Exihibit 99.1
BRIGHAM EXPLORATION ANNOUNCES APPLING DEEP FRIO FIELD DISCOVERY, OTHER
DISCOVERIES AND PROVIDES OPERATIONAL UPDATE
AUSTIN, Texas, Jan. 25 /PRNewswire-FirstCall/ -- Brigham Exploration
Company (Nasdaq: BEXP) today announced the discovery of the Appling Deep Frio
Field, with the successful completion of the Sartwelle #3 in Calhoun County,
Texas. Brigham also announced other discoveries, the plugging of its Sullivan A
#1 as a dry hole, and provided an operational update.
ONSHORE GULF COAST FRIO TREND
Bayou Bengal Project Sartwelle #3 Discovery -- The Sartwelle #3 was
recently completed to sales at an initial rate of approximately 1.9 Mmcf of
natural gas and 530 barrels of oil (5.1 Mmcfe) per day, with a flowing tubing
pressure of 4,490 psi. Brigham operated the Sartwelle #3 with a 75% working and
54% revenue interest, encountering approximately 82 feet of total apparent net
pay in the Upper and Lower Frio. The currently perforated intervals, at depths
of between 10,000 and 10,336 feet, cover approximately 32 feet of the apparent
net pay. The other intervals remain behind pipe for future completion.
The Sartwelle #3 was the first test on an approximately 1,400 acre
structure. The same complex in the shallow Frio section has produced
approximately 400 Bcfe, approximately 200 Bcfe of which was trapped against the
same key trapping fault as Brigham's targeted deeper sands. Brigham expects to
commence its first development well, the Appling #1, in March. Up to six wells
could be drilled to fully develop the field.
Bayou Bengal Project Trull M #1 Frio Discovery -- Brigham successfully
drilled and is currently completing the Trull M #1, which encountered
approximately 41 feet of total apparent net pay in the Upper Frio. The Company
retains a 75% working and 56% revenue interest in the Trull M #1. Depending on
success, one offset could be drilled to fully develop the field.
Unsuccessful Matagorda County Completion -- In Matagorda County, completion
attempts for the McKissick #1 were unsuccessful. Brigham operated the McKissick
#1 with a 50% working interest.
Commencement of First of Eight Planned 2005 High Potential Tests -- Brigham
is drilling the Wyse #1 at a current depth of approximately 5,200 feet. This
high reserve potential Lower Frio test will be drilled to a projected total
depth of 15,000 feet. Brigham operates the Wyse #1, which is located in
Matagorda County approximately seven miles from Brigham's previously discovered
Providence Field. The Company retains a 50% working interest in the well, with
results expected in March. With success, up to three offsets could be drilled.
The Wyse #1 is the first of eight high reserve potential wells Brigham plans to
commence in 2005, four of which are in the Frio.
Within three miles of its Appling Deep Field discovery and still in its
Bayou Bengal Project, Brigham plans to commence two other high reserve potential
exploration tests during 2005. In April, Brigham will commence the first, with
results expected in June. Later in the year, Brigham plans to commence a second
in the same area, the Bayou Bengal B-13. Both wells target large Lower Frio
structures with reserve potentials of over 50 Bcfe, directly on trend with
Brigham's Sartwelle #3 Appling Deep Field discovery. Brigham will operate and
retain 75% working interests in both wells.
Commencement of Bayou Bengal Bay Exploration and Development Program -- As
part of its Bayou Bengal 3-D project, Brigham has acquired approximately 2,285
gross acres of leasehold in an area that has produced approximately 500 Bcfe to
date. The targeted area was developed in the 1950s, prior to well-developed
natural gas markets and prior to sophisticated seismic imaging. Brigham's
proprietary 3-D seismic acquisition and the subsequent interpretation have
delineated 20 potential developmental and exploration drill sites, providing
both low risk reserve opportunities as well as higher risk and higher potential
reserve targets. Brigham operates and expects to retain a 75% working interest
in all the wells drilled in the area, with five tests planned during 2005.
Brigham is currently drilling the first of these, the State Tract 257 #1, at a
depth of approximately 2,100 feet. The State Tract 257 #1 will be directionally
drilled from dry land, targeting a Frio prospect in the Baywith a total depth
projected at 9,500 feet. Results are expected in March.
Bud Brigham, the Chairman, President and CEO stated, "Although we have
limited production history, we are very excited about our Sartwelle #3
discovery, which we believe sets up a potentially very extensive development
drilling program. Historically, field discoveries such as this have contributed
to meaningful surges in our production volumes and reserves, and this field
discovery has the potential to be the largest in our history. Limiting the
potential reservoir extent to the lowest known gas encountered in the well, we
internally estimate the reserves in the Sartwelle #3 fault block on the
structure at approximately 10 Bcfe. We internally estimate that the upside
potential for the entire closure, if it is filled to its structural spill point,
at approximately 80 Bcfe. Additional drilling, beginning in March, will
ultimately determine the volume of reserves recovered."
Bud Brigham further stated, "As evidenced by our Appling Deep Field
discovery, we're now beginning to benefit from our recent proprietary 3-D
seismic project acquisitions in the Frio. We've recently generated a number of
high quality and high reserve potential projects, which we operate with larger
than historical working interests. As a result, we've commenced the drilling of
the first of eight high reserve potential tests planned for 2005. We also
recently completed the acquisition of 158 square miles of proprietary 3-D
seismic data in our Alamo Project, and we're currently acquiring approximately
120 square miles of proprietary 3-D seismic data within our General Lee Project.
We operate both projects with 75% working interests, and expect them to add
additional high potential prospects to our existing inventory by mid-year."
