-----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, RXHcr1kQhSq4LNjCWOdVQhmjE9SPK5RvBaUbQd3BFcX8XdG5+BMbtLA7/0iAG43y MUaWz6newvgzTzrqJy8rWw== 0001144204-07-022085.txt : 20070502 0001144204-07-022085.hdr.sgml : 20070502 20070502095858 ACCESSION NUMBER: 0001144204-07-022085 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070501 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20070502 DATE AS OF CHANGE: 20070502 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: 07808634 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 v073236_8-k.htm Unassociated Document


 
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 1, 2007

Brigham Exploration Company
(Exact name of registrant as specified in its charter)

Delaware
 
000-22433
 
75-2692967
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
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

 
(Former name or former address, if changed since last report.)
 

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
   
¨  
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
¨  
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
¨  
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
¨  
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))
 


 


Item 2.02 Results of Operation and Financial Condition.

Registrant is furnishing its press release dated May 1, 2007, which announces its financial results for the three months ended March 31, 2007 and provided second quarter forecasts. The text of that press release is attached to this Report as Exhibit 99.1 and is incorporated by reference herein.

With the filing of this report on Form 8-K and the issuance of the attached press release correction, we are also updating our corporate presentation, which can be found on our website at www.bexp3d.com. We caution you that the information provided in our corporate presentation is given as of May 1, 2007 based on currently available information, and that we are not undertaking any obligation to update our estimates as conditions change or other information becomes available.

Registrant is also furnishing its press release dated May 1, 2007, which provide operational update. The text of the press release is furnished as attached hereto as Exhibit 99.2.

Item 7.01 Regulation FD Disclosure.

Registrant is furnishing its press release dated May 1, 2007, which provide operational update. The text of the press release is furnished as attached hereto as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits.
 
(d)
 
Exhibit 99.1
Press Release dated May 1, 2007.
(d)
 
Exhibit 99.2
Press Release dated May 1, 2007.

3

 
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 2, 2007 By:   /s/ Eugene B. Shepherd, Jr.
 
Eugene B. Shepherd, Jr.
 

Executive Vice President &
Chief Financial Officer
 
4


INDEX TO EXHIBITS
 

Item Number
 
Exhibit
     
99.1*
 
Press Release dated May 1, 2007.
99.2*
 
Press Release dated May 1, 2007.
 

 
EX-99.1 2 v073236_ex99-1.htm

Brigham Exploration Reports First Quarter 2007 Results

AUSTIN, Texas, May 1 /PRNewswire-FirstCall/  Brigham Exploration Company (Nasdaq: BEXP) today announced financial results for the quarter ended March 31, 2007.

FIRST QUARTER 2007 RESULTS
 
Our average net daily production volumes for the first quarter 2007 were a record 41.2 MMcfe per day, up 15% compared to the first quarter 2006 and up 6% when compared to the fourth quarter 2006. First quarter 2007 revenues from the sale of oil and natural gas including oil and natural gas derivative hedging settlements were $29.9 million, up 16% when compared to the first quarter 2006. Increased production volumes and oil and natural gas derivative hedging settlements increased revenue by $3.6 and $1.4 million, respectively. These increases were partially offset by a 4% decrease in our average natural gas equivalent price, which decreased revenue by $0.8 million. Unrealized oil and natural gas derivative hedging losses, which result from the mark-to-market accounting of our oil and natural gas derivatives hedging contracts, decreased revenue by $4.8 million.
 
Our average realized price for natural gas in the first quarter 2007 was $7.76 per Mcf, which included a $0.44 per Mcf gain due to the settlement of our natural gas derivative hedging contracts. This compares to an average realized price in the first quarter 2006 of $7.34, which included a $0.01 per Mcf gain due to the settlement of our natural gas derivative hedging contracts. During the first quarter 2007, our average realized price for oil was $55.68 per barrel, which included a $0.93 per barrel gain due to the settlement of our oil derivative hedging contracts. This compares to an average realized price in the first quarter 2006 of $60.97, which included a $0.43 per barrel loss due to the settlement of our oil derivative contracts.
 
