6:09AM Brigham Exploration reports five high Rate Bakken completions and provides an operational update (BEXP) 26.73 : Co announces completion of five high rate Bakken wells at an average early 24-hour peak flow back rate of 3,085 barrels of oil equivalent. To date, co has completed 45 consecutive high frac stage, long lateral Bakken and Three Forks wells in North Dakota at an average early 24-hour peak flow back rate of 2,810 barrels of oil equivalent. In the first quarter 2011, co expects to add additional fracture stimulation capacity thereby providing access to two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. At that time, co estimates that ~8 wells per month will be fracture stimulated and brought on line to production.
My Fair Value estimate for BEXP is $28/share. If Q4 results beat guidance my Fair Value estimate will go up. - Dan
Brigham Exploration(BEXP_) engages in the exploration, development, and production of onshore oil and natural gas reserves in the Rocky Mountains, the Gulf Coast, the Anadarko Basin and west Texas.
Brigham beat analyst expectations in the third quarter, reporting a profit adjusted for extraordinary items of $18 million, or 15 cents per share, versus a loss in the corresponding period of $300,000. Analysts expected an adjusted profit of 10 cents per share.
Production jumped 64% in the third quarter to 8,509 barrels of oil equivalent a day. High value crude oil accounted for 75% of the production. Brigham expects total average production of 10,200-10,800 barrels of oil equivalent (boe) per day. The company also raised its full-year exploration and development capital budget by 15 percent to $466.1 million.
The updated 2010 budget will fund approximately 44.8 net Williston Basin wells, two net Vicksburg wells in South Texas and 2.8 net wells primarily in the West Texas Wolfberry oil resource play.
Brigham recently reported above-average production rates from its five new wells in the oil-rich formation in the Bakken region located in North Dakota and Montana.
13 out of 18 analysts rate it a buy. MKM Partners recently downgraded the stock to neutral from buy with a 12-month price target of $31. Jefferies had a buy rating in November with a price target of $32. Analyst Subhash Chandra says the fourth quarter guidance looked conservative. "Based on 18 gross completions, midpoint of 8,100 bopd appears conservative. We currently estimate production of 8,400 bopd. Our revised EPS estimate of $0.25 is considerably above consensus of $0.15."
The fund also owns Brigham Exploration [BEXP 27.18 -0.20 (-0.73%) ], which is in oil exploration in North Dakota and Montana, and is a pioneer of the Bakken shale oil deposit. “They are discovering a great deal of oil with a low cost position, so they are growing very quickly, and enjoying the appreciating price of the commodity,” Zibelli says.
I took a hard look at BEXP today and decided to raise my Fair Value estimate. Look for my new forecast model and how I calculate Fair Value under the Sweet 16 tab. Just click on the BEXP logo.
If oil price tops $100/bbl, Bud is going to be a very rich man. I would love to have his tax problems.
I've gone to Austin to meet with Bud Brigham and his son several times. I really like their whole team. It is really great to see good guys like this make it big. They took a huge risk investing so heavily in the Bakken but it has sure paid off. What a great American success story!
