Brigham Exploration Provides Third Quarter 2000 Operational Update.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)--Nov. 7, 2000 Brigham Brigham may refer to the following: Place:
References 1. . Brigham intends to release its financial results for the third quarter 2000 on Wednesday Wednesday: see week. , Nov. 8, after the close of market trading, and management will host a conference call to discuss these results on Thursday, Nov. 9, at 9:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. . Details regarding the conference call are provided at the end of this release. Third Quarter 2000 Operational Results Brigham spud five wells during the third quarter in which it retained an aggregate average working interest of 75%. Three of these wells have been completed or are completing, one has been temporarily abandoned and one is currently drilling. During the first nine months of 2000, Brigham participated in the drilling of 18 wells with an aggregate average 50% working interest. Of these wells, 14 have been completed or are completing, two have been plugged, one has been temporarily abandoned and one is currently drilling. As a result, Brigham has achieved an 88% completion rate in its year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. 2000 drilling activity. Brigham estimates its net production volumes during the third quarter of 2000 were 1,824 million cubic feet of equivalent natural gas (MMcfe), an increase of 15% over net volumes produced during the second quarter of 2000 and a 10% increase over the third quarter of 1999. Brigham's average net daily production volumes for September were approximately 21 MMcfe. The following provides a review of Brigham's significant operational activity during the third quarter: Bearcat Project -- Springer springer a North American term commonly used to describe heifers close to term with their first calf. Trend in Grady County Grady County is the name of two counties in the United States:
During the third quarter 2000, Brigham participated in the drilling of a well to confirm a potentially large Springer bar field discovery in its Bearcat Project. The Pitchford No. 1 (32% working interest) reached a total depth of 15,140 feet and logged approximately 31 feet of pay in the targeted Britt britt n. Variant of brit. Noun 1. britt - the young of a herring or sprat or similar fish brit young fish - a fish that is young 2. section. Wireline logs for the Pitchford No. 1 well indicate significant porosity porosity /po·ros·i·ty/ (por-os´it-e) the condition of being porous; a pore. po·ros·i·ty n. 1. The state or property of being porous. 2. improvement relative to Brigham's Nix No. 1, which was the exploratory test of this prospect drilled earlier in 2000. Initial perforations from this zone produced at an unstimulated rate of approximately 910 Mcf of natural gas and 20 barrels of condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. per day, or approximately 1 MMcfe total, through 5 1/2" drill casing. The operator recently fracture fracture, breaking of a bone. A simple fracture is one in which there is no contact of the broken bone with the outer air, i.e., the overlying tissues are intact. In a comminuted fracture the bone is splintered. stimulated this Britt interval and the well is currently flowing through the 5 1/2" drill casing on a 12/64" choke (jargon) choke - To fail to process input or, more generally, to fail at any endeavor. E.g. "NULs make System V's "lpr(1)" choke." See barf, gag. at a rate of approximately 2.2 MMcf of natural gas and 140 barrels of condensate per day, or approximately 3 MMcfe per day, with a flowing tubing pressure of 2,600 pounds per square inch Noun 1. pounds per square inch - a unit of pressure psi pressure unit - a unit measuring force per unit area (psi PSI - Portable Scheme Interpreter ). Brigham anticipates improved deliverability once production tubing Production tubing is a tubular used in a wellbore through which production fluids are produced. Production tubing is run into the drilled well after the casing is run and cemented in place. is run later this week. Brigham is also currently participating in the McCasland Farms No. 1 (21% working interest), an offset to the Pitchford No. 1 that is currently drilling at a depth of approximately 6,400 feet, to further develop the field discovery. An additional offset, in which Brigham expects to retain a 37% working interest, is planned to spud early in the first quarter of 2001. Brigham currently owns over 2,500 net acres in nine sections over the prospect area, and anticipates participating in up to eight additional wells to fully develop the field. Diablo di·ab·lo adj. Diable. [Alteration (influenced by Spanish diablo, devil) of diable.] Project -- Vicksburg Trend in Brooks County, Texas Brooks County is a county located in the U.S. state of Texas. As of 2000, the population is 7,976. Its county seat is Falfurrias6. Brooks is named for James Abijah Brooks, a Texas Ranger and legislator. Geography According to the U.S. In the Home Run Field, Brigham began producing the Palmer State No. 3 development well in early August at an initial rate of 12.3 MMcf of natural gas and 450 barrels of condensate per day, or 15 MMcfe total (4.4 MMcfe net to Brigham's 29% revenue interest), with a flowing tubing pressure of 5,650 pounds per square inch (psi). This well averaged approximately 10.8 MMcfe per day (3.1 net to Brigham's interest) during the third quarter and is projected to reach payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. by the first quarter of 2001, approximately six months after initial production. Brigham recently spud the next development well in the Home Run Field, the Palmer State No. 4, which is an updip offset to the previously drilled Palmer State No. 2. The Palmer No. 4 is currently drilling at a depth of approximately 7,600 feet, and the well should reach total depth in the targeted Lower Vicksburg objectives in December. An additional development well, the D.J. Sullivan No. C-25, is expected to spud by mid-December, and should test the crest crest, in feudal livery, an ornament of the headpiece that afforded protection against a blow. The term is incorrectly used to mean family coat of arms. Crests were widely used in the 13th cent. of the field structurally high to both the Palmer State No. 2 and No. 3 wells. Brigham retains 34% working interests in each of these fourth quarter development wells. Also in its Diablo Project, Brigham previously expected to spud its initial exploratory test of the adjacent high potential