd fault block test, which has a reserve potential of
approximately 50 Bcfe.
GULF COAST FRIO TREND
Providence Field - During February 2002, Brigham completed the discovery well,
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the Staubach #1, which is currently producing approximately 1,600 barrels of oil
and 4.3 MMcf of natural gas per day, or 4.3 MMcfe net to Brigham's 31% revenue
interest. The Staubach #1 is expected to reach payout of its drilling and
completion costs in May, at which time Brigham's working interest will reduce
from 41% to approximately 34%.
While drilling its first offset to the discovery, Brigham experienced a loss of
surface control from an unanticipated pay interval at 10,370 feet, causing the
well to flow natural gas to the surface. Five days later, the Burkhart #1
bridged off naturally and the well was shut in. This pay interval is shallower
and fault separated from the Lower Frio interval currently producing in the
Staubach #1.
Brigham spud the Burkhart #1R replacement/relief well on April 8th, which is
currently drilling as planned at a depth of approximately 9,800 feet. The
Company plans to intersect and cement the original Burkhart #1 borehole over the
Middle Frio interval that generated the uncontrolled flow, and to subsequently
drill deeper in order to attempt to develop the Lower Frio sands currently
producing in the Staubach #1. Brigham expects results from drilling of this
relief/replacement well by late May.
In June, Brigham plans to spud the Heubner #1, which is an additional offset to
the Staubach #1. This well will be operated by Carrizo Oil & Gas, Inc.
(NASDAQ:CRZO), and Brigham will retain a working interest of approximately 34%.
This well will test the northern end of the approximately 800 acre structure,
and results are expected by late August. With continued drilling success,
Brigham expects to spud an additional development well during the fourth quarter
2002.
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EXHIBIT 99.1
GULF COAST WILCOX TREND
Dinn Ranch Field Discovery - As reported by EOG Resources, Inc. (NYSE:EOG) in a
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press release issued on April 29, 2002 and EEX Corporation (NYSE: EEX) in a
release dated May 1, 2002, the two operators are developing a potentially
substantial field discovery in the deep Wilcox trend. As a result, two wells
were reportedly producing to sales at a combined 34 MMcfe of natural gas
equivalent per day at the end of the first quarter, two additional Dinn Ranch
development wells were completing and a third well was drilling. One of the
wells currently completing, the EEX operated Lopez Mineral Trust #1, encountered
approximately 300 feet of apparent pay. Brigham retained a 2% overriding
royalty interest in the discovery, which converts at 100% payout to a 12.5%
working interest with a 1% overriding royalty interest. At 200% payout,
Brigham's interest converts to a 25% working interest. Completion operations
are expected to conclude in late May, and production should go to sales
beginning in June.
Brigham anticipates that an additional development well will be spud in the
third quarter, in which Brigham will retain the same reversionary working
interests as the Lopez Mineral Trust #1. If successful, a third development
well could be drilled late in the year, and Brigham would retain a 25% ground
floor working interest in this test.
ANADARKO BASIN SPRINGER TREND
In March, Brigham spud the first of four successive Springer channel tests.
Brigham retained a 33% working interest in the first test, which is expected to
reach total depth by late May. The Company's working interest in this four well
program is expected to range between 24% and 69%, and several of the wells are
intended to further delineate a Springer channel trend Brigham successfully
discovered in 2001. Brigham continues to add to its substantial inventory of
drilling locations in the Springer Trend, including the recent acquisition of
approximately 14,000 gross acres (4,600 net) over various prospects and leads in
the area.
WEST TEXAS HORSESHOE ATOLL TREND
Exploration Drilling - In 2001, Brigham completed four consecutive West Texas
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wells that are currently producing approximately 850 barrels of oil per day, or
over 600 barrels of oil per day net to Brigham's revenue interest. Seeking to
capitalize on this recent success, the Company has commenced a five well
drilling program. Brigham will retain working interests ranging from 35% to 50%
in these wells, in which the majority of the Company's costs are carried to
casing point by industry participants. Three of these wells are currently
drilling, the first of which should reach its total depth by late May. Brigham
continues to generate and lease 3-D delineated drilling locations utilizing its
inventory of over 2,000 square miles of 3-D seismic data in West Texas.
FIRST QUARTER 2002 OPERATIONAL UPDATE
Brigham spud 5 wells during the first quarter in which it retained an average
working interest of 26%. Two of these wells have been completed and three are
currently drilling. Brigham has achieved a 100% average gross and net completion
rate thus far in its 2002 drilling program. Since the end of the quarter, three
additional wells have been spud. Production volumes averaged 25.3 MMcfe per day
for the first quarter 2002, and the Company exited the first quarter at an
estimated 30 MMcfe per day.
MANAGEMENT COMMENTS
Bud Brigham, the Company's Chairman, CEO and President, stated, "We're pleased
with our drilling results thus far in 2002. We continue to capitalize on our
drilling successes in our five focus plays, where we've completed 26 wells in 29
recent attempts. In addition, our carried interest in the Dinn Ranch Wilcox
Field development drilling provides additional production and reserve upside for
our Company.
Mr. Brigham further stated, "Due to our recent drilling successes, our growth in
production volumes and the improvement in commodity prices, we have elected to
accelerate our drilling program and now anticipate spending approximately $21
million on drilling in 2002, up from our original budget of $16 million. Given
our current activity, in which we have six wells drilling, we look forward to
reporting on what should be a very exciting second quarter for our
shareholders."
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EXHIBIT 99.1
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 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
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