#United States #Austin #Brigham Exploration #Great Western Drilling #Permian Basin

Brigham Exploration Acquires Great Western Drilling Assets

Brigham Exploration, known for its significant footprint in the oil and gas sector, has recently announced a major acquisition. The company has successfully completed the purchase of non-operated assets from Great Western Drilling Ltd. The acquisition was finalized on November 22, 2024, with an effective date set for April 1, 2024. This strategic move positions Brigham Exploration as a formidable player in the Permian Basin, which spans across Texas and New Mexico.

Acquisition Details

The assets acquired cover over 7,000 net acres primarily situated in the Delaware and Midland Basins, chiefly within Eddy and Lea Counties in New Mexico, plus Martin, Midland, Loving, and Winkler Counties in Texas. Prior to the acquisition, these properties were yielding a net production rate of approximately 2,700 barrels of oil equivalent per day (boe/d) from about 29 producing wells as of August 2024. With this purchase, Brigham Exploration's total estimated average net daily wellhead production could soar to around 15,500 boe/d, factoring in both the newly acquired and existing assets.

This acquisition is crucial to Brigham Exploration’s strategy of consolidating high-quality properties characterized by low geological risk. The company has emphasized its commitment to building a robust portfolio that can withstand fluctuations in the oil market, and this acquisition is a testament to that mission.

Implications of the Acquisition

The acquisition is expected to enhance Brigham Exploration's strength significantly without compromising its financial health. The company foresaw maintaining a solid pro forma balance sheet with a leverage ratio below 1.0x after this acquisition. This indicates that they are poised to manage their obligations effectively while exploring further growth opportunities in the oil and gas sector.

Bud Brigham, the Executive Chairman of Brigham Exploration, remarked, "This acquisition represents a crucial milestone in BEXP's growth trajectory. The assets we've brought into our fold, built over generations, significantly enrich our existing operations and bolster our positions in the Delaware and Midland Basins, which is crucial for our long-term strategy."

In addition, Keith Lilie, President and CEO of Brigham Exploration, emphasized that the acquired assets align with their disciplined acquisition strategy, meeting their rigorous evaluation criteria.

Financial Backing for the Deal

The financial arrangements for the acquisition came from a mix of existing equity commitments, a newly established credit facility led by BOK Financial, alongside cash readily available to Brigham Exploration. Such diversified funding sources reflect the company’s stability and foresight in managing large-scale investments.

About Brigham Exploration

Founded in 2017, Brigham Exploration has carved out a reputation as a leading non-operated oil and gas acquisition and management company. Bud Brigham has been instrumental in this journey, bringing over three decades of industry expertise into the company. His track record includes founding multiple successful energy enterprises, several of which have seen great success in public markets.

Brigham Exploration operates within a broader framework known as The Brigham Platform, which features various energy-related entities specializing in different operational strategies. This platform aims to leverage the long-term potential of traditional energy sources, ensuring innovation and operational efficiency while prioritizing financial discipline.

For further details about their operations and future plans, interested parties can visit their official site or contact them directly via their corporate communication channels.