Brigham Operations Update – Another Barn Burner

BEXP Reports Biggest Bakken IP Yet

Williston 25-36 #1H - East side of the Rough Rider area (where they have 104,100 net acres) in Williams County, North Dakota;  35% working interest (WI) 

Initial Production: 3,394 BOEpd

• 2,769 bopd
• 3.75 MMcfgpd
• 32 frac stages, highest number of stages so far. 

Prior to this well, BEXP's average IP for its previous 8 long lateral wells was 1,900 BOEpd. How they plot out:

Upcoming wells:

• State 36-1 #1H - (northeast Rough Rider, WI 15%) - should commence completion ops this week so they could have news here before Christmas.
• Jackson 35-34 #1H - (central Rough Rider, WI% 58) -  complete late December.
• Owan Nehring 27-34 #1H (western Rough Rider, 49% WI 49%)  - drilling.
• Liffrig  29-20 #1 H (Three Forks test in the Ross Area (where they have  36,200 net acres); 72% WI) - drilling.
• Jack Erickson 6 -31 #1 H (15% WI in Rough Rider near the Brad Olson well, west of the Jackson well) - expected to spud within days.  
• In 2010 BEXP plans to complete 24 net horizontal wells in the Williston Basin.

Nutshell: First well on the eastern side of Rough Rider and it comes in very large. Stock should move well on the news and apparently BEXP plans to keep up the barrage of 1 well press releases so it could have legs into next week at least. Nice if you can keep it up but it also raises the bar on each well and will contribute to the volatility in the name down the road so I'd suggest they get back to releasing news after they have 2 or 3 to talk about. Also, give us some 30 and 60 day rates guys as those little charts in the presentation are beyond my intern's ability to accurately discern.  This snapshot has been added to the Reports page and the Catalyst Watch will be updated shortly. I continue to hold the January $10 and $12.50 strike calls as well as the common stock here. 

Other Thoughts on this News Watch:

• This should also be very welcome news for (USEG) as this is their 5th well under the JV with BEXP and the stock has recently been pulled lower by its own secondary.
• NFX is drilling in eastern Rough Rider as well, it's Chanel 1-33H, could have news soon here.