Exhibit 99.1
BRIGHAM EXPLORATION ANNOUNCES BAKKEN PROJECT, APPARENT LOWER FRIO DISCOVERY
AND PROVIDES OPERATIONAL UPDATE
AUSTIN, Texas, Nov. 2 /PRNewswire-FirstCall/ -- Brigham Exploration Company
(Nasdaq: BEXP) today announced the acquisition of approximately 46,000 net acres
in the Bakken play of North Dakota, significantly increasing its acreage
position in non-conventional oil and gas plays to complement its ongoing
successful conventional exploration and development program. Brigham also
announced another apparent discovery in the Lower Frio with its first test in
its Alamo joint venture, the Imhoff #1.
North Dakota and Montana Bakken Play -- Brigham has closed on the $4.6
million acquisition of approximately 46,000 net acres in the Bakken play located
in 126 sections in northwestern North Dakota. Brigham has acquired a 100%
working interest in the Bakken formation within the acreage, and with success,
between 63 and 126 wells could be drilled to fully develop the acreage. Depth of
the Bakken objective in the area is approximately 11,000 feet, with horizontal
lateral extensions of 4,000 to 9,000 feet estimated to cost between $3.5 and
$4.0 million.
This is an extension of ongoing Bakken activity in Richland County, Montana,
approximately 20 to 40 miles to the west. In this area, 227 Bakken wells in a
324 square mile area have generated average initial production rates of 345
barrels of oil per day, average cumulative production to date of 112,000 barrels
of oil per well, and estimated ultimate recoveries of approximately 376,000
barrels of oil per well.
Bud Brigham, the Chairman, President and CEO stated, "Given current
commodity prices and the associated margins, combined with our significant
recent drilling successes, we believe that our conventional program is
generating strong returns on our drilling investments. Furthermore, the current
commodity price outlook, together with technological advancements in drilling
and completions, have also provided us with the opportunity to complement our
successful conventional program by adding a substantial inventory of potentially
low risk and predictable drilling projects. Earlier this year we undertook an
internal initiative to evaluate numerous emerging non-conventional domestic
plays, with the goal of building a diverse and attractive inventory of
non-conventional projects to balance out our very successful, but by its nature
sometimes less predictable, conventional program."
Brigham further stated, "To date we've assembled acreage covering up to 239
potential drilling locations in non-conventional plays. Of these, we previously
announced plans to commence drilling two additional Granite Wash wells later
this year or early in 2006, and we intend to commence our first Bakken well as
early as late this year. For 2006 and beyond, we expect our non-conventional
drilling program to be incremental to our growing investments in our successful
conventional program, possibly representing up to 25% of our 2006 capital
expenditures."
Approximate Potential
Non-Conventional Play Basin Acreage Est. Spacing Locations
--------------------- ---------- ------------ ------------ --------------
Granite Wash Anadarko 4,000 acres 40 acres 82 gross/57
net
Barnett Shale Fort Worth 5,000 acres 160 acres 31 gross/31
net
Bakken Williston 46,000 acres 640 acres 126 gross/72
net
Apparent Lower Frio Discovery -- Brigham is currently completing the Imhoff
#1, Brigham's first test in the company's Alamo Project. Brigham operates and
retains a 75% working interest in the Imhoff #1, with Sempra Energy Production
Company as a participant with a 25% working interest. Based on wireline log
analysis, the Imhoff #1 encountered approximately 24 feet of apparent pay in
various Lower Frio intervals. With a successful completion, one to two offsets
could be drilled to fully develop the discovery. Brigham is currently utilizing
this same drilling rig to commence another high reserve potential test in its
Alamo Project, the B.K. Dillard #1. Results for the B.K. Dillard #1 are expected
in December.
SIGNIFICANT WELLS RECENTLY COMPLETED, COMPLETING, DRILLING OR PREPARING TO
DRILL
Well Objective Category WI% NRI Status / Comments
------------------ --------- -------- ---- --- --------------------------
Imhoff #1 Lwr Frio Exp 75% 56% Encountered approximately
24' of apparent net pay,
currently completing
Wright #2 Springer Exp 100% 75% Springer produced 1.5
Mmcfed after stimulation,
hooking up to sales, 33'
of shallower apparent pay
behind pipe
Hajek #1 Springer Exp 28% 23% Completing, encountered
27' apparent Springer pay
Fondren #1 Lwr Frio Dev 72% 59% Noncommercial, temporarily
abandoned, possible future
sidetrack
Grisham #1 Lwr Frio Dev 50% 40% Approximately 94' of
apparent Lower Frio pay;
due to gas flow into well
bore, additional cementing
operations delayed
completion to sales
Palmer 3S #2 Vicksburg Dev 34% 29% Sidetrack currently
drilling at 10,700',
results expected in
November
B.K. Dillard #1 Lwr Frio Exp 75% 56% Commencing high reserve
potential Alamo Project
well in early November
State Tract 266 #1 Middle Frio Dev 75% 56% Expect to commence in
December, offsetting
shallow pays in S.T. 254
#1 & B #13
Hobart 59-2 Gr. Wash Dev 99% 80% Expect to commence in Q4
of 2005 or early in Q1 of
2006
House #1 Springer Exp 28% 23% Moderate risk/potential
well currently commencing
2005 OPERATIONAL STATISTICS
Brigham has spud 28 wells thus far in 2005, retaining an average working
interest of approximately 56%. Twenty-five of these wells have been or are
currently being completed, one has been plugged and two are currently drilling.
Including the Mills Ranch #2-98, which began drilling in 2004 and was recently
completed, Brigham's gross and net completion rate thus far in 2005 are 96% and
95% respectively.
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, Director of Finance & Business Development
(512) 427-3300
SOURCE Brigham Exploration Company
-0- 11/02/2005
/CONTACT: John Turner, Director of Finance & Business Development of
Brigham Exploration Company, +1-512-427-3300/
/Web site: http://www.bexp3d.com /