-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UTk6AhWGVINsTbXRZSEFi9GCWC+COlN+dubcxFIUYia4AQgv2jQ/rJPW9uWVkzkE AVZ6tPYspUd0d/sIj/mMsQ== 0001015402-02-001572.txt : 20020508 0001015402-02-001572.hdr.sgml : 20020508 ACCESSION NUMBER: 0001015402-02-001572 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020506 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020508 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIGHAM EXPLORATION CO CENTRAL INDEX KEY: 0001034755 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 752692967 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22433 FILM NUMBER: 02638351 BUSINESS ADDRESS: STREET 1: 6300 BRIDGE POINT PARKWAY STREET 2: BLDG 2 SUITE 500 CITY: AUSTIN STATE: TX ZIP: 78730 BUSINESS PHONE: 5124273300 MAIL ADDRESS: STREET 1: 6300 BRIDGE POINT PARKWAY STREET 2: BLDG 2 SUITE 500 CITY: AUSTIN STATE: TX ZIP: 78730 8-K 1 doc1.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 --------------- Date of Report (Date of earliest event reported): MAY 6, 2002 BRIGHAM EXPLORATION COMPANY (Exact name of registrant as specified in its charter) DELAWARE 000-22433 75-2692967 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 6300 BRIDGEPOINT PARKWAY BUILDING TWO, SUITE 500 AUSTIN, TEXAS 78730 (Address, including zip code, of principal executive offices) Registrant's telephone number, including area code: (512) 427-3300 ================================================================================ ITEM 5. OTHER EVENTS. On May 6, 2002, the Registrant issued a press release announcing first quarter 2002 operational results. The full text of the press release, other than (a) the fifth sentence of the paragraph labeled Adjacent Fault Blocks under the heading "Gulf Coast Vicksburg Trend", which is set forth in Exhibit 99.1 hereto, is filed and incorporated in this Report as if fully set forth herein. On May 7, 2002, the Registrant issued a press release announcing first quarter 2002 fiancial results. The full text of the press release which is set forth in Exhibit 99.2 hereto, is filed and incorporated in this Report as if fully set forth herein. 1 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Item Exhibit ---- ------- 99.1* Press Release dated May 6, 2002. 99.2* Press Release dated May 7, 2002. - --------------- * filed herewith. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BRIGHAM EXPLORATION COMPANY Date: May 8, 2002 By: /s/ Curtis F. Harrell -------------------------- Curtis F. Harrell Executive Vice President & Chief Financial Officer 3 INDEX TO EXHIBITS Item Number Exhibit ------------ ------- 99.1* Press Release dated May 6, 2002. 99.2* Press Release dated May 7, 2002. EXHIBIT 99.1 [GRAPHIC OMITTED] BRIGHAM EXPLORATION NEWS RELEASE EXPLORATION COMPANY FOR IMMEDIATE RELEASE BRIGHAM EXPLORATION PROVIDES ITS Q1 2002 OPERATIONAL UPDATE INCLUDING TWO SUCCESSFUL VICKSBURG COMPLETIONS ================================================================================ Austin, TX -- May 6, 2002 -- Brigham Exploration Company (NASDAQ:BEXP) today announced two successful Vicksburg completions and provided an operational update for the first quarter of 2002. GULF COAST VICKSBURG TREND Triple Crown Field - Brigham recently completed its third well in the field, the - ------------------ Sullivan #F-31 (42% working interest, 31% net revenue interest), which found approximately 65 feet of Upper Vicksburg net pay. Subsequent to the fracture stimulation of three separate pay intervals, the Sullivan #F-31 began producing to sales in late April at a commingled rate of approximately 8.4 MMcf of natural gas and 94 barrels of condensate per day (9.0 MMcfe), or 2.8 MMcfe per day net to Brigham's revenue interest. Brigham currently plans to drill two additional development wells in the field in 2002, the first of which is expected to spud early in the third quarter. Home Run Field - Brigham recently completed the Sullivan #C-28, its sixth - ---------------- successful well in the field. The well began producing to sales in January at 9.3 MMcfe per day, or 2.3 MMcfe per day to Brigham's 25% net revenue interest. Future development plans include the spud of the Palmer #5R in the next 60 days, and the drilling of another development well later in the year. The Palmer #5 was originally drilled in 2001, and although the well experienced a casing failure, the well encountered pay intervals comparable to that of the successfully completed D.J. Sullivan #C-25 well. Adjacent Fault Blocks - In the third quarter Brigham plans to test one of - ----------------------- several adjacent fault blocks structurally low to the Home Run Field and structurally high to the Triple Crown Field. To date, three wells have penetrated the Upper Vicksburg 9800' sand in the "Floyd" fault block prior to crossing a fault. All three of these wells have been productive in this Upper Vicksburg 9800' sand. Brigham expects the Floyd well to test additional Upper Vicksburg intervals that are now producing in the adjacent Triple Crown Field and the Lower Vicksburg intervals that are currently producing in the adjacent Home Run Field. The Company will retain a 34% working and 25% net