Mariposa fault block in October; however it now plans to spud this well in the first quarter of 2001. Southwest Danbury Project -- Frio Trend in Brazoria County, Texas Brazoria County is a county in the U.S. state of Texas located on the Gulf Coast within the Houston–Sugar Land–Baytown metropolitan area. Its county seat is Angleton, and its largest city is Pearland. As of the 2000 U.S. Brigham's second quarter 2000 Nold Gas Unit No. 1S discovery began producing in late June, paid out in October, and is currently producing over 6 MMcfe per day (3 MMcfe net to Brigham's 50% revenue interest). Brigham temporarily curtailed production from this well to approximately 5 MMcfe per day in July and August, which negatively impacted third quarter production volumes. Expanding upon Noun 1. expanding upon - adding information or detail expansion step-up, increase - the act of increasing something; "he gave me an increase in salary" this and other previous discoveries in the Southwest Danbury Project, Brigham operated the drilling of two additional Frio tests during the third quarter. The Renn Gas Unit No. 2 (79% working interest) tested an amplitude-supported structure located updip from Brigham's Renn Gas Unit No. 1 and Nold Gas Unit No. 2 Frio discoveries. The Renn Gas Unit No. 2 reached total depth in late October, and logged 23 feet of potential natural gas pay in three separate Lower Frio intervals. Completion operations are currently under way, and Brigham hopes to have the well producing to sales within the next several weeks. The second well, the Sebestia Cloud No. 1 (100% working interest), was an offset location targeting nine potential Frio sands on the same productive fault as a previous Brigham discovery. Brigham encountered substantial operational difficulties due to lost drilling circulation at a depth of approximately 4,100 feet, prior to reaching the 11,840 foot total depth planned for the well. Given these drilling difficulties and the potential for significant additional costs, Brigham elected to temporarily abandon this well, and is formulating an operational plan to re-enter re·en·ter also re-en·ter v. re·en·tered, re·en·ter·ing, re·en·ters v.tr. 1. To enter or come in to again. 2. To record again on a list or ledger. v.intr. the well to drill the target objectives during the first quarter of 2001. Huskie hus·kie n. Variant of husky3. Project -- Watonga Chickasha Springer Trend in Blaine County Blaine County is the name of four counties in the United States:
Brigham's second quarter 2000 Price No. 17-2 discovery (71% working interest) continues to produce at a pipeline-curtailed rate of 3.4 MMcf of natural gas and 200 barrels of condensate per day. Brigham previously expected to access additional pipeline capacity during the third quarter. A contract to expand the pipeline capacity has recently been executed and Brigham currently expects additional capacity to be realized some time during the fourth quarter. Upon expansion of pipeline capacity, Brigham anticipates increasing production from the Price No. 17-2 well to a rate of approximately 5 MMcf of natural gas and 300 barrels of condensate per day, or approximately 3.9 MMcfe per day net to Brigham's 57% revenue interest. The first offset location to this recent Springer discovery, in which Brigham retains a 14% working interest, reached total depth on Nov. 3 and is currently being completed. This well logged six feet of potential natural gas pay with greater than 14% porosity, and completion results are expected in the next several weeks. A second offset well, in which Brigham expects to retain an approximate 50% working interest, is planned to spud during the fourth quarter of 2000. Wildcat wildcat, common name of two Old World cats, the European wildcat, Felis sylvestris, of Europe and W Asia, and the African wildcat, or kaffir cat, F. lybica, of Africa and Asia. Project -- Hunton Trend in Wheeler County, Texas Wheeler County is a county located in the U.S. state of Texas. In 2000, its population was 5,284. Its county seat is Wheeler6. Officially formed in 1876, the county is named for Royal Tyler Wheeler, a chief justice of the Texas Supreme Court. In July 2000, Brigham spud a high potential Hunton test that offsets a currently producing well that has produced over 15 Bcfe to date. Brigham operates the well and retains an approximate 64% working interest in this step out location. The prospect targets a large 3-D imaged fault block with up to 175 Bcfe of gross unrisked reserve potential. Brigham expects to reach total depth of approximately 24,000 feet within the next several weeks, after which logging and testing will be commenced. Caliente Project -- Wilcox Trend in Duval County, Texas Duval County is a county located in the U.S. state of Texas. In 2000, its population was 13,120. It is named for Burr H. Duval, a soldier in the Texas Revolution who died in the Goliad Massacre. The seat of the county is San Diego6. During the third quarter, Brigham participated in the completion of an Expanded Upper Wilcox discovery in its Caliente Project. The Dinn No. 2 began producing to sales in mid-August at a rate of approximately 2 MMcf of natural gas per day (740 Mcf net to Brigham's 37% revenue interest) at 3,000 psi flowing tubing pressure. Production volumes subsequently declined, and the well is currently producing at a stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. rate of approximately 600 Mcf per day (220 Mcf net to Brigham's interest). Also in its Caliente Project, Brigham retained a 50% working interest in a high potential Wilcox exploratory test, the Brigham-operated Lopez Mineral Trust No. 2. After reaching total depth in late September, this well encountered approximately 25 net feet of apparent pay in the Wilcox. Subsequent to fracture stimulating this potential pay interval, the Lopez Mineral Trust No. 2 well was testing at a rate of approximately 500 Mcf of natural gas per day. Brigham is currently negotiating right of ways and pipeline connections for production to sales. Management Comment Bud Brigham, the Company's chairman, 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. and president, stated, "Our most positive operational development is the apparent confirmation of a remarkably large field discovery in our Bearcat Project in the Anadarko Basin. This reservoir appears to cover an area measuring approximately nine miles Nine Miles is a reggae "band" started by Yoshiaki Manabe (真鍋吉明) of The Pillows. The name Nine Miles comes from the name of the town in which Bob Marley grew up in Jamaica.
