Brigham Exploration Provides Operational Update
21 September 2006 - 9:00PM
PR Newswire (US)
AUSTIN, Texas, Sept. 21 /PRNewswire-FirstCall/ -- Brigham
Exploration Company (NASDAQ:BEXP) announced a significant Vicksburg
completion, that the Cotten Land #1 was in the final stages of
being completed to sales, and an initial flow rate prior to
stimulation for its State Tract 109 #1 discovery. Brigham also
announced two apparent West Texas oil discoveries, continued growth
in its acreage position in the Williston Basin Bakken play, and
updated other operational activity. SIGNIFICANT WELLS RECENTLY
COMPLETED, COMPLETING, DRILLING OR PREPARING TO DRILL Development
Wells Objective Category WI% NRI Status / Comments Sullivan F-33
Vicksburg Dev 100% 76% Initial production from deeper Dawson sand @
~9.5 MMcfed with strong pressures Sullivan C-33 Vicksburg Dev 100%
76% Drilling potential high production rate Floyd Field development
well @ 2,030' Mills Ranch 98 #2 Hunton Dev 100% 75% Operations
progressing, expect to be back on line soon Mills Ranch 96 #1
Hunton Dev 68% 56% Drilling @ 24,134' in Hunton with gas shows,
results expected late October Exploration Wells Objective Category
WI% NRI Status / Comments Cotten Land #1 Oligocene Exp 41% 29%
Currently completing to sales, expect 8 to 15 MMcfed early rate
Williams Land #1 Planulina Exp 59% 43% Preparing to commence high
potential S. LA well, results expected in November State Tract 109
#1 Lwr Frio Exp 75% 55% Completed 36' of pay in Turtle Ridge
discovery @ ~2.4 MMcfed, plan frac pac Green Ranch #1 Lwr Frio Exp
75% 56% Preparing to commence high potential well, results expected
in December 20 Mi. Creek Fed. #2 Muddy/Dakota Exp 38% 30% Drilling
9,800' Niobrara Co., WY Conventional well @ 9,522', results in
October Kinder Canal Co. #1 Yegua,etc. Exp 33% 25% Unsuccessful
attempted completion of S. Louisiana test (Plassey Prospect) John
Foley #1 Yegua,etc. Exp 33% 24% Drilling S. LA multi pay bright
spot well (formerly C. Broadcasting #1) @ 3,654' Pink Floyd Canyon
Exp 50% 40% Completing after testing @ ~192 Bopd from 52' pay,
likely to produce 80-120 Bopd Pink Champagne Canyon Exp 39% 32%
Apparent discovery completing after encountering approximately 28'
apparent pay Resource Plays Objective Category WI% NRI Status /
Comments Field 18-19 1-H Bakken Exp 100% 79% Initially 200 Bopd
after pump installation, currently 120 Bo & 132 Mcfg per day
Erickson 8-17 1-H Bakken Exp 100% 79% Completing after good shows,
results early October Mracheck 15-22 1-H Bakken Exp 100% 77%
Drilling horizontal @ 17,300' with good shows, results late October
Krejci Fed. #3-29H Mowry Exp 50% 40% Completing horizontal test
after encountering encouraging drilling shows Rincon Fed. 1-12H
Mowry Exp 50% 40% Preparing to commence 2nd 2006 horizontal Mowry
test, results in December Gulf Coast Vicksburg Development Triple
Crown Field 100% WI Well - The Sullivan F-33 was recently completed
from the Dawson sand at an early rate of approximately 8.7 MMcf of
natural gas and 140 barrels of oil (9.5 MMcfe) per day, with very
strong flowing casing pressures. This is the first well to be
completed to sales in the Dawson sand, the deepest of three
apparent productive intervals encountered by the well. The Sullivan
F-33 also has apparent pay in the shallower Loma Blanca interval,
and approximately 63 feet of apparent pay in the shallowest 9800'
sand objective. The shallower intervals will likely be fracture
stimulated and commingled into the production stream at a later
date. Brigham has retained a 100% working interest in the Sullivan
F-33, subject to a 16.5% back-in after payout, and then an
additional 16.5% back-in after 200% payout. Floyd Fault Block Field
Update - The Sullivan #10 experienced a down hole operational
problem, and as a result was briefly off line in late August. The
operator now has the well back on line producing at a recent rate
of approximately 1.6 MMcfe per day, with plans to increase the rate
gradually to 2.7 MMcfe per day. Brigham retains a 34% working
interest in the Sullivan #10, which commenced producing in April
2004 at a rate of approximately 15 MMcfe per day, has produced
approximately 7.6 Bcfe to date, and prior to the problem was
producing approximately 6.6 MMcfe per day. Brigham recently
commenced the Sullivan C-33, which is currently drilling at a depth
of approximately 2,030 feet. Brigham retains a 100% working
interest in the Sullivan C-33, subject to a 33% back-in after
payout. Results are expected in November. Bud Brigham the Chairman,
President and CEO stated, "We're very excited about the very strong
early production provided by our Dawson sand completion in the
Sullivan F-33. This is the first well we've completed to sales from
this interval. Provided it continues to perform, this discovery
would likely add additional developmental potential to the field.
