Exhibit 99.2
BRIGHAM EXPLORATION ANNOUNCES FY 2005 CAPITAL SPENDING PLAN
AUSTIN, Texas, March 2 /PRNewswire-FirstCall/ -- Brigham Exploration
Company (Nasdaq: BEXP) announced today the approval by its board of directors of
a capital expenditure plan for 2005. Brigham plans to spend approximately $90.2
million on capital expenditures, an increase of approximately 4% relative to
2004.
FY 2005 CAPITAL SPENDING PLAN
We currently plan to spud 37 new wells in 2005 with an average working
interest of 55%. Our total capital budget for 2005 represents an approximate
increase of 4% over the amount we spent in 2004. Approximately 78% or $70.3
million of the 2005 capital budget will fund drilling expenditures, representing
a 3% increase over 2004 drilling expenditures. Of the budgeted 2005 drilling
expenditures, approximately 49% are allocated to drilling exploration wells and
51% is allocated to development drilling activities. In 2004 we spent
approximately 30% of our total drilling expenditures on exploration wells and
70% on development drilling activities. Additionally, we estimate that during
2005 we will spend approximately $26.5 million in drilling expenditures to
develop our proved undeveloped reserves at December 31, 2004, compared to
approximately $34.7 spent in 2004. Our budgeted capital expenditure program for
2005 is as follows:
(In Thousands)
-------------
Drilling $ 70,308
Net land and G&G 13,065
Capitalized interest and G&A 6,184
Other non-oil & gas 615
Total $ 90,172
The amount and allocation of actual capital expenditures will depend upon a
number of factors, including the impact of oil and gas prices, variances in
drilling and service costs, the timing of our drilling wells and variances in
forecasted production.
ONSHORE GULF COAST
We currently plan to spend approximately $43.8 million, or 63% of our total
budgeted drilling expenditures for 2005 in our onshore Gulf Coast province. This
drilling capital will be allocated to the drilling of 17 wells with an average
working interest of 65%, to the drilling and completion of wells that were
drilling at December 31, 2004 and other various development activities.
Approximately 61% of the drilling capital budgeted for our onshore Texas
Gulf Coast province is allocated to various development activities which
includes the drilling of 10 (average net working interest of 65%) development
wells. This capital is focused primarily on developing our Home Run and Triple
Crown Vicksburg field discoveries, as well as the recent Appling Deep Frio field
discovery.
The remaining 39% of our drilling capital budgeted to our onshore Texas
Gulf Coast province will be allocated to the drilling of seven (average net
working interest of 64%) exploration wells in our onshore Gulf Coast province.
For 2005, six of the eight higher potential and higher risk exploration tests
that we plan to drill are located in our onshore Gulf Coast province. We will
retain an average working interest of 67% in these tests, two of which are
currently drilling.
We also plan to spend approximately $9 million on land and seismic
activities in our onshore Texas Gulf Coast province during 2005.
ANADARKO BASIN
We currently plan to spend approximately $23.5 million, or 33% of our total
budgeted drilling expenditures for 2005 in our Anadarko Basin province. This
drilling capital will be allocated to the drilling of 17 wells with an average
working interest of 40%, to the drilling and completion of wells that were
drilling at December 31, 2004 and other various development activities.
Approximately 37% of the drilling capital budgeted for our Anadarko Basin
province is allocated to various development activities which includes the
drilling of 10 (37% net working interest) development wells. Our development
drilling activities will include the drilling of six Granite Wash wells in
Hemphill County Texas. We will operate four of these wells with an average
working interest of 52% and will participate in the drilling of the other two
Granite Wash wells with an average working interest of 3.2%. We also plan to
drill three Springer Bar wells with an average working interest of 24% and one
Springer Channel well with a working interest of 80%.
The remaining 63% of our drilling capital budgeted for our Anadarko Basin
province will be allocated to the drilling of six (average net working interest
of 53%) exploration wells and the continued drilling and completion of a high
potential exploration well that was drilling at December 31, 2004. Two of these
wells, one new well and one well that was drilling at December 31, 2004, are
among the eight higher potential and higher risk exploration tests referred to
above. The first of these two higher potential tests is the Mills Ranch #2-98,
which commenced drilling in 2004 and was drilling at December 31, 2004. We own a
100% working interest in the Mills Ranch #2-98, which is targeting the Arbuckle
formation and various other shallower formations. The second high reserve
potential test currently planned for 2005 is the Mountain Front #1. We will
operate the Mountain Front #1 with a 100% working interest. The Mountain Front
#1 is a reentry of an existing well, which will be directionally drilled to the
Hunton and Arbuckle formations. The remaining five new exploration wells that we
plan to drill in our Anadarko Basin province in 2005 will be Springer Channel
wells where we will retain an average working interest of 43%.
We also plan to spend approximately $3.5 million on land and seismic
activities in our Anadarko Basin province during 2005.
WEST TEXAS
We currently plan to spend approximately $3 million, or 4% of our 2005
budgeted drilling expenditures in our West Texas province. This drilling capital
will be allocated to the drilling of three exploration wells with an average
working interest of 82% and to various development activities.
We also plan to spend approximately $600,000 on land and seismic activities
in our West Texas province during 2005.
Bud Brigham, the Chairman and CEO stated, "In 2004 we were very intently
focused on our development drilling, with approximately 70% of our capital going
to development drilling. In addition, just over 50% of our drilling capital was
invested in drilling proved undeveloped locations. In 2005, we will continue to
aggressively drill in our deep developmental inventory, with just over 50% of
our capital directed towards development drilling. However, we believe our 2005
program provides better balance between development and exploration.
Importantly, 38% of our drilling capital is directed to proved undeveloped
locations, thus 62% is directed towards the discovery of new reserves. Further,
in 2005 relative to 2004, we are much more focused on our high potential
exploration program, which has historically generated our field discoveries and
subsequent surges in production and reserves. This year, approximately 37% of
our drilling capital will go to the drilling of eight high potential wells,
exposing us to an unrisked reserve potential of approximately 376 Bcfe."
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 http://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- 03/02/2005
/CONTACT: John Turner, Manager of Finance & Investor Relations of Brigham
Exploration Company, +1-512-427-3300/
/First Call Analyst: /
/FCMN Contact: jturner@bexp3d.com /
/Web site: http://www.bexp3d.com/