revenue interest in the Floyd fault block test, which has a reserve potential of approximately 50 Bcfe. GULF COAST FRIO TREND Providence Field - During February 2002, Brigham completed the discovery well, - ----------------- the Staubach #1, which is currently producing approximately 1,600 barrels of oil and 4.3 MMcf of natural gas per day, or 4.3 MMcfe net to Brigham's 31% revenue interest. The Staubach #1 is expected to reach payout of its drilling and completion costs in May, at which time Brigham's working interest will reduce from 41% to approximately 34%. While drilling its first offset to the discovery, Brigham experienced a loss of surface control from an unanticipated pay interval at 10,370 feet, causing the well to flow natural gas to the surface. Five days later, the Burkhart #1 bridged off naturally and the well was shut in. This pay interval is shallower and fault separated from the Lower Frio interval currently producing in the Staubach #1. Brigham spud the Burkhart #1R replacement/relief well on April 8th, which is currently drilling as planned at a depth of approximately 9,800 feet. The Company plans to intersect and cement the original Burkhart #1 borehole over the Middle Frio interval that generated the uncontrolled flow, and to subsequently drill deeper in order to attempt to develop the Lower Frio sands currently producing in the Staubach #1. Brigham expects results from drilling of this relief/replacement well by late May. In June, Brigham plans to spud the Heubner #1, which is an additional offset to the Staubach #1. This well will be operated by Carrizo Oil & Gas, Inc. (NASDAQ:CRZO), and Brigham will retain a working interest of approximately 34%. This well will test the northern end of the approximately 800 acre structure, and results are expected by late August. With continued drilling success, Brigham expects to spud an additional development well during the fourth quarter 2002. 5 EXHIBIT 99.1 GULF COAST WILCOX TREND Dinn Ranch Field Discovery - As reported by EOG Resources, Inc. (NYSE:EOG) in a - --------------------------- press release issued on April 29, 2002 and EEX Corporation (NYSE: EEX) in a release dated May 1, 2002, the two operators are developing a potentially substantial field discovery in the deep Wilcox trend. As a result, two wells were reportedly producing to sales at a combined 34 MMcfe of natural gas equivalent per day at the end of the first quarter, two additional Dinn Ranch development wells were completing and a third well was drilling. One of the wells currently completing, the EEX operated Lopez Mineral Trust #1, encountered approximately 300 feet of apparent pay. Brigham retained a 2% overriding royalty interest in the discovery, which converts at 100% payout to a 12.5% working interest with a 1% overriding royalty interest. At 200% payout, Brigham's interest converts to a 25% working interest. Completion operations are expected to conclude in late May, and production should go to sales beginning in June. Brigham anticipates that an additional development well will be spud in the third quarter, in which Brigham will retain the same reversionary working interests as the Lopez Mineral Trust #1. If successful, a third development well could be drilled late in the year, and Brigham would retain a 25% ground floor working interest in this test. ANADARKO BASIN SPRINGER TREND In March, Brigham spud the first of four successive Springer channel tests. Brigham retained a 33% working interest in the first test, which is expected to reach total depth by late May. The Company's working interest in this four well program is expected to range between 24% and 69%, and several of the wells are intended to further delineate a Springer channel trend Brigham successfully discovered in 2001. Brigham continues to add to its substantial inventory of drilling locations in the Springer Trend, including the recent acquisition of approximately 14,000 gross acres (4,600 net) over various prospects and leads in the area. WEST TEXAS HORSESHOE ATOLL TREND Exploration Drilling - In 2001, Brigham completed four consecutive West Texas - --------------------- wells that are currently producing approximately 850 barrels of oil per day, or over 600 barrels of oil per day net to Brigham's revenue interest. Seeking to capitalize on this recent success, the Company has commenced a five well drilling program. Brigham will retain working interests ranging from 35% to 50% in these wells, in which the majority of the Company's costs are carried to casing point by industry participants. Three of these wells are currently drilling, the first of which should reach its total depth by late May. Brigham continues to generate and lease 3-D delineated drilling locations utilizing its inventory of over 2,000 square miles of 3-D seismic data in West Texas. FIRST QUARTER 2002 OPERATIONAL UPDATE Brigham spud 5 wells during the first quarter in which it retained an average working interest of 26%. Two of these wells have been completed and three are currently drilling. Brigham has achieved a 100% average gross and net completion rate thus far in its 2002 drilling program. Since