AUSTIN, TX -- (MARKET WIRE) -- 06/28/10 -- Brigham Exploration Company (BEXP:$17.00,00$0.06,000.35%) announced the completion of the Ross-Alger 6-7 #1H, the Owan 29-32 #1H and the Abe 30-31 #1H at early 24 hour peak flow back rates of 3,070, 2,302 and 1,847 barrels of oil equivalent, respectively. To date, Brigham has successfully completed 26 consecutive long lateral, high frac stage wells at an average early 24 hour peak flow back rate of 2,648 barrels of oil equivalent. Brigham also provided an operational update. Importantly, as a result of strong well performance, Brigham is updating its second quarter 2010 production guidance and is currently estimating that production will average between 7,000 and 7,500 barrels of oil equivalent per day.
Brigham announced the completion of its operated Ross-Alger, Owan and Abe at early 24 hour peak flow back rates of 3,070 (2,694 Bopd and 2.26 MMcf/d), 2,302 (1,976 Bopd and 1.95 MMcf/d) and 1,847 (1,570 Bopd and 1.66 MMcf/d) barrels of oil equivalent, respectively. The Ross-Alger is located in Brigham's Ross project area in Mountrail County, North Dakota. Brigham maintains an approximate 47% working interest in the Ross-Alger, which was completed with 32 frac stages. The Owan and the Abe are located in Brigham's Rough Rider project area in Williams County, North Dakota. Brigham maintains an approximate 78% and 97% working interest in the Owan and Abe, respectively, which were both completed with 31 frac stages.
Brigham's accelerated development of its core operated acreage in Williams, McKenzie and Mountrail Counties is proceeding with five operated rigs drilling, four of which are located in Rough Rider with an additional rig located in Ross. In addition, one Bakken well is currently fracing and seven operated wells are waiting on completion.
Bud Brigham, the Chairman, President and CEO, commented, "Our very successful drilling and completion formula is translating into strong production and reserve growth and as a result we currently anticipate that our second quarter production volumes will be approximately 12% above the mid point of our previously provided production guidance of 6,500 barrels of oil equivalent per day. Importantly, based on the mid point of our revised guidance, during the second quarter of 2010 our oil production volumes are expected to be up 183% relative to the same period a year ago, to a record of approximately 5,150 barrels of oil per day. The credit for this increase goes to our highly innovative and visionary staff, which continues to enhance our drilling and completion techniques in order to maximize stockholder value. Most recently, in addition to other innovations, we successfully ran 38 swell packers in the Wright 4-33 #1H and anticipate completing the well with 38 frac stages, which would represent a new company record in the Williston Basin."
Bud Brigham continued, "We anticipate that our escalating level of drilling activity will continue into the third quarter 2010, and that our completions will accelerate further as we gain access to a portion of an additional frac crew in August. Given that, we expect to bring on line production from our Williston Basin Bakken and Three Forks wells at an increasing rate during the second half of 2010. In addition, we anticipate adding our sixth operated rig in September and adding an additional operated rig every four months thereafter until we reach eight operated rigs in May 2011."
Bud Brigham continued, "In July, we anticipate finalizing our completion operations on our first Bakken well in Roosevelt County, Montana, which has the potential to begin to de-risk our sizeable acreage position in our Pale Rider project area. Also in the third quarter, we anticipate commencing drilling operations on our first Three Forks well in our Rough Rider project area in Williams County, North Dakota. A successful Three Forks well in Rough Rider would begin to de-risk the Three Forks potential on our 123,000 net acres in the area, which could potentially add up to 288 net incremental drilling locations to our already expansive Williston Basin inventory."
Bud Brigham concluded, "In the third and fourth quarters, we anticipate commencing our first Bakken infill wells in Rough Rider, where we plan to utilize a micro-seismic technology to monitor the performance of our high frac stage completions. We hope to learn a great deal from this initiative that could benefit our future development. Depending on results, there is the potential to add additional well locations beyond the three wells currently envisioned in each spacing unit. Overall, the second half of 2010 looks to be a very exciting time for our company in terms of the potential to continue to increase our high value oil production volumes and announce results on several catalysts for future additional drilling inventory growth."
About Brigham Exploration (BEXP:$17.00,00$0.06,000.35%)
Brigham Exploration Company (BEXP:$17.00,00$0.06,000.35%) 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 (BEXP:$17.00,00$0.06,000.35%) , 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 include 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.