Brigham Exploration Announces 306 Percent Reserve Replacement and $1.23 F&D Cost for 2001; $24 Million Capital Budget for 2002.Business Editors & Energy Writers AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas--(BUSINESS WIRE)--Feb. 14, 2002 Brigham Exploration Company (Nasdaq:BEXP) today disclosed its year-end 2001 proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. and announced its planned 2002 capital budget. Year-End 2001 Proved Reserves and Finding Costs Brigham's estimated net proved reserve volumes at Dec. 31, 2001, totaled 111 Bcfe, which represents a 17% increase from its 95 net Bcfe at year-end 2000. During 2001, Brigham added 29.2 Bcfe, primarily through drilling activities in its Anadarko Basin The Anadarko Basin is one of the most prolific natural gas reserves in North America, with ultimate gas production in excess of 100 trillion cubic feet of gas.[1] External links
References 1. , Texas Gulf Coast and West Texas 3-D seismic projects. Brigham's 2001 drilling program generated net proved reserve additions that replaced 306% of its 9.6 Bcfe of net volumes produced during the year. Approximately 80% of Brigham's year-end 2001 reserve volumes are natural gas and 49% are proved developed. The present value of Brigham's estimated proved reserves, calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SEC guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ("PV10% Value"), is $147 million at year-end 2001. Lower year-end oil and gas prices resulted in a decrease in the PV10% value for 2001 versus that reported for 2000. PV10% Value for 2001 was calculated using a Henry Hub Henry Hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX). It is a point on the natural gas pipeline system in Erath, Louisiana. It is owned by Sabine Pipe Line LLC. natural gas price of $2.57 per MMBtu and a West Texas Intermediate Sweet price of $19.84 per barrel versus a Henry Hub natural gas price of $10.42 per MMBtu and a West Texas Intermediate Sweet price of $26.83 per barrel that were used for the 2000 year-end. Capital expenditures incurred during 2001 totaled $36.0 million (including capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. G&A and interest), approximately 75% of which related to drilling activities. As a result, Brigham's average finding costs for reserves added in 2001 (including revisions to prior estimates) were $0.93 per Mcfe based only on drilling expenditures and $1.23 per Mcfe based on total capital expenditures. In addition, Brigham's three-year average finding costs for reserves added (including revisions to prior estimates) was $0.74 per Mcfe based only on drilling expenditures and $1.00 per Mcfe based on total capital expenditures.
Equivalent Reserves
-------------------
(Bcfe)
-------------------
2001 Beginning Reserves 95,387
Discoveries & Extensions 29,164
Revisions of Previous Estimates 141
Purchases of Reserves in Place 0
Sales of Reserves in Place (4,038)
Production (9,573)
-------------------
2001 Ending Reserves 111,081
===================
2002 Capital Expenditure Budget Brigham also announced the approval, by its board of directors, of a $23.7 million capital expenditure budget for 2002. The spending will be funded out of Brigham's discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. and liquidity under its subordinated credit facility. Depressed commodity prices led to a budgeted decrease in capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. of $12.3 million (34%) for 2002 when compared to 2001 capital spending. Brigham's budget is based on anticipated commodity prices and is subject to change if market conditions shift. The 2002 capital budget includes the planned drilling of 26 wells with an average working interest of 32%. Due to recent field discoveries, approximately 80% of Brigham's planned 2002 drilling expenditures are allocated to development drilling. In addition, approximately 95% of budgeted drilling expenditures will be directed to five geologic ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. plays where Brigham has recently completed 25 wells in 28 attempts. These focus plays include the Springer springer a North American term commonly used to describe heifers close to term with their first calf. and Hunton trends of the Anadarko Basin, the Vicksburg and Frio trends of the Texas Gulf Coast and the Horseshoe horseshoe, narrow plate, commonly of iron or steel, shaped to fit a horse's hoof and attached to the hoof by nailing it to the inner edge of the horny wall of the hoof. Atoll trend in West Texas.
Capital Expenditures ($MM)
--------------------------
2001 2002
Estimated Budget
--------- -------
Drilling $27.2 $15.6
Land and G&G 2.8 2.3
--------- -------
Total Exploration and Development $30.0 $17.9
Capitalized Costs and Other 6.0 5.8
--------- -------
Total Capital Expenditures $36.0 $23.7
========= =======
Management Comment Bud Brigham, the Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "Given the challenges in 2001, particularly with regard to managing higher service costs, we are extremely pleased with our 2001 finding costs. As was the case in both 1999 and 2000, in 2001 we made a significant field discovery with the Triple Crown Vicksburg Field. In addition, in late 2001, we announced our Providence Providence, city (1990 pop. 160,728), state capital and seat of Providence co., NE R.I., a port at the head of Providence Bay; founded by Roger Williams 1636, inc. as a city 1832. Frio Field discovery. Due to the planned development of these two new field discoveries, combined with the development of our prior Home Run and Mills Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. Field discoveries, we estimate that approximately 80% of our 2002 drilling expenditures will be developmental." Bud Brigham further stated, "Our Triple Crown and Providence Field discoveries occurred late in 2001. As a result, these new discoveries will not materially impact our production volumes and cash flow until 2002. Further, in 2002 we will benefit significantly from a number of operational enhancements, particularly in the drilling and completion of our Vicksburg wells in our Home Run and Triple Crown Fields, while also expending less capital per well due to lower drilling and completion costs. Therefore, given our recent field discoveries, and the success we're enjoying with our ongoing exploration drilling program, we expect 2002 to again provide our shareholders with growth in reserves, production volumes and cash flow." About Brigham Exploration Brigham Exploration Company (www.bexp3d.com) is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. domestic natural gas and oil provinces. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Disclosure Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that are based upon current expectations. Important factors that could cause actual results to differ materially from those in the forward-looking statements include risks inherent in exploratory drilling activities, the timing and extent of changes in commodity prices, unforeseen engineering and mechanical or technological difficulties in drilling wells, availability of drilling rigs, land issues, federal and state regulatory developments and other risks more fully described in the company's filings with the Securities and Exchange Commission. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion