[GRAPHIC OMITTED] NEWS RELEASE
FOR IMMEDIATE RELEASE
BRIGHAM EXPLORATION REPORTS GULF COAST FRIO DISCOVERY AND DAILY PRODUCTION
GROWTH FROM 2000 DRILLING PROGRAM
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Austin, TX -- (Business Wire) - June 19, 2000 -- Brigham Exploration
Company (NASDAQ:BEXP) today announced that it has recently completed and brought
on production a Lower Frio bright spot discovery in its Southwest Danbury
Project in Brazoria County, Texas. In addition, Brigham provided an update
regarding its 2000 drilling program and announced substantial growth in its
daily production volumes.
FRIO DISCOVERY
Continuing its exploration and development efforts targeting Frio 3-D
seismic-based amplitude prospects, Brigham recently drilled and completed a well
that targeted a 3-D amplitude-supported fault block adjacent to Brigham's 1998
Nold Gas Unit #1 and 1999 Renn Gas Unit discoveries in Brazoria County, Texas.
The successfully completed well, in which Brigham retains a 53% net revenue
interest, encountered 31 feet of net pay in the Lower Frio section at a depth of
approximately 12,560 feet. The well is currently flowing to sales at a rate of
5.3 MMcf of natural gas and 75 barrels of condensate per day with a flowing
tubing pressure of 6,100 pounds per square inch. Brigham anticipates producing
the well at approximately 6.5 MMcfe per day, or approximately 3.5 MMcfe per day
net to its revenue interest. Brigham has identified and leased eleven additional
3-D seismic amplitude-supported prospects in the Upper and Lower Frio sections
in its Southwest Danbury Project, one of which is an adjacent prospect that is
enhanced by this most recent discovery. Brigham currently plans to drill three
additional tests in this project during the second half of 2000.
OPERATIONAL ACTIVITY UPDATE
In Brigham's Home Run Field in Brooks County, Texas, the Palmer State
#3 well was spud in March as the first offset to Brigham's Palmer State #2 well
that confirmed the significant Lower Vicksburg discovery. As planned, the Palmer
State #3 encountered the primary Vicksburg objectives approximately 135 feet
higher on structure than the currently producing Palmer State #2 well, resulting
in higher reservoir quality sands. Completion operations were commenced on the
Palmer State #3 well in late May, and initial production is expected by the end
of June with the full stream of commingled production expected some time in
July. Given the improved quality of the reservoirs encountered in the Palmer
State #3 well relative to the currently producing Palmer State #2, Brigham
anticipates an initial production rate from the Palmer State #3 that should be
at least comparable to the Palmer State #2 well. The Palmer State #2 well began
producing at a commingled rate of approximately 16 MMcfe in February 2000, or
approximately 4.7 MMcfe net to Brigham's 29% net revenue interest. To date the
Palmer #2 well has produced over 1.5 Bcfe, roughly paying out the cost of the
well three months after commingled completion. Brigham expects the next
development well to spud in early July.
Also in its Gulf Coast province, Brigham has spud an offset to its 1998
Dinn #1 discovery well in its Caliente Project in Duval County, Texas. Brigham
retains a 50% working interest in this test, which is a confirmation well on a
structure with gross unrisked reserve potential of approximately 60 Bcfe. The
Dinn #2 is currently drilling at a depth of approximately 10,500 feet, and is
expected to reach total depth of 14,000 feet by late July.
In the Anadarko Basin, Brigham's first quarter 2000 Springer discovery
was brought on line in early May and continues to produce at a pipeline capacity
curtailed rate of approximately 3.5 MMcf of natural gas and 350 barrels of oil
per day, or approximately 3.2 MMcfe per day net to Brigham's revenue interest.
Brigham anticipates expanded pipeline capacity in July, at which time it plans
to increase the producing rate of this well to approximately 5 MMcf and 450
barrels per day, or approximately 4.4 net MMcfe per day. Based on current
producing rates, this well is expected to pay out the drilling costs incurred by
the end of June, or less than two months after completion. Brigham currently
plans to spud an offset well to this discovery during the third quarter.
While increased industry activity is resulting in drilling rig
availability constraints in some instances, Brigham plans
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to spud at least ten wells by the end of the third quarter, including a number
of high impact tests in both the Anadarko Basin and the onshore Gulf Coast.
PRODUCTION VOLUME GROWTH
Brigham estimates its current net daily production to be approximately
21 MMcfe per day, which represents a 24% increase from its average production
rate during the first quarter. In addition, Brigham expects to add approximately
6 net MMcfe per day by the end of July upon completion of commingling operations
at the Palmer State #3 and increased pipeline capacity at its Springer discovery
in the Anadarko Basin. Brigham estimates that its initial $4.8 million of
drilling expenditures from its approximate $20 million 2000 drilling program
will have generated 10 to 12 MMcfe per day of initial production volumes net to
Brigham's revenue interest by the end of July.
MANAGEMENT COMMENT
Bud Brigham, President and CEO, commented, "Our recently completed Nold
Gas Unit discovery is another positive indication regarding our inventory of 3-D
seismic amplitude-related prospects in the Frio trend, and, like our first
quarter Springer discovery, it enhances other adjacent drilling opportunities.
Due to these and other discoveries, our early 2000 drilling program has been
highly productive. This success, further enhanced by high commodity prices, has
resulted in an average payout for our early 2000 drilling program, including dry
holes, of approximately four months. In addition, every $1 million we've
invested in drilling in 2000 has generated approximately 2.5 MMcfe per day in
initial net production volumes for Brigham. We believe these early results
demonstrate the potential production volume impact inherent in the remainder of
our estimated $20 million drilling program planned for this year. While we
expect to continue our sequential growth in quarterly production volumes in the
second quarter, anticipated losses from our early 1999 hedging activities will
negatively impact cash flow during the second quarter. Fortunately, this impact
is temporary. Through a combination of our growing production volumes,
accelerating and high impact drilling program, and improving pricing
realizations, the third quarter is shaping up to be a potentially exciting
quarter for our company."
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 domestic
natural gas and oil provinces.
FORWARD LOOKING STATEMENTS 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.
Contact: Christopher A. Phelps, Vice President - Finance & Strategic Planning
(512) 427-3300/[email protected]
