Increased drilling program in 2011 should bring value forward considerably quicker, says Jefferies
Brigham Exploration Co. (NASDAQ: BEXP) says it has completed 5 high-rate Bakken shale wells at an average early 24-hour peak flow back rate of 3,085 barrels of oil equivalent. To date, Brigham has completed 45 consecutive high frac stage, long lateral Bakken and Three Forks wells in North Dakota at an average early 24-hour peak flow back rate of 2,810 barrels of oil equivalent.
Brigham's accelerated development of its acreage in North Dakota and Montana is proceeding with 3 operated rigs drilling in Rough Rider, 3 operated rigs drilling in Ross, and 1 operated rig drilling in Richland County, Montana. Brigham's eighth operated rig is currently expected to arrive in May 2011.
Brigham currently has 2 wells flowing back, 2 wells fracing, and 8 wells waiting on completion. Brigham anticipates fracing the Swindle 16-9 #1H located in Roosevelt County, Montana early in the first quarter 2011. Shortly thereafter, Brigham will frac the Johnson 30-19 #1H, located in Richland County, Montana.
In the first quarter 2011, Brigham expects to add additional fracture stimulation capacity thereby providing access to two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. At that time, Brigham estimates that about 8 wells per month will be fracture stimulated and brought on line to production.
Brigham chairman and CEO Bud Brigham said, “2010 has been a year of incredible transformation as we rapidly increased our operated rig count from 4 to 7 rigs, and we’ve seen our production, and most importantly our high-value crude oil production, grow to record levels.”
Revisit OGFJ editor Don Stowers' one-on-one interview with Bud Brigham from the December 2008 issue.
He added, “We expect to add our eighth rig in May 2011 and to have 2 fully dedicated frac crews running in the first quarter 2011. In the interim, we’re actively working to develop an executable plan to increase our rig count further in order to accelerate drilling in one of the most exciting and economic oil resource plays in the United States. Furthermore, we are optimistic that we can add to our already extensive development drilling inventory with our Montana Bakken and Rough Rider Three Forks drilling and completions during the first half of 2011. During 2011 we also anticipate the potential confirmation of the opportunity to drill 4 or more wells per spacing unit with our infill drilling program, striving towards our goal of ‘No Oil Left Behind.’”
The company's plan to accelerate its 2011 activity plans is a positive, according to a December 15 research note from Jefferies & Co. Inc. "Increased drilling program should bring value forward considerably quicker, allowing for an accelerated conversion of probables to proved," noted the firm.
Source: Brigham Exploration Co., Jefferies & Co. Inc.
