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Home News Brigham and USE are Bakken action
Brigham and USE are Bakken action Print

Brigham Exploration has sealed a deal with US Energy (USE) which will see drilling get under way on a number of Brigham's Bakken shale properties before the leases expire.

The drilling participation agreement includes spacing units in the Williams and McKenzie counties, North Dakota, in the Rough Rider area.

Brigham owns 100,300 net acres in the region, a Reuters report said.

The company will retain 35% of its original working interest in the initial well in each spacing unit, with USE taking the remaining 65%, Brigham said in a statement.

Separately, USE said it had committed to drilling six initial wells and earning working interests in six 1280 acre spacing units.

It will have option to commit to drilling four further wells after receiving notification of the initial production rates from four of the first six wells drilled.

USE said it may spend about $17.6 million on the initial six-well programme, adding the amount could increase if other working interest partners - apart from Brigham and itself - do not take part.

"Assuming our original working interest averages 75% in the 15 spacing units ... and we participate for the full interest allowed under the participation agreement, USE would earn roughly 5500 net acres of our current 100,300 net acres in the Rough Rider area," Brigham boss Bud Brigham said.

Shares of Brigham closed at $6.90, while those of USE closed at $2.14 yesterday on the New York Stock Exchange.

 

Source: Upstream

 

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