Brigham Exploration Announces Increased Bank Availability & Plans to Spud 13 Wells in Third Quarter.

AUSTIN, Texas--(Business Wire)--July 20, 1999--

Brigham Exploration Company (Nasdaq:BEXP) today announced that it has reached an agreement with its lenders to amend its bank credit agreement to provide for increased borrowing availability to fund its drilling program and operating activities planned for the balance of 1999.

The Company recently sold net production of approximately 2.8 million cubic feet of equivalent (MMcfe) natural gas per day and associated non-producing assets in two property divestitures for $17.1 million, which reduced outstanding borrowings under its credit facility to $48 million. The amended borrowing facility provides for current availability of $56 million, thereby providing the Company with $8 million in immediate incremental borrowing capacity.

The Company intends to utilize the increased bank borrowing availability, coupled with cash flow and a portion of the approximate $2 million remaining for drilling under its Duke project financing, to fund the drilling of 13 wells planned to spud during the third quarter and to fund operations and working capital requirements. The borrowing availability under the bank credit facility will be redetermined at January 31, 2000, based upon the value of the Company's reserves and cash flow.

Brigham expects to retain an average working interest of 45% in the 13 wells planned for the third quarter, of which the Company will operate 10. The wells target primarily natural gas prospects in its Anadarko Basin and onshore Gulf Coast core provinces within trends where Brigham has experienced recent 3-D based exploration success.

Approximately 55% of these drilling expenditures will test five "bright spot," or amplitude related, prospects in the onshore Gulf Coast, most of which are further validated by the Company's in-house "AVO" (amplitude variation with offset) analysis. These techniques potentially provide for the direct indication of natural gas and oil hydrocarbons.

Brigham's historical average drilling cost in its amplitude related prospects is $0.34 per proved developed producing Mcfe added. These 13 planned wells provide the Company with estimated net unrisked reserve potential of approximately 70 billion cubic feet of equivalent (Bcfe) natural gas. Net of the recently completed property divestitures, Brigham had estimated net total proved reserves at June 1, 1999, of 71 Bcfe.

In addition, Brigham estimates its current net daily production rate to be 19 MMcfe of natural gas, which represents an increase over the Company's 17.5 MMcfe per day average production rate during the first quarter 1999. Excluding net volumes attributable to reserves sold by Brigham effective June 1, the Company's average net daily first quarter 1999 production would have been 14.2 MMcfe per day.

As a result, Brigham's estimated current net daily production represents 33% growth over its adjusted first quarter 1999 volumes. This increase is primarily attributable to the successful completion of wells drilled during the first half of 1999 along with successful recompletion and workovers performed by the Company on certain producing wells.

Bud Brigham, the Company's chairman, CEO and president, stated, "We are pleased to have attained the increased borrowing availability under our revised bank credit agreement, which is reflective of a strong working relationship with our lenders during what has been a difficult period for our industry. Furthermore, we consider this expanded borrowing capacity to be a strong endorsement by our lenders of the quality of our drilling prospects and business strategy.

"Through the completion of a number of strategic initiatives to raise capital and reduce operating costs along with solid drilling performance during the first half of 1999, we have begun to generate tangible value in the form of reserves and cash flow from our vast inventory of quality 3-D prospects. For the remainder of the year our resources are intently focused on our drilling program, and we hope to continue the profitable drilling that we have achieved thus far in 1999.

"We estimate that our average drilling cost for the wells drilled in the first quarter 1999 was approximately $0.45 per proved developed Mcfe added. In the second half of 1999 we are targeting to drill a similar mix of prospects, representing a total of 18 gross and eight net wells with an estimated aggregate net unrisked reserve potential of 120 Bcfe, including the 13 wells which we intend to spud in the third quarter with our current bank availability."

Forward-Looking Statements 

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.

About Brigham Exploration

Brigham Exploration Company is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore domestic natural gas and oil provinces. For more information about Brigham Exploration, please visit the Company's Web site at www.bexp3d.com or contact Investor Relations at 512/427-3444.