Our first quarter production costs, which include costs for operating and maintaining (O&M expense) our producing wells, expensed workovers, ad valorem taxes and production taxes, were down 40% on a per unit basis when compared to the first quarter 2006 to $0.71 per Mcfe. This decrease primarily resulted from a 94%, or $0.33 per Mcfe, decrease in production taxes associated with production tax refunds approved during the quarter totaling $1.4 million on our D.J. Sullivan C-31, Hobart 60 #4, Dawson State #3 and Dawson State #4 wells. Production costs also decreased because of a 27% decrease in our per unit ad valorem taxes associated with lower anticipated property valuations due to lower commodity prices and a 5% decrease in our per unit O&M expense associated with higher production volumes and lower salt water disposal costs.
 
Our general and administrative expense for the first quarter 2007 was 9% higher on a per unit basis as compared to the first quarter 2006. The increase was attributable to a $0.9 million increase in employee compensation expense before capitalization, of which $0.3 million related to an increase in non-cash stock compensation expense associated with FAS 123R.
 
Our depletion expense for the first quarter 2007 was $3.7 million higher than the first quarter 2006. Approximately 59% of the increase was due to an increase in our depletion rate while the remaining 41% of the increase was due to an increase in our production volumes. The increase in our depletion rate for the first three months of 2007 was primarily a result of an increase in the cost of reserve additions.
 
Our net interest expense for the first quarter 2007 increased by $2.3 million when compared to first quarter 2006. This increase was associated with our higher weighted average debt outstanding and our higher weighted average interest cost, due primarily to the coupon that we pay on our 9 5/8% senior notes due 2014.
 
We recorded deferred income tax expense of $1.0 million in the first quarter of this year compared to deferred income tax expense of $3.5 million in the first quarter last year. The decrease in our deferred income tax expense was due to lower first quarter 2007 income before income taxes due primarily to our unrealized losses on oil and natural gas derivative hedging contracts.
 
Our net income for the first quarter 2007 was $1.9 million ($0.04 per diluted share) compared to net income of $5.9 million ($0.13 per diluted share) in the first quarter 2006. First quarter 2007 net income includes $3.2 million after-tax ($4.9 million before-tax) in unrealized commodity derivative losses. Excluding the impact of these unrealized derivative losses, net income for the quarter would have been $5.1 million ($0.11 per diluted share).
 
As of March 31, 2007, we had $7.2 million in cash, $61.5 million of debt outstanding under our senior credit facility and a net debt to book capitalization ratio of 42%.
 
As of March 31, 2007, oil and gas capital expenditures totaled $34.6 million, which represents a 14% decrease from the first quarter 2006. Oil and gas capital expenditures for first quarters 2007 and 2006 were:
 
   
Three Months Ended March 31,
 
   
2007
 
2006
 
   
(in thousands)
 
Drilling
 
$
28,677
 
$
30,807
 
Net land and seismic
   
2,936
   
7,172
 
Capitalized costs
   
2,808
   
2,057
 
Capitalized SFAS 143 ARO
   
207
   
105
 
Total oil and gas capital expenditures
 
$
34,628
 
$
40,141
 
 


SECOND QUARTER 2007 FORECASTS
 
The following forecasts and estimates of our second quarter 2007 production volumes are forward looking statements subject to the risks and uncertainties identified in the "Forward Looking Statements Disclosure" at the end of this release. We currently expect our second quarter 2007 production volumes to average between 42 MMcfe per day and 45 MMcfe per day.
 
For the second quarter 2007, lease operating expenses are projected to be $0.76 per Mcfe based on the mid-point of our production guidance, production taxes are projected to be approximately 5.5% of pre-hedge oil and natural gas revenues, and general and administrative expenses are projected to be $2.4 million ($0.63 to $0.59 per Mcfe).

MANAGEMENT COMMENTS
 
Gene Shepherd, Brigham's Chief Financial Officer commented, "We're excited to see our anticipated production build occurring in March, which allowed us to post record production volumes and exceed the top end of our production guidance by 3% for the first quarter. The positive production momentum and our hedging program also translated in to strong revenue gains of 16% including hedge settlements. These strong revenues, combined with our ability to control our operating costs, generated earnings excluding our unrealized hedging losses of $0.11 per diluted share for our shareholders."