We're also pleased to have commenced the Sullivan C-33, which given
our working interest could have a material impact on our production
volumes as we exit the year." Gulf Coast Louisiana Miocene Trend
Bayou Postillion Project, Iberia Parish - The Cotten Land Corp. #1
is currently in the final stages of being completed to sales.
Brigham previously production tested the well from one of two
apparently productive sands at approximately 10.1 MMcfed. Brigham
expects the well to commence producing by early next week at an
initial rate of between 8 and 15 MMcfe per day. Penn Virginia
(NYSE:PVA) also retains a significant working interest in the
Cotten Land #1 well. Brigham currently expects to retain an
approximate 38% working interest in one to two additional
offsetting wells at what appears to be structurally high locations,
which Brigham would likely operate and drill in early 2007. Gulf
Coast Frio Exploration Turtle Ridge Lower Frio Exploration
Discovery - Brigham recently production tested the State Tract 109
#1 from approximately 36 feet of apparent pay in the Lower Frio at
an early rate of approximately 1.3 MMcf of natural gas, 194 barrels
of condensate (2.5 MMcfe) and 22 barrels of water per day. Given
some associated sand production with a decline in the flowing
pressures and production rate during the test, Brigham plans to
utilize a "frac pac" completion to limit the sand production and
possibly enhance the productivity of the well. An additional 21
feet of apparent net pay remains behind pipe for future completion.
The State Tract 109 #1 tested the Turtle Ridge Prospect, a Lower
Frio structure covering approximately 500 acres. Brigham operates
the State Tract 109 #1 with a 75% working interest, with Royale
Energy, Inc. (NASDAQ:ROYL) as a participant with a 25% working
interest. Anadarko Basin Hunton Development Mills Ranch Field
Update - The Mills Ranch 96 #1 is currently drilling at a depth of
approximately 24,134 feet, apparently in the primary objective
Hunton formation, with good drilling shows. Brigham operates the
Mills Ranch 96 #1 with a 68% working and 56% net revenue interest,
with Panhandle Royalty (NASDAQ:PHX) participating with a 10%
working and 13% net revenue interest. Results are expected in
October. Operations have progressed, and Brigham expects to bring
the Mills Ranch 98 #2 back on line producing to sales within the
next two weeks. A tubing leak became apparent in June 2006, and
prior to the mechanical problem the Mills Ranch 98 #2 was producing
approximately 3.3 MMcfe per day. Also in the Mills Ranch Field, the
Mills Ranch 99 #1S2 continues to produce, at recent rates of 1.9 to
2.5 MMcfe per day. Bud Brigham stated, "We're pleased with our
operational progress thus far on the Mills Ranch 98 #2, and expect
to have the well back on line producing to sales soon. We're also
pleased that the Mills Ranch 99 #1S2 has continued to perform. At
this point it appears the reserves are more extensive than that
encountered by the previously drilled Mills Ranch 99 #1S borehole.
We're also very encouraged by the good shows and pressures
indicated by our Hunton drilling in the Mills Ranch 96 #1 thus
far." Resource Plays North Dakota & Montana Bakken Wells -
Brigham successfully installed tubing and a rod pump on its Field
18-19 1-H, which subsequently produced at rates as high as 200
barrels of oil per day, and is currently producing approximately
120 barrels of oil, 132 Mcf of natural gas and 33 barrels of water
per day. The water rate has steadily declined over time. Prior to
installation of the tubing and rod pump the well was producing
approximately 100 barrels of oil per day, though the production was
being inhibited by fluid loading. Brigham is also completing its
second horizontal Bakken well, the Erickson 8-17 1-H, which
encountered good drilling shows. Brigham plans to fracture
stimulate this well later this month, with results expected by
early October. In addition, Brigham is currently drilling its third
Bakken well, the Mracheck 15-22 1-H, which like the two prior wells
has encountered good drilling shows thus far. Brigham is releasing
the drilling rig utilized for its Bakken wells for two to three
wells to be drilled by another operator, after which Brigham
expects to commence its fourth Bakken well in the first quarter of
2007. Bud Brigham the Chairman, President and CEO stated, "As
expected, the installation of tubing and a rod pump enhanced the
lift and production for the Field 18-19 1-H. We believe it is
likely that most of our Bakken wells will require rod pumps to
enhance the production. In addition, we expect to have additional
results for our next two Bakken wells over the next 45 days or so.
Given our opportunity to optimize how we drill and complete these
wells over time, we're pleased with the results to date. We've
grown our acreage position in the play to just over 90,000 net
acres." 2006 OPERATIONAL STATISTICS Thus far in 2006 Brigham has
spud 35 wells, retaining an average working interest of
approximately 58%. Twenty-four of these wells have been or are
currently being completed, four have been plugged and seven are
currently drilling. Brigham's gross and net completion rate thus
far in 2006 is 86% and 88% 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 federal securities laws. Important factors that could cause
our actual results to differ materially from those contained in the
forward looking statements including 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
DATASOURCE: Brigham Exploration Company CONTACT: Rob Roosa, Finance
Manager of Brigham Exploration Company, +1-512-427-3300 Web site:
http://www.bexp3d.com/
Copyright