UPDATE 4-Brigham shares up on strong results from 2 Bakken wells

* Jack Cvancara flows at peak rate of 5,035 boepd

* Tjelde flows at peak rate of 3,171 boepd

* To complete 1st Bakken test in Montana in Q2 or early Q3

* Shares rise as much as 11 pct
(Adds graphic, updates share movement)

By Adveith Nair

BANGALORE, May 26 (BestGrowthStock) – Oil and natural gas explorer
Brigham Exploration Co (BEXP.O: ) on Wednesday reported positive
initial results from two more wells in its core Bakken shale
acreage, sending its shares up as much as 11 percent.

The company said its Jack Cvancara 19-18 and Tjelde 29-32
wells flowed at peak rates of 5,035 barrels of oil equivalent
per day (boepd) and 3,171 boepd respectively, during the first
24 hours.

“These results continue to affirm the validity of Brigham’s
Bakken acreage and the fact that they are getting increasingly
better at finding the sweet spots,” Natixis Bleichroeder
analyst Curtis Trimble said by phone.

Shares of the company were up 7 percent at $16.45, after
touching an intra-day high of $17.10. The stock, which is up
more than six-fold from a July 2009 year-low, was among the
highest percentage gainers Wednesday morning on Nasdaq.

Brigham is heavily focused on the Bakken shale play, one of
the few “oily” shales in the continental United States.

Other companies that operate in the region include Denbury
Resources Inc (DNR.N: ), Whiting Petroleum Corp (WLL.N: ), EOG
Resources (EOG.N: ), Continental Resources Inc (CLR.N: ) and XTO
Energy (XTO.N: ).

Analysts say Brigham has demonstrated better use of
technology than some of its peers, and strong well results from
the Bakken have sent Brigham’s stock rocketing over the past
year. [ID:nSGE62F0GG]

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Graphic on Brigham’s share movement and key Bakken

milestones over the past year: http://r.reuters.com/duq56k

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“They certainly have been at the forefront of pushing the
technological envelope, in terms of increasing the number of
fracture stimulation stages,” Trimble said.

More frac stages typically lead to higher reserves.

Frac job, or formation fracturing, is a method of
stimulating production by opening new flow channels in the rock
surrounding a production well.

“They continue to refine their drilling and completion
techniques, and bringing on wells that are either at record
levels or close to record levels of initial production,”
Trimble added.

Brigham has a near 83 percent working interest in the Jack
Cvancara, which was completed with 36 frac stages, and about 77
percent working interest in the Tjelde, which was completed
with 30 frac stages.

“We have now completed the two highest initial production
rate Bakken wells in the Williston Basin, with the strong
performance of the Sorenson and Jack Cvancara,” Chief Executive
Bud Brigham said in a statement.

The Jack Cvancara has the second highest initial rate for a
Bakken well in the Williston Basin after Brigham’s Sorenson
29-32, which was completed with an early 24-hour peak flow back
rate of 5,133 boepd, Brigham said.

The company, which last month forecast sequentially higher
second-quarter production of between 6,200 boepd and 6,800
boepd [ID:nSGE63S0N7], added that it expects to complete its
first Bakken test in Montana in the second quarter or early in
the third quarter.

Natixis Bleichroeder’s Trimble said while Wednesday’s
results would like not provide much upside to second-quarter
results, the company could see gains from its stellar well
results over the last few months, in the second half of the
year.

“Any time we talk about oil wells onshore in the U.S.

Stock Market Research
producing in excess of 5,000 boepd, that certainly portends
future benefits for production.”
(Reporting by Adveith Nair in Bangalore; Editing by Vinu
Pilakkott and Maju Samuel)

UPDATE 4-Brigham shares up on strong results from 2 Bakken wells