CONFERENCE CALL INFORMATION
 
Our management will host a conference call to discuss operational and financial results for the first quarter 2007 with investors, analysts and other interested parties on Wednesday, May 2, 2007, at 10:00 a.m. Eastern Time. To participate in the call, participants within the U.S. please dial 888-873-4896 and participants outside the U.S. please dial 617-213-8850. The participant passcode for the call is 39656471. 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. Eastern Time on June 1, 2007. 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 45866503. In addition, a live and archived web cast of the conference call will be available over the Internet at either http://www.bexp3d.com or http://www.streetevents.com.
 
A copy of this press release and other financial and statistical information about the periods covered by this press release and by the conference call that will take place on May 2, 2007, will be available on our website. To access the press release: go to http://www.bexp3d.comand click on News Releases. The file with a copy of the press release is named Brigham Exploration Reports First Quarter 2007 Results and is dated May 1, 2007. To access the other financial and statistical information that will be covered by the conference call that will take place on May 2, 2007, go to http://www.bexp3d.com and click on Event Calendar. The file with the other financial and statistical information is named Financial and Statistical Information for the First Quarter 2007 Conference Call and is dated May 2, 2007.

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 http://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 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




BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (unaudited)

 
   
Three Months Ended March 31,
 
   
2007
 
2006
 
Revenues:
             
Oil and natural gas sales
 
$
28,486
 
$
25,715
 
Hedging settlements
   
1,424
   
(27
)
 
   
29,910
   
25,688
 
Unrealized hedging gains/ losses
   
(4,916
)
 
(120
)
 
   
24,994
   
25,568
 
Other revenue
   
27
   
(22
)
Total Revenue
   
25,021
   
25,546
 
               
Costs and expenses:
             
Lease operating
   
2,569
   
2,730
 
Production taxes
   
71
   
1,144
 
General and administrative
   
2,178
   
1,769
 
Depletion of oil and natural gas properties
   
13,959
   
10,256
 
Depreciation and amortization
   
163
   
115
 
Accretion of discount on asset retirement obligations
   
117
   
70
 
 
   
19,057
   
16,084
 
Operating income
   
5,964
   
9,462
 
               
Other income (expense):
             
Interest expense, net
   
(3,417
)
 
(1,089
)
Interest income
   
131
   
106
 
Other income
   
190
   
907
 
 
   
(3,096
)
 
(76
)
Income before income taxes
 
$
2,868
 
$
9,386
 
Income tax expense:
             
Current
   
-
   
-
 
Deferred
   
(995
)
 
(3,511
)
 
   
(995
)
 
(3,511
)
Net income
 
$
1,873
 
$
5,875
 
               
Net income per share available to common stockholders:
             
Basic
 
$
0.04
 
$
0.13
 
Diluted
 
$
0.04
 
$
0.13
 
               
Weighted average shares outstanding:
             
Basic
   
45,051
   
44,986
 
Diluted
   
45,430
   
45,579
 




BRIGHAM EXPLORATION COMPANY
PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)


   
Three Months Ended March 31,
 
   
2007
 
2006
 
Average net daily production:
             
Natural gas (MMcf)
   
33.1
   
28.3
 
Oil (Bbls)
   
1,352
   
1,278
 
Equivalent natural gas (MMcfe) (6:1)
   
41.2
   
35.9
 
               
Total net production:
             
Natural gas (MMcf)
   
2,982
   
2,545
 
Oil (MBbls)
   
122
   
115
 
Equivalent natural gas (MMcfe) (6:1)
   
3,712
   
3,235
 
% Natural gas
   
80
%
 
79
%
               
Sales price:
             
Natural gas ($/Mcf)
 
$
7.32
 
$
7.33
 
Oil ($/Bbl)
   
54.75
   
61.40
 
Equivalent natural gas ($/Mcfe) (6:1)
   
7.67
   
7.95
 
               
Sales price including derivative settlement gains (losses):
             
Natural gas ($/Mcf)
 
