Brigham Exploration Company (NASDAQ: BEXP) announced the completion
of three high rate Bakken wells, including the Clifford Bakke 26-35
#1H and the Abelmann 23-14 #1H at early 24-hour peak flow back
rates of approximately 5,061 and 4,169 barrels of oil equivalent,
respectively. In total, Brigham has completed 39 consecutive high
frac stage long lateral Bakken and Three Forks wells in North
Dakota with an average early 24-hour peak flow back rate of
approximately 2,777 barrels of oil equivalent. Brigham also
provided an update on its drilling and completion activities in the
Williston Basin.
Ross Project Area Update
In Mountrail County, North Dakota, Brigham announced the
completion of the Clifford Bakke 26-35 #1H, which was completed
with 38 fracture stimulation stages, at an early 24-hour peak flow
back rate of approximately 5,061 barrels of oil equivalent (4,438
barrels of oil and 3.73 MMcf). The Clifford Bakke 26-35 #1H is
located two miles to the east of the Anderson 28-33 #1H, which was
completed in August 2009 with 24 fracture stimulation stages at an
early 24-hour peak flow back rate of 2,154 barrels of oil
equivalent. Based on publicly available information, the Clifford
Bakke 26-35 #1H appears to represent the second highest initial
production rate well in the Williston Basin and Brigham now has the
first, second, third and fifth highest initial production rate
wells in the basin. To date, Brigham has completed eight Ross
project area long lateral Bakken wells at an average early 24-hour
peak flow back rate of approximately 3,988 barrels of oil
equivalent. Brigham maintains an approximate 43% working interest
in the Clifford Bakke 26-35#1H.
Rough Rider Project Area Update
Record Rough Rider Bakken Completion -- In McKenzie County,
North Dakota, Brigham announced the completion of the Abelmann
23-14 #1H at an early 24-hour peak flow back rate of 4,169 barrels
of oil equivalent (3,745 barrels of oil and 2.55 MMcf). The
Abelmann 23-14 #1H was completed with 33 frac stages and, based on
publicly available information, appears to represent a record
initial production rate well west of the Nesson Anticline. Brigham
maintains an approximate 53% working interest in the Abelmann 23-14
#1H.
Rough Rider Increased Density Pilot Project -- In Williams
County, North Dakota, Brigham is in the process of flowing back the
Brad Olson 9-16 #2H, which is being completed with 32 fracture
stimulation stages and represents Brigham's 40th long lateral high
frac stage completion. Current flow back results indicate the early
24-hour peak flow back rate will be within the range of early
24-hour peak flow back rates for other Brigham operated Rough Rider
wells. Brigham hopes to be able to provide an early 24-hour peak
flow back rate on its 3rd quarter 2010 conference call tomorrow
morning. Brigham maintains an approximate 56% working interest in
the Brad Olson 9-16 #2H, with U.S. Energy Corp. (NASDAQ: USEG) as a
working interest participant.
The Brad Olson 9-16 #2H represents Brigham's first infill test
west of the Nesson Anticline. By monitoring frac wing performance
of the well with a deployed micro-seismic array and monitoring
continued well performance, Brigham hopes to delineate the
potential to drill incremental infill wells beyond the currently
envisioned three wells per spacing unit. If results indicate that
four to six wells may be required to effectively drain spacing
units, Brigham's de-risked Rough Rider drilling inventory could
increase by approximately 120 to 360 net locations, which would
represent a significant net asset value enhancement event. Subject
to results, Brigham plans to commence additional increased density
pilots in Rough Rider and Ross in the first half 2011, including
four well density units.
Additional Rough Rider Completion -- Also in Williams County,
North Dakota, Brigham announced the completion of the Smith Farm
23-14 #1H, which was completed with 32 fracture stimulation stages
at an early 24-hour peak flow back rate of 2,417 barrels of oil
equivalent. Brigham maintains approximate 82% working interest in
the Smith Farm 23-14 #1H.
Williston Basin Drilling and Completion Update
Brigham's accelerated development of its acreage in North Dakota
and Montana is proceeding with three operated rigs drilling in
Rough Rider, two operated rigs drilling in Ross and one operated
rig drilling in Roosevelt County, Montana. A seventh operated rig
is expected to arrive in mid-November, approximately two months
ahead of schedule. Brigham's eighth operated rig is currently
expected to arrive in May 2011.
Brigham currently has one well flowing back, two wells fracing
and nine wells waiting on completion. In the first quarter 2011,
Brigham expects to add additional fracture stimulation capacity
thereby providing access to two fully dedicated frac crews focused
on completing Brigham operated horizontal wells in the basin. At
that time, Brigham estimates that approximately eight wells per
month will be fracture stimulated and brought on line to
production.
