EXHIBIT 99.1
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BRIGHAM NEWS RELEASE
EXPLORATION COMPANY FOR IMMEDIATE RELEASE
BRIGHAM EXPLORATION PROVIDES ITS Q2 2002 OPERATIONAL UPDATE
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Austin, TX - August 5, 2002 -- Brigham Exploration Company (NASDAQ:BEXP)
today provided an operational update for the second quarter 2002.
GULF COAST FRIO TREND
Providence Field - The Burkhart #1R, the confirmation well for the field,
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began producing in the second week of July at approximately 8.7 MMcf of natural
gas and 1,500 barrels of oil (17.7 MMcfe) per day, or 5.5 MMcfe net to Brigham's
31% revenue interest. Currently, the Burkhart #1R is producing approximately
10.5 MMcf of natural gas and 1,780 barrels of oil (21.2 MMcfe) per day, or 6.6
MMcfe per day net to Brigham's revenue interest. Upon payout of drilling and
completion costs, which is expected to occur by year-end, Brigham's ownership
reverts to a 22% revenue interest.
The Staubach #1, the discovery well for the field, began producing during
February 2002 and paid out its drilling and completion costs in May. To date the
well has produced approximately .75 Bcf of natural gas and 322,000 barrels of
oil (2.7 Bcfe). The Staubach #1 is currently producing approximately 5.0 MMcf of
natural gas and 2,000 barrels of oil (17.0 MMcfe) per day, or approximately 4.4
MMcfe per day net to Brigham's 27% revenue interest.
In early July, Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) began drilling the
Huebner #1, the second offset to the Staubach #1, to test the northern end of
the approximately 800 acre structure. During the first two weeks of drilling,
stuck drill pipe necessitated a sidetrack operation. The well has been
sidetracked and is currently drilling at a depth of approximately 6,500 feet.
The Huebner #1 is expected to develop the currently producing Staubach and
Burkhart pay intervals. In addition, plans include additional drilling to test
deeper potential pay sands, with results expected by September.
Brigham expects to drill the third and fourth development wells in the
field prior to year-end, and anticipates drilling a total of at least five wells
to fully develop the field.
Also within the Frio trend, Brigham will operate and retain a 38% working
interest in an exploratory Frio bright spot test that should commence drilling
within the next two weeks. Results are expected by late September.
GULF COAST VICKSBURG TREND
Home Run & Triple Crown Fields - Brigham operates and retains a 34% working
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interest in the Palmer #5R, its seventh well in its Home Run Field, which is
currently drilling at a depth of approximately 11,300 feet. If successful,
completion operations on the Palmer #5R should commence in late August.
Also in Home Run, Brigham has commenced sidetracking operations on the
previously drilled Palmer #3. The Company retains a 34% working interest in the
Palmer #3ST, and expects results by early October.
Brigham plans to drill its next development well in the Triple Crown Field
in the fourth quarter of 2002 or in the first quarter of 2003.
Adjacent Fault Blocks - Brigham plans to spud the Floyd #1 later this
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month. The Floyd #1 will test one of several fault blocks adjacent to its Home
Run and Triple Crown Fields. The "Floyd" fault block lies between the Triple
Crown and Home Run Fields, and the Floyd #1 should test Upper and Lower
Vicksburg intervals that are now producing in those fields. Three Home Run
Field wells penetrated the Floyd fault block in the Upper Vicksburg 9800' sand
prior to crossing a fault and drilling into the Home Run Field reservoirs, and
all three wells are productive in the Upper Vicksburg 9800' sand. The
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EXHIBIT 99.1
Company will retain a 34% working and 25% net revenue interest in the test of
the Floyd fault block, which has an estimated reserve potential of approximately
50 Bcfe. Results are expected by November.
GULF COAST WILCOX TREND
Dinn Ranch Field - As reported by EOG Resources, Inc. (NYSE:EOG) and EEX
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Corporation (NYSE: EEX), the two operators are developing a potentially
substantial field discovery in the deep Wilcox trend. As a result, two wells
with reported production capacities in excess of 30 MMcf of natural gas per day
per well have been producing to sales with additional production capacity
anticipated in September. Further, three Dinn Ranch Field development wells were
completing, with one well currently drilling.