$
7.76
 
$
7.34
 
Oil ($/Bbl)
   
55.68
   
60.97
 
Equivalent natural gas ($/Mcfe) (6:1)
   
8.05
   
7.94
 
               
Sales price including derivative settlement gains (losses) and unrealized gains (losses):
             
Natural gas ($/Mcf)
 
$
6.23
 
$
7.28
 
Oil ($/Bbl)
   
52.78
   
61.17
 
Equivalent natural gas ($/Mcfe) (6:1)
   
6.73
   
7.90
 




SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)

   
March 31,
2007
 
December 31,
2006
 
Assets:
 
(unaudited)
     
Current assets
 
$
29,200
 
$
31,218
 
Oil and natural gas properties, net
   
506,194
   
485,525
 
(full cost method)
             
Other property and equipment, net
   
1,184
   
936
 
Other non-current assets
   
4,131
   
4,908
 
Total assets
 
$
540,709
 
$
522,587
 
               
Liabilities and stockholders' equity:
             
Current liabilities
 
$
35,258
 
$
57,453
 
Senior notes
   
123,488
   
123,434
 
Senior credit facility
   
61,500
   
25,900
 
Senior subordinated notes
   
-
   
-
 
Mandatorily redeemable preferred
   
10,101
   
10,101
 
stock, Series A
             
Deferred income tax liability
   
34,853
   
34,609
 
Other taxes payable
   
2,139
   
-
 
Other non-current liabilities
   
5,534
   
5,075
 
Total liabilities
 
$
272,873
 
$
256,572
 
Stockholders' equity
   
267,836
   
266,015
 
Total liabilities and stockholders' equity
 
$
540,709
 
$
522,587
 



 
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)

   
Three Months Ended March 31,
 
   
2007
 
2006
 
Cash flows from operating activities:
             
Net income
 
$
1,873
 
$
5,875
 
Depletion, depreciation and amortization
   
14,122
   
10,371
 
Accretion of discount on ARO
   
117
   
70
 
Amortization of deferred loan fees and debt issuance costs
   
214
   
119
 
Non-cash stock compensation
   
421
   
491
 
Market value adjustments for derivatives instruments
   
4,916
   
(715
)
Deferred income tax expense
   
995
   
3,511
 
Other noncash items
   
-
   
42
 
Changes in operating assets and liabilities
   
(7,074
)
 
6,424
 
Cash flows provided by operating activities
 
$
15,584
 
$
26,188
 
               
Cash flows used by investing activities
   
(48,222
)
 
(33,492
)
Cash flows provided by financing activities
   
35,489
   
11,082
 
Net increase in cash and cash equivalents
 
$
2,851
 
$
3,778
 



 
SUMMARY PER MCFE DATA
(unaudited)

   
Three Months Ended March 31,
 
   
2007
 
2006
 
Revenues:
             
Oil and natural gas sales
 
$
7.67
 
$
7.95
 
Hedging Settlements
   
0.38
   
(0.01
)
Unrealized Hedging Gains / (Losses)
   
(1.32
)
 
(0.04
)
Other revenue
   
0.01
   
(0.01
)
 
 
$
6.74
 
$
7.89
 
Costs and expenses:
             
Lease operating
   
0.69
   
0.84
 
Production taxes
   
0.02
   
0.35
 
General and administrative
   
0.59
   
0.54
 
Depletion of natural gas and oil properties
   
3.76
   
3.17
 
Depreciation and amortization
   
0.04
   
0.04
 
Accretion of discount on ARO
   
0.03
   
0.02
 
 
 
$
5.13
 
$
4.96
 
Operating income
 
$
1.61
 
$
2.93
 
               
Interest expense, net of interest income (a)
   
(0.89
)
 
(0.30
)
Other income (expense) (b)
   
0.05
   
0.02
 
Adjusted income
 
$
0.77
 
$
2.65
 




BRIGHAM EXPLORATION COMPANY
SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF APRIL 30, 2007
(unaudited)
 
           
 2007
 
       
Hedge Strategy
 
Q2
 
Q3
 
Q4
 
Natural Gas Collars:
                               