the end of the quarter, three additional wells have been spud. Production volumes averaged 25.3 MMcfe per day for the first quarter 2002, and the Company exited the first quarter at an estimated 30 MMcfe per day. MANAGEMENT COMMENTS Bud Brigham, the Company's Chairman, CEO and President, stated, "We're pleased with our drilling results thus far in 2002. We continue to capitalize on our drilling successes in our five focus plays, where we've completed 26 wells in 29 recent attempts. In addition, our carried interest in the Dinn Ranch Wilcox Field development drilling provides additional production and reserve upside for our Company. Mr. Brigham further stated, "Due to our recent drilling successes, our growth in production volumes and the improvement in commodity prices, we have elected to accelerate our drilling program and now anticipate spending approximately $21 million on drilling in 2002, up from our original budget of $16 million. Given our current activity, in which we have six wells drilling, we look forward to reporting on what should be a very exciting second quarter for our shareholders." 6 EXHIBIT 99.1 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 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. Contact: John Turner, Manager of Finance and Investor Relations (512) 427-3300 / investor@bexp3d.com 7 EX-99.2 3 doc2.txt EXHIBIT 99.2 [GRAPHIC OMITTED] BRIGHAM EXPLORATION NEWS RELEASE EXPLORATION COMPANY FOR IMMEDIATE RELEASE BRIGHAM EXPLORATION ANNOUNCES Q1 2002 FINANCIAL RESULTS AND PROVIDES Q2 2002 GUIDANCE ================================================================================ Austin, TX -- May 7, 2002 -- Brigham Exploration Company (NASDAQ:BEXP) today announced its financial results for the first quarter ended March 31, 2002. Highlights of Brigham's financial performance for the first quarter include: - - Production volumes increased 10% to average 25.3 MMcfe per day as compared --------------------------------- to volumes produced in the first quarter of 2001, with an estimated exit rate for the quarter of approximately 30 MMcfe per day; - - 6% sequential quarterly growth in revenue due to 5% higher realized natural ----------------------------------------- gas and oil prices ($2.83 vs. $2.69 per Mcfe); and - - 8% sequential increase in EBITDA to $4.3 million in the first quarter 2002 --------------------------------- from $4.0 million in the fourth quarter 2001 due to the combined effects of improved realized sales prices and lower discretionary unit operating costs. FIRST QUARTER 2002 RESULTS Average net daily production volumes for the first quarter 2002 were 25.3 MMcfe, an increase of 10% from the first quarter 2001 and flat relative to the fourth quarter 2001. Brigham estimates that it exited the first quarter 2002 producing approximately 30 MMcfe per day. Natural gas and oil sales declined 7% from $6.9 million in the first quarter of 2001 to $6.4 million in the first quarter of 2002. A 16% decrease in Brigham's average equivalent sales price received for natural gas and oil was partially offset by $1.3 million in revenue related to increased production volumes. Lease operating expenses in the first quarter of 2002 were $871,000 compared to $706,000 in the first quarter of 2001. Partially offsetting this increase, production taxes declined 24% to $353,000 in the first quarter of 2002 compared to $466,000 in the first quarter of 2001. Production tax refunds on wells that qualify for reduced severance tax rates and a 59% decrease in the average pre-hedge equivalent sales price were the primary contributors to this decrease. General and administrative expenses in the first quarter 2002 were $964,000 and increased 5% to $0.42 per Mcfe on a per unit of equivalent production basis relative to the first quarter 2001. Depletion expenses were $3.1 million and Brigham's depletion rate per unit increased 15% over the prior year first quarter to $1.38 per Mcfe. Of this increase, $289,000 was attributable to higher production volumes and $371,000 was due to an increase in the depletion rate per unit of production. Lower interest rates on outstanding debt borrowings during the first quarter of 2002 led to a decrease in interest expense from $1.8 million in first quarter of 2001 to $1.4 million in the first quarter of 2002. Brigham's average effective interest rate on its total outstanding indebtedness decreased from 10.9% in the first quarter of 2001 to 7.4% in the first quarter of 2002. The decrease in Brigham's average effective interest is primarily the result of lower LIBOR rates for the first quarter of 2002. Earnings before interest, taxes, depreciation, depletion, amortization and other non-cash charges (EBITDA) decreased from $5.1 million in the first quarter 2001 to $4.3 million in the first quarter 2002. Operating cash flow, before changes in working capital, declined 8% from $3.7 million to $3.4 million for the first quarter 2002. However, on a sequential quarterly basis, EBITDA increased 8% and operating cash flow improved by 11% from fourth quarter 2001 levels. Recurring earnings per diluted share were $(0.07) for the first quarter of 2002, compared to $0.01 per diluted share for the first quarter 2001. Net capital expenditures during the first quarter 2002 totaled $6.6 million, which included $5.2 million related to drilling, $344,000 for land and G&G activities and $1.1 million for capitalized interest and overhead expenses. 