As per prior press releases, Brigham retains an overriding royalty
interest, which converts into a 12.5% and 25% working interest at 100% and 200%
payouts respectively, in one of the wells currently completing. That well, the
EEX operated Lopez Mineral Trust #1, encountered approximately 300 feet of
apparent pay. Although completion operations have been delayed, it is currently
anticipated that production should commence in August or September. Brigham
anticipates an additional development well to begin drilling during the third
quarter, in which Brigham will retain the same reversionary working interests as
the Lopez Mineral Trust #1. If successful, another development well could begin
drilling late in the year, and Brigham would retain a 25% ground floor working
interest in this well.
ANADARKO BASIN HUNTON TREND
Mills Ranch Field Development Well - On July 31st Brigham spud its first
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offset to the Mills Ranch #1. Brigham directionally drilled the Mills Ranch #1
to a total depth of over 25,000 feet in December 2000. The Mills Ranch #1
encountered approximately 1,200 feet of gross pay and 240 feet of calculated
true vertical net pay in three Hunton intervals. From January 2001 to mid-year
2002 the Mills Ranch #1 produced approximately 2.6 Bcfe, and was producing
approximately 4.0 MMcfe per day on June 30, 2002.
Brigham operates and retains a 64% working interest in the Mills Ranch #2,
and anticipates testing the Hunton pay intervals approximately 500 feet high to
the discovery well. Brigham expects the Mills Ranch #2 to test an additional
Hunton pay interval, the most prolific producing interval in the area. The Mills
Ranch #2 should reach total depth near year-end 2002. If successful, at least
one additional development well could be required to fully develop the field.
FIRST HALF 2002 OPERATIONAL STATISTICS
Brigham spud 14 wells during the first six months of 2002 in which it
retained an average working interest of 34%. Ten of these wells have been
completed and three are currently drilling. Brigham has achieved a gross
completion rate of 91% and a net completion rate of 90% thus far in its 2002
drilling program. Production volumes averaged 27.3 MMcfe per day for the second
quarter 2002, up 8% from 25.3 MMcfe per day in the first quarter 2002, despite
no impact from the recent Burkhart #1R completion.
MANAGEMENT COMMENTS
Bud Brigham, the Company's Chairman, CEO and President, stated, "We're
pleased with our drilling results thus far in 2002. Over the last several years,
we've completed 33 wells in 36 recent attempts in our five focus plays. The big
news currently is the very exciting activity at our Providence Field, which is a
bad news/good news story. The bad news was a delay in initial production. We
had originally expected the Burkhart #1R to begin producing mid second quarter
rather than early in the third quarter. The good news is that it's producing at
higher than anticipated rates, approximately 21.2 MMcfe per day, or 6.6 MMcfe
per day net to our Company. However, due to the delays in completing the well,
our second quarter daily production volumes averaged 27.3 MMcfe, instead of
approximately 30 MMcfe."
Mr. Brigham further stated, "The fundamentals of our growth in production
volumes for the second half of 2002 are very strong. For example, the first two
Providence Field wells on line are producing approximately 11 MMcfe per day for
our Company, and we now expect to drill at least two additional wells there by
year-end. We expect additional growth in production from the rest of our
accelerated drilling program, including our Palmer #5 and Palmer #3ST
development wells, our Floyd fault block test, our Springer wells currently
completing and drilling, and our Frio and West Texas Horseshoe Atoll Trend
exploration wells. Our Floyd fault block test, which should spud in the next 30
days, and our currently drilling Mills Ranch Hunton
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EXHIBIT 99.1
development well in the Anadarko Basin, should provide exciting and potentially
substantial reserve impact for our shareholders in 2002."
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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