ONSHORE GULF COAST VICKSBURG TREND
Unsuccessful Archangel Joint Venture Exploration Well -- Brigham recently
plugged and abandoned the Sullivan A #1, as a dry hole. The Sullivan A #1 was
drilled to a total depth of approximately 16,472 feet with several drilling
shows in the Lower Vicksburg. However, wireline logs and sidewall cores
indicated that, although the well encountered significant gross sand thickness,
the porosities and permeabilities were too low to make a commercial completion.
Other Vicksburg Drilling -- In its Home Run Field, Brigham is drilling its
13th well, the Palmer #10, at a current depth of approximately 7,900 feet.
Results are expected in March. In late February, Brigham plans to commence the
Sullivan C-29, its 14th Home Run Field well. Brigham expects to retain a 34%
working interest in both the Palmer #10 and the Sullivan C-29 development wells.
In April, Brigham expects to commence a development well in its Triple Crown
North joint venture, the Sullivan C #31, offsetting the recent Sullivan C-30
discovery. Brigham will operate the Sullivan C #31, retaining a 58% working
interest, with results expected by late June.
Bud Brigham stated, "We are very disappointed that the Sullivan A #1 test
at our Archangel joint venture was unsuccessful. Although we recognized that
there was significant reservoir risk due to the lack of well control in the
area, the size of the structure, and the associated reserve potential, were
extremely large. Given our success late in 2004 at Triple Crown North, we are
one out of two with our recent joint ventures in this trend, and we've now
completed 22 of 24 recent Vicksburg wells in this area. Given the impact that
higher risk but high reserve potential exploration wells in the Vicksburg can
have on our company, we expect to continue to drill high potential tests in this
play, the next of which we hope to commence in the second half of 2005."
ANADARKO BASIN GRANITE WASH TREND
Hemphill County, Texas Granite Wash Discovery -- Brigham has completed two
new Hobart Ranch Granite Wash wells, at initial rates of approximately
1.6 Mmcfe and 3.5 Mmcfe per day, respectively. Brigham operates both of these
wells, located in Brigham's contiguous 3,958 acre block, with 98% working
interests. Prior wells were completed at initial rates of approximately
1.0 Mmcfe per day. Brigham is also currently completing the Hobart 19-2,
which encountered approximately 114 feet of apparent net pay in the Granite
Wash. Brigham operates and retains a 49% working interest in the Hobart 19-2,
with completion to sales expected in the next few weeks. With continued
success, up to 90 potential development locations could be drilled to fully
develop Brigham's acreage.
Bud Brigham stated, "We are encouraged by the significantly higher
production rates achieved by our two most recent Hobart Ranch wells. If these
wells continue to perform strongly, we can quickly drill a number of high
interest offsets that could meaningfully impact our 2005 production volumes and
reserves."
ANADARKO SPRINGER CHANNEL TREND
Blaine County, Oklahoma Springer Discovery -- The Scheffler #1 is currently
being completed after encountering approximately 12 feet of apparent net pay in
the Springer aged Cunningham sand. Brigham retains a 26% working interest in the
Scheffler #1, which was drilled to a total depth of approximately 9,286 feet.
Completion to sales is expected by early February.
ANADARKO HUNTON TREND
High Potential 100% Working Interest Mills Ranch Field Well -- Brigham is
drilling the Mills Ranch #2-98 at a current depth of approximately 16,500 feet,
targeting various carbonate intervals between three currently producing wells.
Brigham believes that this structure also has substantial reserve potential in
the deeper Arbuckle formation, and plans to drill this well to the Arbuckle at a
depth of approximately 25,200 feet, with results expected late in the second
quarter of 2005.
OPERATIONAL STATISTICS
Brigham spud sixty wells in 2004, retaining an average working interest of
approximately 45%. Fifty-four of these wells have been or are currently being
completed, five have been plugged and one is currently drilling. Brigham's gross
and net completion rates in 2004 are 92% and 86%, respectively. Since the end of
2004, Brigham has commenced three wells, and expects to commence eight
additional wells by the end of the first quarter of 2005."
MANAGEMENT COMMENTS
Bud Brigham stated, "Looking back, our 2004 drilling program was below our
expectations, though that changed dramatically late in the year with our
discoveries at Triple Crown North and Appling Deep. Our first priority as we
began 2004 was to aggressively drill our proved undeveloped inventory in order
to convert our significant non-producing development inventory to production and
cash flow, and we did that. Unfortunately, along the way we had several proved
undeveloped tests, the most significant of which was our Mills Ranch #1-99S,
that found substantially smaller reserves than that reflected in our year-end
2003 reserve report. In addition, and in hindsight, due in part to this focus on
development drilling, we did not drill enough of our deep and growing high
potential prospect inventory. Over time, we believe that our Appling Deep
discovery, like our prior field discoveries, will demonstrate the value of our
high potential inventory. Given that our recent discoveries occurred so late in
the year, it's not clear the impact they will have on our year-end 2004
reserves."
Bud Brigham further stated, "We believe that production growth provides the
best proxy for measuring our success at growing this enterprise, and our 2004
production should be up about 15% relative to that of 2003. Further, our
historical surges in production and reserves were generated largely by our field
discoveries. Given our late year discoveries at Triple Crown North and Appling
Deep, we are very well positioned to accelerate our growth in production in
2005. Further, with more focus on our growing high potential exploration
inventory, we expect our eight high potential tests to generate additional field
discoveries during the course of the year."
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 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 of Finance & Investor Relations
(512) 427-3300
SOURCE Brigham Exploration Company
-0- 01/25/2005
/CONTACT: John Turner, Manager of Finance & Investor Relations of Brigham
Exploration Company, +1-512-427-3300/
/Web site: http://www.bexp3d.com /
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