Brigham Exploration Enhances Its Asset Base
Brigham Exploration (BEXP) has made a significant move in the oil and gas sector by acquiring the non-operated assets of Great Western Drilling Ltd. This strategic acquisition is aimed at expanding BEXP's already impressive footprint in the dynamic Permian Basin, a region well-known for its rich oil and gas reserves.
Expanding in the Permian Basin
The acquisition encompasses over 7,000 net acres within the highly sought-after Delaware and Midland Basins. These significant tracts are situated in regions with established production in both Eddy and Lea Counties, New Mexico, as well as Martin, Midland, Loving, and Winkler Counties in Texas. This extension is not just about geography but about enhancing the overall production capabilities of BEXP's operational framework.
Production Highlights and Financial Outlook
As of the latest production estimates, this newly acquired portfolio contributes approximately 2,700 barrels of oil equivalent per day (boe/d) from around 29 net producing wells. Looking forward, the projected average net daily wellhead production for BEXP is set to exceed 15,500 boe/d post-acquisition. This reflects BEXP's commitment to maintaining a robust financial position, with a projected leverage ratio remaining below 1.0x.
Strategic Focus on High-Quality Assets
BEXP's acquisition strategy emphasizes obtaining core properties known for their low geologic risk. The integration of Great Western's assets aligns perfectly with BEXP's long-term vision. According to Bud Brigham, the Executive Chairman of BEXP, this acquisition signifies a pivotal growth phase, enhancing the company's established positions in both the Delaware and Midland Basins.
Management's Vision and Execution
In discussing the acquisition, Bud Brigham remarked, "The assets we have obtained not only bolster our existing portfolio but also complement the geographical and geological diversity across our operational areas." Keith Lilie, President and CEO, further added that this acquisition embodies BEXP's disciplined approach towards evaluating new opportunities, ensuring alignment with their overarching portfolio strategy.
Funding and Advisory Team
The acquisition was strategically financed through a mixture of existing equity commitments and a new credit facility arranged by BOK Financial, supplemented by BEXP’s existing cash reserves. This prudent financial management ensures BEXP remains positioned for future growth and exploration activities.
Advisory Support for the Acquisition
Brigham Exploration received comprehensive legal guidance from Vinson & Elkins LLP, while Redfield Energy Advisors provided vital financial consulting throughout the acquisition process. The legal team at Lynch, Chappell & Alsup was instrumental for Great Western Drilling, ensuring a seamless transition during the asset transfer.
About Brigham Exploration
Founded in 2017 by Bud Brigham, Brigham Exploration is a premier non-operated oil and gas acquisition and management company. The company primarily focuses its endeavors in the Permian Basin. With Bud Brigham’s extensive industry experience, BEXP is well-positioned to navigate the complexities of the energy sector. To date, Brigham has founded and developed several energy enterprises, contributing significantly to the industry’s evolution.
The Brigham Platform
The Brigham Platform consists of various independent oil and gas enterprises driven by a single vision of creating value in the energy sector. This group includes companies such as Atlas Energy Solutions (NYSE:AESI), which collectively leverage over 30 years of industry expertise. Brigham’s ability to secure successful exits and provide substantial returns underscores the effectiveness of his strategic leadership.
Frequently Asked Questions
What recent acquisition did Brigham Exploration announce?
Brigham Exploration announced the acquisition of Great Western Drilling Ltd.'s non-operated assets in the Permian Basin, enhancing its operational footprint.
How much production is expected from the acquired assets?
The newly acquired assets are expected to produce approximately 2,700 boe/d from around 29 producing wells, significantly boosting overall production efforts.
What is the strategic focus of Brigham Exploration?
Brigham Exploration focuses on acquiring high-quality, low-risk properties in the Permian Basin, ensuring strong financial health and production efficiency.
Who provided advisory support for the acquisition?
Vinson & Elkins LLP served as legal counsel, with Redfield Energy Advisors acting as financial advisors, ensuring a smooth acquisition process.
What is the significance of the Brigham Platform?
The Brigham Platform represents a collaborative network of energy companies founded by Bud Brigham, leveraging decades of experience to capitalize on traditional energy resources.