8 EXHIBIT 99.2 MANAGEMENT COMMENTS Curtis Harrell, the Company's Executive Vice President and CFO stated, "We're pleased with our progress during the first quarter, with results in line with expectations. More importantly, given our recent increase in production volumes, coupled with substantially improved commodity prices and an improved hedge position, we're now well positioned to deliver an outstanding second quarter. Our corporate goal remains to deliver sequential quarterly growth in production volumes and cash flow for each reporting period this year." SECOND QUARTER 2002 RESULTS GUIDANCE The following forecasts and estimates of Brigham's second quarter 2002 results are forward looking statements subject to the risks and uncertainties identified in the "Forward Looking Statements Disclosure" at the end of this release. Brigham currently expects second quarter 2002 production volumes to average between 28 and 31 MMcfe per day, 58% of which consists of natural gas. For the second quarter 2002, lease operating expenses are projected to be $0.36 per Mcfe, production taxes are projected to be 5.5% of pre-hedge oil and gas revenues, and net general and administrative expenses are projected to be $950,000 ($0.34 to $0.38 per Mcfe). Based on these production and cost estimates, assumed average NYMEX prices of $3.48 per MMBtu for natural gas and $26.17 per barrel for oil, and taking into account current hedging contracts outstanding, Brigham forecasts revenue of between $8.1 and $9.1 million and EBITDA of between $5.8 and $6.6 million for the second quarter 2002. CONFERENCE CALL INFORMATION Brigham management will host a conference call to discuss the Company's first quarter 2002 operational and financial results with investors, analysts and other interested parties on Wednesday, May 8th, at 9:00 a.m. Central time. To participate in the call, please dial 800-360-9865 and ask for the Brigham Exploration conference call. A telephone recording of the conference call will be available to interested parties approximately two hours after the call is completed through 12:00 p.m. Central time on Wednesday, May 22nd. To access the recording, domestic callers dial 800-428-6051 and international callers dial 973-709-2089. The passcode I.D. for the conference playback is 241324. 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 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 STATEMENTS 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 - Finance & Investor Relations (512) 427-3300 / investor@bexp3d.com 9
EXHIBIT 99.2 BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended March 31, ---------------------------------- 2001 2002 ----------------- --------------- Revenues: Natural gas and oil sales $ 6,905 $ 6,434 Other revenue 138 10 ----------------- --------------- 7,043 6,444 Costs and expenses: Lease operating 706 871 Production taxes 466 353 General and administrative 817 964 Depletion of natural gas and oil properties 2,477 3,137 Depreciation and amortization 152 103 ----------------- --------------- 4,618 5,428 ----------------- --------------- Operating income 2,425 1,016 Interest expense, net (1,806) (1,421) Interest income 62 19 Other income (expense) (a) 221 (248) ----------------- --------------- Net income (loss) before income taxes 902 (634) Income taxes - - ----------------- --------------- Net income (loss) 902 (634) Preferred stock accretion and dividends 478 698 ----------------- --------------- Net income (loss) to common stockholders $ 424 $ (1,332) ================= =============== Net income (loss) to common per share: Basic $ 0.03 $ (0.08) Diluted $ 0.02 $ (0.08) Wt. avg. common shares outstanding: Basic 15,983 16,016 Diluted 17,888 16,016 (a) Includes non-cash income (expenses) related to changes in the fair market value of certain hedging contracts of: $ 221 $ (251)
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EXHIBIT 99.2 BRIGHAM EXPLORATION COMPANY PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA (unaudited) Three Months Ended March 31, ---------------------------------- 2001 2002 ------------------ -------------- Avg. net daily production: Natural gas (MMcf) 17.9 14.9 Oil (Bbls) 841 1,720 Equivalent natural gas (MMcfe) (6:1) 22.9 25.3 Total net production: Natural gas (MMcf) 1,610 1,344 Oil (MBbls) 76 155 Equivalent natural gas (MMcfe) (6:1) 2,064 2,273 % Natural gas 78% 59% Sales prices: Natural gas ($/Mcf) (a) $ 3.03 $ 2.49 Oil ($/Bbl) (a) $ 26.74 $ 19.93 Equivalent natural gas ($/Mcfe) (6:1) $ 3.35 $ 2.83 Other financial data: EBITDA ($000) (b) $ 5,116 $ 4,278 Operating cash flow before changes in working capital ($000) $ 3,728 $ 3,370 (a) Includes the effects of hedging gains (losses) of: Natural gas ($/Mcf) $ (4.08) $ 0.25 Oil ($/Bbl) $ (1.00) $ (0.32) (b) Net income (loss) plus interest expense, DD&A expenses, income taxes and other non-cash items.