Daily volumes
   
MMBtu/d
       
20,220
   
17,826
   
13,370
 
Floor
 
$
/MMBtu
   
Cash flow
 
$
7.118
 
$
7.133
 
$
7.781
 
Cap
 
$
/MMBtu
   
Cash flow
 
$
10.740
 
$
11.079
 
$
12.565
 
                                 
Oil Collars:
                               
Daily volumes
   
Bbls/d
       
802
   
636
   
516
 
Floor
 
$
/Bbl
   
Cash flow
 
$
56.29
 
$
56.00
 
$
58.96
 
Cap
 
$
/Bbl
   
Cash flow
 
$
81.84
 
$
82.00
 
$
84.17
 

 
           
 2008
 
       
Hedge Strategy
 
Q1
 
Q2
 
Q3
 
Q4
 
Natural Gas Collars:
                                     
Daily volumes
   
MMBtu/d
       
11,209
   
5,275
   
5,217
   
-
 
Floor
 
$
/MMBtu
   
Cash flow
   
8.232
   
6.891
   
6.891
   
-
 
Cap
 
$
/MMBtu
   
Cash flow
 
$
13.637
   
9.711
   
9.711
   
-
 
                                       
Oil Collars:
                                     
Daily volumes
   
Bbls/d
       
412
   
253
   
228
   
163
 
Floor
 
$
/Bbl
   
Cash flow
 
$
59.90
   
60.93
   
61.01
   
59.14
 
Cap
 
$
/Bbl
   
Cash flow
 
$
84.45
   
81.24
   
81.86
   
78.60
 
 
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.

SOURCE Brigham Exploration Company
-0- 05/01/2007
/CONTACT: Rob Roosa, Finance Manager of Brigham Exploration Company,
+1-512-427-3300 /
/Web site: http://www.bexp3d.com
http://www.streetevents.com /
(BEXP)


EX-99.2 3 v073236_ex99-2.htm Unassociated Document
Brigham Exploration Provides Operational Update
 
AUSTIN, Texas, May 1 /PRNewswire-FirstCall/ -- Brigham Exploration Company (Nasdaq: BEXP) announced another apparently successful Vicksburg well, the Sullivan C-35, and the successful drilling of its first 2007 horizontal Mowry well in the Powder River Basin. Brigham also announced the commencement of another Southern Louisiana Bayou Postillion well, and provided an operational update.
 
SIGNIFICANT WELLS RECENTLY COMPLETED, COMPLETING, DRILLING OR PREPARING TO DRILL

Conventional Wells
Objective
WI%
NRI
Status / Comments
         
Cotten Land #3
Oligocene
47%
33%
Producing approximately
       
28 MMcfed from approximately
       
30' pay, additional 50' pay
       
behind pipe
         
Marie Snyder #1
Oligocene
13%
10%
Producing approximately
       
17 MMcfed
         
Cotten Land #2
Oligocene
36%
25%
Commencing Bayou Postillion
       
well that could prove up new
       
reserves in an adjacent
       
fault block
         
Cotten Land #4
Oligocene
47%
33%
Planned June spud of offset
       
to Cotten Land #1, which
       
continues to produce
       
approximately 15 MMcfed
         
Sullivan C-35
Vicksburg
100%
76%
Completing Triple Crown
       
well with multiple apparent
       
pay horizons, potentially
       
proving up additional
       
locations
         
Sullivan #14
Vicksburg
100%
76%
Expect to spud Triple Crown
       
development well next week,
       
potentially proving up
       
additional locations
         
Sullivan #15
Vicksburg
100%
76%
Expected June spud of Home
       
Run development well,
       
potentially proving up
       
additional locations
         
Mills Ranch 96 #1
Hunton
68%
56%
Produced 4.5 MMcfed from
       
7 perforations over
       
120' interval, other 93 holes
       
shot over 860' apparently not
       
open. Preparing to
       
reperforate, install
       
production tubing and
       
commingling the Viola that
       
produced 3.0 MMcfed
         
Osborne 35 #12
Gr. Wash
25%
19%
Development well encountered
       
66' apparent net pay, likely
       
proves up additional offset
       
locations
         
Mother Bear #6-28
Gr. Wash
17%
10%
Additional development well
       
currently commencing
         
Osborne 35 #13
Gr. Wash
25%
19%
Planned June spud of 3rd
 
 
 

