Brigham Moves Forward with Williston Basin Activities
Brigham Exploration provided an update on its Williston Basin activity including initial production rates on two operated and seven non-operated wells brought on line since year-end. Brigham is also currently participating in 16 wells that are either drilling, completing or waiting on completion, including 11 non-operated wells in the Parshall / Austin area and one non-operated well in the Sanish area. In addition, Brigham expects to participate in three non-operated wells in the Parshall / Austin and Sanish areas that are expected to spud during May.
Wells Completed Since Year-End -- In late March, Brigham announced that the Olson 10-15 #1H was successfully placed on rod pump and was producing approximately 573 barrels of oil and 430 Mcf of natural gas per day. The well has produced over 46,600 barrels of oil and continues to perform strongly, with current production of approximately 359 barrels of oil and 269 Mcf of natural gas per day. Brigham owns an approximate 100% working interest and 79% net revenue interest in the well.
In addition to the Olson, the Whiting operated TTT Ranch 11-6H came on line in May at an initial production rate of 3,102 barrels of oil equivalent per day. Brigham owns an approximate 5% working interest and 4% net revenue interest in the well.
Wells Drilling, Completing or Awaiting Completion -- Brigham is currently participating in 16 wells that are either drilling, completing or waiting on completion. This includes 10 EOG Resources operated wells in the prolific Parshall / Austin area. In addition, Brigham is participating in the Windsor Weflen 1-4H, which is also located in the Parshall / Austin area, with an approximate 11% working interest. Finally, Brigham is participating in the Murex Clifford Gene #1-12H, which is located in the prolific Sanish area, with a 2% working interest. These wells are anticipated to be brought on line to production in the second and third quarters of 2009.
Non-Operated Parshall / Austin and Sanish Wells Anticipated to Be Spud in May -- Brigham anticipates participating in the drilling of one Parshall / Austin area well and two Sanish area wells during May.
Brigham Operated Bakken and Three Forks Activity -- Brigham has three operated Bakken and Three Forks wells that were drilled during the fourth quarter of 2008 that are awaiting completion. Brigham elected to delay the completion of these high working interest wells to benefit from warmer weather, lower costs and anticipated improvements in differentials and oil prices later in 2009. Since year end 2008, costs are estimated to have declined approximately 30% and oil prices have improved substantially.
Furthermore, differentials in the Williston Basin have improved and for Brigham averaged $7.49 per barrel for the month of April. Given the improved conditions and initiatives underway, Brigham expects to be in a position to start completing these wells -- the Strobeck 27-34 #1H, the Figaro 29-32 #1-H and the Anderson 28-33 #1-H -- around mid-year.
The Strobeck 27-34 #1H is a Three Forks well approximately two miles west of the Adix 25 #1 in the Ross area of Mountrail County. Brigham controls approximately 36,800 net acres in the Ross area. The Adix 25 #1 had an initial rate of approximately 892 Barrels of oil equivalent per day and the estimated ultimate recovery of the well is 432,000 barrels of oil equivalent. The Adix was a short 5,559' lateral with 11 fracture stimulations, whereas the Strobeck, like Brigham's recent Olson 10-15 #1H completion, is a long 9,031' lateral with 20 planned fracture stimulations. Brigham anticipates completing the Strobeck in June, with production to sales potentially fully impacting the third quarter. Early in the third quarter in the same area, Brigham expects to drill the lateral and complete the Anderson as a long lateral with 20 to 24 frac stages in the Bakken. The Anderson is approximately two miles west of Brigham's Carkuff Bakken discovery, which commenced production at an initial rate of 1,110 barrels of oil per day. Brigham estimates the Carkuff's ultimate recovery at approximately 411,000 barrels of oil equivalent. The Carkuff was a short 5,454' lateral with 12 frac stages.
Brigham controls approximately 105,000 net acres west of the Nesson Anticline in Williams and McKenzie counties, where Brigham completed the 20 frac stage Olson 10-15 #1H long lateral. The Olson was apparently the first long lateral completed in the basin with 20 frac stages, and the well has outperformed all of Brigham's operated Bakken and Three Forks wells drilled to date. During the third quarter Brigham expects to complete the Figaro 29-32 #1-H, which like the Olson has 20 planned frac stages in a 9,444' long lateral.
Southern Louisiana Well Hooked Up to Production -- Brigham successfully brought on line its third joint venture well with Clayton Williams Energy Inc. (NasdaqGS:CWEI - News). The Breton Sound SL 19054 #1 was completed from 60 feet of pay and was brought on line to production on May 5th. The well is currently producing 5.5 MMcf of natural gas per day with a flowing tubing pressure of 2600#. Brigham retains an approximate 50% working and 39% revenue interest in the well.
Bud Brigham, the Chairman, President and CEO, stated, "We're excited about the continued positive performance of our Olson 10-15 #1. Although it's early, we currently estimate the recoverable reserves at between 500,000 and 700,000 barrels of oil equivalent. Obviously, this well and our previously drilled Mrachek discovery in the same area are key wells that we believe positively impact the value of our 105,000 net acres west of the Nesson Anticline. We're also excited about the application of 20 fracture stimulation stages by other operators in other portions of the basin, and believe the application of this Brigham developed completion technique in the basin bodes well for the highly repeatable nature of our drilling program."
Bud Brigham continued, "We also continue to see significant activity in our acreage in the Parshall / Austin and Sanish areas. We have a significant backlog of wells awaiting completion, in particular EOG Resources operated wells, that we now anticipate will be completed in the near term given EOG's recent indications that activity is anticipated to ramp up in the summer. In addition, we expect our production volumes to be positively impacted late in the second and third quarters as EOG fully ramps up its previously curtailed production levels."
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