Capex Data
Brigham Exploration Company approved a $134.4 million capital expenditure budget for 2008.
2008 CAPITAL SPENDING PLAN
Brigham plan to spud 33 wells in 2008 with an average working interest of 54%. Approximately $102.6 million, or 76%, of the company's 2008 capital budget will fund drilling expenditures, which represents an approximate 6% increase compared to 2007. Brigham estimate that they will operate 93% of their 2008 drilling capital expenditure budget and that 71% of 2008 drilling capital expenditures will be allocated to development drilling while 29% will be allocated to exploration drilling. Additionally, Brigham estimate that they will spend approximately $31.2 million in 2008 to develop their proved undeveloped reserves at December 31, 2007. The company's budgeted capital expenditure program for 2008 is as follows:
(In millions)
Drilling: $102.6
Net land and seismic: 18.3
Exploration and development capital expenditures: $120.9
Capitalized interest and G&A: 12.8
Other non-oil & gas assets: 0.7
Total: $134.4
The amount and allocation of actual capital expenditures will depend upon a number of factors, including the impact of oil and gas prices, variances in drilling and service costs, the timing of our drilling wells and variances in forecasted production.
Future Plans
ROCKY MOUNTAINS
Approximately $52.4 million, or 43%, of the company's 2008 exploration and development capital expenditures are expected to be allocated to their Rocky Mountain province. Approximately $41.0 million, or 78%, of this capital will be allocated to drill 17 wells in the Williston Basin with an anticipated 35% net working interest, to complete wells that were in progress at year-end 2007 and for other various exploration and development activities. Of the 17 wells Brigham currently expect to drill in 2008, 16 are expected to be Bakken wells and one is expected to be a Red River well. In 2008, the company plan to spend approximately $11.4 million, or 22%, of this capital on land and seismic activities.
ONSHORE GULF COAST
Approximately $51.7 million, or 43%, of Brigham's 2008 exploration and development capital expenditures are expected to be allocated to their Onshore Gulf Coast province. Approximately $48.1 million, or 93%, of this capital is expected to be allocated to drill 11 wells with an average net working interest of 71%, to drill and complete several wells that were in progress at December 31, 2007 and for other various exploration and development activities. In 2008, Brigham anticipate spending approximately $3.6 million, or 7%, or this capital on land and seismic activities.
Approximately 68% of Onshore Gulf Coast drilling capital is anticipated to be allocated to development activities. Brigham's 2008 development activities are expected to consist of four Vicksburg wells, one Southern Louisiana well, one Frio well and for other development activities.
Approximately 32% of Onshore Gulf Coast drilling capital is anticipated to be allocated to exploration activities. Brigham's 2008 exploration activities are expected to consist of one Vicksburg well, four Southern Louisiana wells and to complete a Southern Louisiana well that was in progress at year-end.
ANADARKO BASIN
Approximately $13.6 million, or 11%, of Brigham's 2008 exploration and development capital expenditures will be allocated to their Anadarko Basin province. Approximately $11.7 million, or 86%, of this capital will be allocated to drill five wells with an average net working interest of 76% and for other various exploration and development activities. In 2008, the company anticipate spending approximately $1.9 million, or 14%, of this capital on land and seismic activities.
Approximately 62% of Anadarko Basin drilling capital is expected to be allocated to development activities, which include one Hunton well, one Springer Channel well, one Springer Bar well, one other Anadarko Basin well and for other various development activities.
Approximately 38% of Anadarko Basin drilling capital is expected to be allocated to drill one Hunton exploration well.
WEST TEXAS AND OTHER
Approximately $3.2 million, or 3%, of the company's 2008 exploration and development capital expenditures are allocated to their West Texas and Other province. Approximately 56% of this capital will be allocated to complete one exploratory well that was in progress at December 31, 2007 and for other various exploration and development activities. In 2008, Brigham anticipate spending approximately $1.4 million, or 44%, of this capital on land and seismic activities.