 
 
Resource Plays
Objective
WI%
NRI
Status / Comments
         
Werner #1-14H
Mowry
50%
40%
Completing after reaching
       
total depth of 10,235',
       
including 3,100' of lateral
       
with strong shows, plan to
       
begin testing ~ 2 weeks
         
State 1-16H
Mowry
50%
40%
Commencing 2nd 2007
         
Mowry well
       
Mill Trust. 1-12H
Mowry
44%
34%
Still testing outer 415' of
       
open hole lateral, 885' cased
       
hole will be perforated and
       
stimulated
         
Krejci Fed. #3-29H
Mowry
50%
40%
Pumping 55-65 Bopd, will
       
check for likely fill over
       
outer perforations
         
Mracheck 15-22 1-H
Bakken
100%
77%
Planning to fracture
       
stimulate in about 2 weeks,
       
pre frac production rate of
       
20-30 bopd on rod pump
 
Gulf Coast Exploration Trend
 
Southern Louisiana Bayou Postillion Project, Iberia Parish - The Cotten Land #1, Marie Snyder #1 and Cotten Land #3 are currently producing approximately 60 MMcfe per day, or approximately 15 MMcfe per day net to Brigham's revenue interest. Brigham is currently commencing the Cotten Land #2, which if successful could prove up new reserves in an adjacent fault block. In June Brigham plans to commence the Cotten Land #4, which should encounter the Oligocene objectives approximately structurally flat to the Cotten Land #1. Results for the Cotten Land #2 and Cotten Land #4 are expected in June and August, respectively. Brigham operates the drilling of the Bayou Postillion wells, with Penn Virginia (NYSE: PVA) operating the production phase and participating with significant working interests.
 
Gulf Coast Vicksburg Development
 
Triple Crown Field Development - Brigham successfully drilled and is currently completing the Sullivan C-35, which encountered apparent pay in the Brigham, 9800', Loma Blanca and Dawson sand intervals. Casing has been set and the completion is underway with the well expected to commence producing to sales by late May. A successful completion of the Sullivan C-35 likely proves up additional Upper Vicksburg development locations.
 
 
 

 
Brigham expects to spud the Sullivan #14 next week. The Sullivan #14 is expected to test additional reserve potential in the Upper and Lower Vicksburg. With success, the Sullivan #14 would also prove up additional development locations in the Triple Crown Field.
 
Home Run Field Development - In June, Brigham plans to commence the Sullivan #15, a significant development well in its Home Run Field. The Sullivan #15 appears to be a structurally high location at various Lower Vicksburg intervals in the Home Run Field, and could potentially prove up significant additional development locations. Results are expected in July.
 
Anadarko Basin Hunton Development
 
Mills Ranch Field 96 #1 Update - As previously announced, Brigham attempted to perforate and stimulate the substantial apparent pay encountered in the lower, middle and upper Hunton intervals. Subsequent to these operations the well was connected to sales at a rate of approximately 4.5 MMcf of natural gas per day, despite the fact that production tubing had yet to be installed. Subsequent production logging indicated that only seven perforations over an approximate 120 foot interval were open, and that the other 93 perforations shot over approximately 860 feet of apparent pay were apparently not open. Operations are currently underway to prepare to reperforate and stimulate the remaining Hunton pay intervals, install production tubing, and subsequently commingle the previously tested Viola interval. The Viola previously produced approximately 3 MMcfe per day prior to operations to complete the shallower Hunton intervals. Brigham expects to complete these operations and resume production to sales later this month. Brigham operates the Mills Ranch 96 #1 with an approximate 68% working and 56% revenue interest, with Panhandle Royalty (Amex: PHX) participating with an approximate 10% working and 13% revenue interest.
 
Resource Plays
 
Powder River Basin Mowry Update - Brigham has successfully drilled the Werner
 
1-14H to a total depth of 10,235 feet, including approximately
 
3,100 feet of lateral with significant fracturing and strong oil shows. Brigham is currently preparing to run a preperforated liner and to commence production testing the entire length of the lateral. Plans are to quickly commence producing to sales, with early results expected in late May or early June.
 
