BEXP sold down a bit after hours on 2/24. Analysts blamed it on the new Senior Debt Offering. MY TAKE is "So What!". The rate of return on the accelerated drilling program definitely justifies more debt. At today's oil prices, Brigham's proven reserves are worth over $1.5 Billion. Per company guidance, BEXP's production will grow by ~90% in 2011. I will have my updated Net Income and Cash Flow Forecast on the website late tomorrow. - Dan
Williston Basin Activity Accelerating to 12 Operated Rigs
Brigham announced that it plans to accelerate its Williston Basin operated rig count to 12 rigs by continuing to add an incremental operated rig every 4 months after adding its planned eighth rig in May 2011. Accelerating from eight to 12 operated rigs is anticipated to increase Brigham's drilling pace by approximately 44 gross wells per year, or approximately 29 net wells, once at the 12 operated rig level. Brigham anticipates reaching 12 operated rigs by September 2012.
Based on an accelerated level of activity in 2011, Brigham anticipates drilling approximately 66 net Williston Basin Bakken and Three Forks wells during 2011 as compared to approximately 39 net wells in 2010. Drilling capital is anticipated to be approximately $582.1 million in 2011, which incorporates a total per well cost of approximately $7.9 million plus a 10% budgeted overage.