Management Comments
Bud Brigham, the Chairman, President and CEO, commented, "We've
now drilled 39 consecutive high frac stage long lateral completions
in North Dakota averaging 2,777 barrels of oil equivalent over an
early 24-hour peak flow back period. The outperformance of our
wells once again resulted in our exceeding the high end of our
production volume guidance, and we also achieved record quarterly
production volumes of 8,509 barrels of oil equivalent per day
during the third quarter. Furthermore, during the third quarter,
our high value oil production volumes continued to grow and
represented approximately 75% of our total production volumes and
87% of our pre-hedge revenues, which drove our revenue and cash
flow to record levels during the quarter. We're even more excited
about the potential for strong fourth quarter production volume
growth given the three wells we recently brought on line and our
plans to complete approximately six wells per month in the
Williston Basin during the quarter. We currently anticipate
achieving between 20% and 27% sequential production volume growth
during the fourth quarter and therefore expect our volumes to
average between 10,200 to 10,800 barrels of oil equivalent per
day."
Bud Brigham continued, "We've moved an operated rig into Montana
and are currently drilling the Swindle 9-16 #1H in Roosevelt County
about seven miles east of our Rogney well. We will subsequently
move the rig to Richland County, Montana to drill the Johnson 30-19
#1H, which is approximately seven to eight miles northwest of our
Sedlacek Trust 33-4 #1H. We're excited about the opportunity to
complete two additional Montana wells early in 2011 in an effort to
further de-risk portions of our approximately 105,400 net acres in
the area."
Bud Brigham concluded, "Our Brad Olson 9-16 #2H and #3H, which
will be completed later this year, could provide yet another
potential catalyst for net asset value growth. As we've increased
the number of frac stages while pumping the same amount of ceramic
proppant, we potentially have decreased the length of our frac
wings and increased our drainage efficiency along the length of the
wellbore. By analyzing the results of our deployed micro-seismic
array and ongoing monitoring of well performance, we hope to
determine whether we may have the opportunity to drill more than
our currently planned three wells per spacing unit. If we can drill
four to six wells per spacing unit, in our Rough Rider area alone
our de-risked development drilling inventory could increase by
approximately 120 to 360 net wells, which would represent a
significant net asset value enhancement."
Conference Call Information
Our management will host a conference call to discuss
operational and financial results for the third quarter 2010 with
investors, analysts and other interested parties on Tuesday,
November 2, at 11:00 a.m. Eastern Time. To participate in the call,
participants within the U.S. please dial 888-713-4218 and
participants outside the U.S. please dial 617-213-4870. The
participant passcode for the call is 21582582. Participants may
pre-register for the call at
https://cossprereg.btci.com/prereg/key.process?key=PVNELWLGV.
Pre-registrants will be issued a pin number to use when dialing
into the live call which will provide quick access to the
conference. A telephone recording of the conference call will be
available approximately two hours after the call is completed
through 12:00 p.m. Eastern Time on Tuesday, November 9, 2010. To
access the recording, domestic callers dial 888-286-8010 and
international callers dial 617-801-6888. The passcode for the
conference call playback is 42559492. In addition, a live and
archived web cast of the conference call will be available over the
Internet at either www.bexp3d.com or www.streetevents.com.
About Brigham Exploration
Brigham Exploration Company is an independent exploration,
development and production company that utilizes advanced
exploration, drilling and completion technologies to systematically
explore for, develop and produce domestic onshore oil and natural
gas reserves. 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 federal securities laws.
Important factors that could cause our actual results to differ
materially from those contained in the forward-looking statements
early initial production rates which decline steeply over the early
life of wells, particularly our Williston basin horizontal wells
for which we estimate the average monthly production rates may
decline by approximately 70% in the first twelve months of
production, our growth strategies, our ability to successfully and
economically explore for and develop oil and gas resources,
anticipated trends in our business, our liquidity and ability to
finance our exploration and development activities, market
conditions in the oil and gas industry, our ability to make and
integrate acquisitions, the impact of governmental regulation and
other risks more fully described in the company's filings with the
Securities and Exchange Commission. Forward-looking statements are
typically identified by use of terms such as "may," "will,"
"expect," "anticipate," "estimate" and similar words, although some
forward-looking statements may be expressed differently. 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: Rob Roosa Finance Manager (512) 427-3300
Brigham Exploration (MM) (NASDAQ:BEXP)
Historical Stock Chart
From Apr 2024 to May 2024
Brigham Exploration (MM) (NASDAQ:BEXP)
Historical Stock Chart
From May 2023 to May 2024