BEXP to accelerate Bakken oil development

[dan_s]

This news from Sweet 16 member, Brigham Exploraton (BEXP) will result in an improved forecast for 2011. Western North Dakota is like an old Boom Town. Drilling rigs dot the landscape but completions have been delayed due to a shortage of frac crews and completion equipment. BEXP is a leader up there and they are ramping up to completing 8 wells per month. This means BEXP oil production is going up quarter-after-quarter for years to come. - Dan
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From 9/9 press release:

Brigham's accelerated development of its core operated acreage in its Rough Rider and Ross project areas is proceeding with four operated rigs running in Rough Rider and one operated rig running in Ross. Brigham's sixth operated rig is expected to arrive mid-October and will drill locations in the Ross project area. Rigs seven and eight are expected to arrive in January and May 2011, respectively.

Brigham currently has one well fracing and 11 wells waiting on completion. Given additional access to a shared frac crew, Brigham's pace of completions is expected to accelerate this month. It is estimated that Brigham will fracture stimulate and bring on line to production approximately six wells per month beginning this month. In the first quarter 2011, additional fracture stimulation capacity is expected to be added. 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're manufacturing high rate Bakken and Three Forks crude oil wells on a consistent and repeatable basis in our core 198,400 net acres. Since innovating and developing our long lateral high frac stage wells in early 2009, we've completed 32 wells in North Dakota at an average early 24-hour peak rate of approximately 2,643 barrels of equivalent. Importantly, the pace of completions will step up this month and we anticipate fracing and bringing on line to production six wells per month. Early next year, we expect to step up the pace of completions again and, at that juncture, we anticipate fracing and bringing on line to production eight wells per month."

Bud Brigham continued, "Important initiatives in our core acreage are progressing as envisioned. We recently completed drilling operations on our State 36-1 #2H Three Forks well in Rough Rider. We were very pleased with our initial viewing of the State 36-1 #2H core and the well had good shows while drilling. We'll frac the well in the second half of October or early November. In our Brad Olson 9-16 spacing unit, which is also located in Rough Rider, we completed drilling operations on our #2H Bakken infill well and are in the process of running our horizontal liner in our #3H Bakken infill well. We'll fracture stimulate the Brad Olson #3H infill well in October, which will be monitored with microseismic to evaluate frac wing performance. We currently plan to fracture stimulate the Brad Olson #2H in late-November."

Bud Brigham concluded, "Our staff is doing a tremendous job managing our high rate of growth. Our continuing ramp up in drilling and completion activity over the next five to six months will be a significant driver for higher levels of high margin crude oil production and reserve growth that will benefit our stockholders."

[dan_s]

The unemployment rate is just 3.6% in North Dakota, but 14.3% in Nevada.

[bearcatbob]

I wonder if "Team No Frac" will show up in North Dakota? Frankly, I am beginning to think that the noise against natural gas shale fraccing is because cheap natural gas is such a threat to Wind and Solar.

It is extra tough to justify wasting money on wind and solar when a cheap clean fuel is available in abundance. Perhaps the startegy is to simply work to remove the "cheapness" from the competing fuel.

The more this strategy succeeds the more companies like MMR or SD - or in fact any western producer - look good.
Bob

[dan_s]

Bob;

"Team No Frac" will not be welcome in North Dakota. ND is one of the friendliest states in the union for oil & gas companies. It also has the lowest unemployment in the country.

The Bakken Shale development drilling has created an boom for the citizens of ND.

Dan