SUMMARY CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) December 31, March 31, 2001 2002 ------------- ---------- Assets: Current assets $ 16,968 $ 19,227 Natural gas and oil properties, at cost, net 151,891 155,383 Other property and equipment, at cost, net 1,331 1,337 Other non-current assets 3,218 2,990 ------------- ---------- Total assets $ 173,408 $ 178,937 ============= ========== Liabilities and stockholders' equity: Current liabilities $ 15,266 $ 19,280 Notes payable 75,000 75,000 Senior subordinated notes 16,721 20,948 Other non-current liabilities 206 485 ------------- ---------- Total liabilities 107,193 115,713 Redeemable preferred stock 16,614 17,312 Stockholders' equity 49,601 45,912 ------------- ---------- Total liabilities and stockholders' equity $ 173,408 $ 178,937 ============= ==========
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EXHIBIT 99.2 BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, ------------------------------ 2001 2002 -------------- -------------- Cash flows from operating activities: Net income (loss) $ 902 $ (634) Depletion, depreciation and amortization 2,629 3,240 Interest paid through issuance of add'l senior sub. Notes 75 227 Amortization of deferred loan fees and debt issuance cost 343 286 Market value adjustment for derivative instruments (221) 251 -------------- -------------- Operating cash flow 3,728 3,370 Changes in working capital and other items (2,476) 661 -------------- -------------- Cash flows provided (used) by operating activities 1,252 4,031 Cash flows used by investing activities (8,918) (5,000) Cash flows provided by financing activities 18,858 3,677 -------------- -------------- Net increase (decrease) in cash and cash equivalents $ 11,192 $ 2,708 ============== ==============
SUMMARY PER MCFE DATA (unaudited) Three Months Ended March 31, ---------------------------- 2001 2002 ------------- ------------- Revenues: Natural gas and oil sales $ 3.35 $ 2.83 Other revenue 0.07 0.00 ------------- ------------- 3.42 2.83 Costs and expenses: Lease operating 0.34 0.38 Production taxes 0.23 0.16 General and administrative 0.40 0.42 Depletion of natural gas and oil properties 1.20 1.38 Depreciation and amortization 0.07 0.05 ------------- ------------- 2.24 2.39 ------------- ------------- Operating income $ 1.18 $ 0.44 ============= =============
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EXHIBIT 99.2 BRIGHAM EXPLORATION COMPANY SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF MAY 7, 2002 (unaudited) Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 -------- -------- -------- -------- -------- -------- -------- Natural Gas Swap: MMBtu/d 7,500 10,000 8,500 7,500 6,000 5,000 3,500 $/MMBtu $ 2.900 $ 3.165 $ 3.246 $ 3.532 $ 3.281 $ 3.503 $ 3.731 Natural Gas Cap: MMBtu/d 10,000 $/MMBtu $ 2.756 Crude Oil Swap: Bbls/d - - 500 250 250 250 250 250 $/Bbl - - $ 25.06 $ 24.50 $ 23.92 $ 23.50 $ 23.15 $ 22.90 Crude Oil Collar: Cap - Bbls/d 750 500 500 250 250 - - - - Cap - $/Bbl $ 22.29 $ 22.46 $ 22.46 $ 22.56 $ 22.56 - - - - Floor - Bbls/d 750 500 500 250 250 - - - - Floor - $/Bbl $ 18.00 $ 18.00 $ 18.00 $ 18.00 $ 18.00 - - - -
Note: Hedged volumes and prices reflected in this table represent average contract amounts for the quarterly periods presented; natural gas hedge prices and crude oil hedge contract prices are based on NYMEX pricing. 13 -----END PRIVACY-ENHANCED MESSAGE-----