Brigham Exploration Announces Completions, Elevated Production Volumes and Updates Operations
December 03 2008 - 11:02AM
Marketwired
Brigham Exploration Company (NASDAQ: BEXP) announced new
completions including its Main Pass discovery at an initial rate of
approximately 15.2 MMcfe per day. As a result, Brigham's current
net daily production has reached a peak of just over 40 MMcfe per
day, approximately 45% above Brigham's average daily production for
the third quarter of 2008.
Southern Louisiana Main Pass Completion -- Brigham has
successfully completed its Main Pass SL 18826 #1 well at a rate of
approximately 15.2 MMcfe per day. Brigham owns a 50% working and
39% revenue interest in the well, with Clayton Williams Energy Inc.
(NASDAQ: CWEI) retaining a 50% working interest.
Brigham has completed four wells in five attempts in Southern
Louisiana in 2008, two of which are now producing to sales.
Brigham's Chandeleur Sound SL 9312 #1 discovery is expected to
commence production to sales in early January 2009 at an initial
rate of between 2.5 and 4.0 MMcfe per day, while Brigham's Breton
Sound SL 19054 #1 discovery should commence production at an
initial rate of 5 to 7 MMcfe per day during February 2009. Brigham
retains a 50% working and 38% revenue interest in both completing
wells. The company expects to commence its fifth Southern Louisiana
test, Tiger Pass SL 18877#1, in late December. This well targets a
Miocene amplitude at a depth of approximately 8,200 feet, with
results expected by February 2009.
Williston Basin Completions -- In the Parshall/Austin area,
Brigham participated with a 12.4% working interest in the recently
completed EOG Austin 19-30H, which commenced production from the
Bakken in late November at an initial rate of approximately 2,457
barrels of oil and 937 Mcf of natural gas per day.
In the North Stanley Area of Mountrail County North Dakota,
Fidelity Exploration & Production is commencing the fracture
stimulation of the Grove 11-36H. Brigham retains a 25% working
interest in the Grove 11-36H, a Three Forks test approximately
three miles west of Brigham's Johnson 33-1H Bakken discovery.
Also in Mountrail County in the Ross Area, Brigham is currently
drilling the Strobeck 27-34 #1H, a planned 8,500' long lateral
Three Forks test with twenty fracture stimulation intervals.
Brigham retains a 59% working interest in the Strobeck 27-34 #1H,
which is located less than two miles to the west of the Adix 25
#1H. The Adix 25 #1H was a short lateral Three Forks completion
with eleven fracture stimulations, which commenced production in
October at 892 barrels of oil equivalent per day. The Strobeck
27-34 #1H is expected to reach total depth by mid December, with
results expected in January.
Also in the Ross Area, Brigham recently commenced the Anderson
28-33 #1H with a 36% working interest. Brigham plans to fracture
stimulate twenty intervals in the 8,500' long lateral of the
Anderson 28-33 #1H, with results expected in February 2009. The
Anderson 28-33 #1H is located less than 2 miles to the west of the
Brigham operated Carkuff 22 #1H, which subsequent to the fracture
stimulation of twelve intervals in a short lateral commenced
production in July at an initial rate of approximately 1,110
barrels of oil per day.
West of the Nesson Anticline in Williams and McKenzie Counties
North Dakota, in the general area of Brigham's previously announced
Mrachek 15-22 #1H Bakken discovery, Brigham is preparing to
fracture stimulate twenty intervals in the Olson 10-15 #1H and
Figaro 29-32 #1-H wells. Brigham retains a 100% working interest in
the Olson 10-15 #1H, and a 90% working interest in the Figaro 29-32
#1-H. Both were drilled as long laterals, relative to the Mrachek
15-22 #1H which was a shorter lateral (5,216') with seven fracture
stimulations. The Mrachek 15-22 #1H commenced production at 727
barrels of oil equivalent per day. The fracture stimulation of
twenty intervals in the Olson 10-15 #1H is expected to commence by
mid December, while the fracture stimulation of twenty intervals in
the Figaro 29-32 #1-H is expected to commence in early January of
2009.
Bud Brigham stated, "Hopefully as early as next week we will
commence stimulating the Olson 10-15 #1H, which will be the first
of four consecutive long laterals we'll be completing with twenty
planned fracture stimulations. Given the significant improvements
we've experienced in production performance as we've increased the
number of fracture stimulations, we have high expectations for
these wells. These four completions should add to our growing
Bakken and Three Forks Williston Basin production volumes.
"Importantly, given the current commodity price environment, we
expect drilling and completion costs to come down significantly
over the next three to six months. As a result, we currently plan
to take a pause in our operated drilling program, including
dropping both our operated Williston Basin rigs in the first
quarter of 2009, until costs are more commensurate with current
commodity prices. However, given the strong rates of return
experienced in the Parshall/Austin and Sannish field areas, we
expect our non-operated drilling to continue at a steady pace.
"Given our current peak rate production of over 40 MMcfe per
day, we expect our fourth quarter production to average in the
upper end of our previously forecasted range of 33 to 37 MMcfe per
day. We will benefit from our elevated production volumes as we
enter 2009, which we believe will position us to generate growth in
our 2009 production volumes over those in 2008, even with the
reduced level of capital expenditures. Although we plan to approach
2009 conservatively, we believe that our internally generated cash
flow, supported by our hedge position, as well as the undrawn
capacity available to us under our senior credit facility, provides
us with ample flexibility to resume our operated drilling program,
possibly around mid-year. Importantly, we believe that the Bakken
and Three Forks are top tier domestic resource plays, and as such
we expect to realize a cost structure that will provide attractive
margins and good rates of return even at lower commodity
prices."
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 for and develop
onshore domestic oil and natural gas reserves. 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
include 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
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