"This discovery demonstrates the potential that we knew existed for substantial field discoveries in the Anadarko Basin and, like our 1999 Home Run Field discovery, it is expected to provide a number of offsetting development drilling opportunities." Bud Brigham further stated, "On the other hand, we've been frustrated frus·trate tr.v. frus·trat·ed, frus·trat·ing, frus·trates 1. a. To prevent from accomplishing a purpose or fulfilling a desire; thwart: by delays in getting an increase in pipeline capacity for our Price discovery, in getting our discoveries producing to sales, and in getting new wells drilled. These delays slowed our anticipated growth in production volumes. While we've only had two dry holes in 18 attempts thus far in 2000, we've been disappointed by a few of our recent discoveries, particularly the Dinn No. 2 and the Lopez Mineral Trust No. 2 in our Caliente Project, that have not performed to our expectations. "Near term, the new and accelerating developmental drilling program provided by our Bearcat Project discovery, the planned increase in development activity in our Home Run Field, combined with ongoing exploration drilling opportunities provides our company with excellent potential for the addition of meaningful production volumes and reserves." Conference Call Information Management will host a conference call to discuss Brigham's financial and operational results for the third quarter ended Sept. 30, 2000, with investors, analysts and other interested parties on Thursday, Nov. 9, at 9:00 a.m. Central time. Brigham plans to issue a press release regarding its third quarter 2000 financial results after the close of market trading on Wednesday, Nov. 8. Details regarding the upcoming conference call include: Date & Time: Thursday, Nov. 9, at 9:00 a.m. CST Host: Bud Brigham -- Chairman, CEO and President Dial-In Number: 888/673-1385 Reservation Number: 16825560 Webcast Address: www.streetevents.com Webcast Replay Available Through: Wednesday, Nov. 22, at 5:00 p.m. CST 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.
BRIGHAM EXPLORATION COMPANY
DRILLING ACTIVITY BY REGION
Q3 2000 Q1 - Q3 2000
---------------- ---------------
Gross Net WI% Gross Net WI%
----- --- --- ----- --- ---
Anadarko Basin Wells Completed 0 0.0 0% 5 2.7 53%
P&A Wells 0 0.0 0% 0 0.0 0%
Wells Drilling 1 0.7 69% 1 0.7 69%
----- --- --- ----- --- ---
Total Wells Spud 1 0.7 69% 6 3.3 56%
===== === === ===== === ===
Completion Rate 0% 0% 100% 100%
Gulf Coast (a) Wells Completed 3 2.1 69% 9 3.6 40%
P&A Wells 0 0 0% 2 1.0 50%
Wells Drilling 1 1.0 100% 1.0 1.0 100%
----- --- --- ----- --- ---
Total Wells Spud 4 3.1 77% 12 5.6 47%
===== === === ===== === ===
Completion Rate 75% 68% 75% 64%
West Texas Wells Completed 0 0.0 0% 0 0.0 0%
P&A Wells 0 0.0 0% 0 0.0 0%
Wells Drilling 0 0.0 0% 0 0.0 0%
----- --- --- ----- --- ---
Total Wells Spud 0 0.0 0% 0 0.0 0%
===== === === ===== === ===
Completion Rate 0% 0% 0% 0%
Overall Wells Completed 3 2.1 69% 14 6.3 45%
P&A Wells 0 0.0 0% 2 1.0 50%
Wells Drilling 2 1.7 85% 2 1.7 85%
----- --- --- ----- --- ---
Total Wells Spud 5 3.8 75% 18 9.0 50%
===== === === ===== === ===
Completion Rate 100% 100% 88% 86%
(a) Includes three wells drilled and completed during the first quarter 2000 in the Esperson Dome dome, a roof circular or (rarely) elliptical in plan and usually hemispherical in form, placed over a circular, square, oblong, or polygonal space. Domes have been built with a wide variety of outlines and of various materials. Project in which Brigham retains an approximate 1.5% net profit interest before project payout and a variable 12%-20% back-in working interest after project payout depending upon attainment of certain investment return thresholds. |
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