SOURCE: Brigham Exploration Company

October 21, 2009 21:30 ET

Brigham Exploration Company Prices Offering of 16,000,000 Shares of Common Stock at $10.50 per Share

AUSTIN, TX--(Marketwire - October 21, 2009) - Brigham Exploration Company (NASDAQ: BEXP) announced it has priced its offering of 16,000,000 shares of common stock at a public offering price of $10.50 per share. Net proceeds from the offering are expected to be used primarily to accelerate the development of Brigham's Williston Basin acreage position by drilling 24 net horizontal wells in 2010, which will target both the Bakken and Three Forks objectives. Pending use of the net proceeds, Brigham intends to use a portion of the net proceeds from the offering to repay the indebtedness outstanding under its senior credit facility. As of September 30, 2009, $110 million was outstanding under the senior credit facility. Brigham intends to re-borrow under its senior credit facility in 2010 to fund exploration and development expenditures as they are incurred. The offering is scheduled to close October 27, 2009.

In connection with the offering, Credit Suisse Securities (USA) LLC and Jefferies & Company, Inc. are acting as joint book-running managing underwriters and Johnson Rice & Company, Raymond James, RBC Capital Markets, Howard Weil Incorporated and Pritchard Capital Partners, LLC are acting as co-managing underwriters for the offering. Brigham has granted the underwriters a 30-day option to purchase up to 2,400,000 additional shares to cover over-allotments, if any.

The offering is being made only by means of a prospectus and related prospectus supplement, which has been filed with the Securities and Exchange Commission. A copy of the prospectus and prospectus supplement relating to the offering may be obtained from the offices of: Credit Suisse Securities (USA) LLC, Prospectus Department, One Madison Avenue, New York, NY 10010, 1-800-221-1037 or Jefferies & Company, Inc., 520 Madison Avenue, New York, NY 10022, 1-888-449-2342.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

About Brigham Exploration

Brigham Exploration Company is an independent exploration, development and production company that utilizes advanced exploration, drilling and completion technologies to systematically explore for, develop and produce domestic onshore oil and natural gas reserves. For more information about Brigham Exploration, please contact Investor Relations at 512-427-3444.

Forward-Looking Statement Disclosure

The matters discussed in this news release are forward-looking statements within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, planned capital expenditures, the number of anticipated wells to be drilled after the date hereof, future borrowings, our financial position, business strategy and other plans and objectives for future operations. Important factors that could cause our actual results to differ materially from those contained in the forward-looking statements include the closing of the common stock offering; our growth strategies; our ability to finance our exploration and development activities; the impact of governmental regulation; the risks associated with drilling of oil and natural gas wells; our ability to find, acquire, market, develop, and produce new reserves; the risk of drilling dry holes; oil and natural gas price volatility; derivative transactions; uncertainties in the estimation of proved, probable, and possible reserves and in the projection of future rates of production and reserve growth; inaccuracies in our assumptions regarding items of income and expense and the level of capital expenditures; uncertainties in the timing of exploitation expenditures; operating hazards attendant to the oil and natural gas business; drilling and completion losses that are generally not recoverable from third parties or insurance; potential mechanical failure or underperformance of significant wells; pipeline construction difficulties; climatic conditions; availability and cost of material and equipment; the risks associated with operating in a limited number of geographic areas; actions or inactions of third-party operators of our properties; our ability to retain skilled personnel; diversion of management's attention from existing operations while pursuing acquisitions or dispositions; availability of capital; the strength and financial resources of our competitors; regulatory developments; environmental risks; uncertainties in the capital markets; uncertainties with respect to asset sales; general economic and business conditions (including the effects of the worldwide economic recession); industry trends; and other risks more fully described in our filings with the Securities and Exchange Commission. Forward-looking statements are typically identified by use of terms such as "may," "will," "expect," "anticipate," "estimate" and similar words, although some forward-looking statements may be expressed differently. All forward-looking statements contained in this release, including any forecasts and estimates, are based on management's outlook only as of the date of this release, and we undertake no obligation to update or revise these forward-looking statements, whether as a result of subsequent developments or otherwise.

Contact Information

  • Contact:
    Rob Roosa
    Finance Manager
    (512) 427-3300