Brigham is preparing to commence its second 2007 horizontal Mowry well, the State #1-16H. Results for the State #1-16H are expected in late June or early July.
 
Completion operations are continuing on Brigham's first two horizontal Mowry wells. After fracture stimulating the 1,381 foot cased hole portion of its first horizontal Mowry well, the Krejci #3 is currently producing 55 to 65 barrels of oil per day. Given that this rate is below that of the previously tested cased and open hole intervals, it's likely that there is an obstruction, potentially fill, limiting the hydrocarbon entry in the outer extent of the lateral. Brigham expects to commence operations to check for fill, and to potentially clean out the bore hole to enhance production.
 
Brigham is still testing the Mill Trust 1-12H in the 415 foot open hole interval, at recent rates of between 10 and 20 barrels of oil per day. Late in the second quarter, or early in the third quarter, Brigham expects to fracture stimulate and test the approximately 885 feet of cased lateral, which encountered strong oil shows while drilling.
 
 
 

 
Brigham owns a 50% interest in its Mowry joint venture, with American Oil and Gas, Inc. (Amex: AEZ) retaining a 45% interest and privately-held North Finn retaining 5%. Brigham's acreage holdings in the play are approximately 63,000 net acres. With success, assuming 160 acre spacing, over 700 gross, or up to 393 net locations could be drilled to fully develop Brigham's acreage position.
 
Williston Basin Bakken - Brigham plans to fracture stimulate its third horizontal Bakken well, the Mracheck 15-22 1-H, in about two weeks. Prior to stimulation, the Mracheck has been on rod pump producing between 20 and 30 barrels of oil, and 10 to 20 Mcf of natural gas per day. Brigham's first completion, the Field 18-19 #1H is currently producing between 40 and 60 barrels of oil, and 30 to 50 Mcf of natural gas per day after stimulation. Brigham's second completion, the Erickson, is currently producing between 80 and 100 barrels of oil, and 70 to 90 Mcf of natural gas per day subsequent to stimulation.
 
Brigham has grown its acreage position in the Williston Basin to over 150,000 net acres, after adding 24,350 net acres through its recently announced joint venture with Northern Oil and Gas (OTC Bulletin Board: NOGS). As evidenced by apparent permitting and rig activity, horizontal Mountrail County Bakken drilling appears to be accelerating. Brigham and Northern jointly control 5,120 gross and 3,000 net acres spread across 19 sections, in an area proximal to recently drilled high rate Bakken producers. Brigham currently anticipates at least two Mountrail County joint venture wells commencing in 2007, the first during the third quarter, with the second expected to commence early in the fourth quarter. Assuming all of the acreage is successfully drilled on 640 acre spacing, 19 gross or 4.7 net wells could be drilled by Brigham and Northern to fully develop the Mountrail County Montana acreage.
 
2007 OPERATIONAL STATISTICS
 
Thus far in 2007, Brigham has spud seven wells, retaining an average working interest of approximately 50%. Three of these wells have been or are currently being completed, three are currently drilling and one has been plugged. Brigham's gross and net completion rates thus far in 2006 are 75% and 96% respectively.
 
Bud Brigham, the Chairman, President and CEO stated, "Our drilling program is delivering very strong production growth, as evidenced by our record production volumes for the first quarter of 2007. Given our wells underway in Southern Louisiana, and our wells completing and drilling as part of our continuous Vicksburg drilling in South Texas, we believe we have excellent visibility for this growth to continue. Further, over the next six months our Mowry and Bakken activity provides us with the opportunity to realize some exciting option value, potentially adding substantial reserves thereby meaningfully impacting our proved net asset value."
 
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 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
 
SOURCE Brigham Exploration Company
-0-         05/01/2007
/CONTACT: Rob Roosa, Finance Manager of Brigham Exploration Company, +1-512-427-3300/
 /Web site: http://www.bexp3d.com / (BEXP PHX AEZ NOGS PVA)
 
 
 

 
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