Brigham Exploration Company (Nasdaq:BEXP) reported rapid production growth in the third quarter of 2010, as it continued to benefit from its early investment in the Williston Basin. The company also solidified its place as one of the leaders in the Bakken, one of the hottest oil and gas plays in North America.

IN PICTURES: Learn To Invest In 10 Steps

Q3 Summary
Brigham Exploration Company reported average daily production of 8,509 barrels of oil equivalent (BOE) during the third quarter of 2010. This represented production growth of 64% year over year, and 10% sequentially.

Another company with rapid production growth is Petrohawk Energy (NYSE:HK), which turned in 34% year over year production growth in the most recent quarter.

Seventy five percent of Brigham Exploration Company's production was crude oil in the most recent quarter, compared to only 50% in the third quarter of 2009. This percentage should continue to move higher as the company's investments are being allocated mostly to oily plays in the United States.

Brigham Exploration Company also forecasts that this strong production growth would continue for the balance of the year. The company expects average daily production for the fourth quarter of 2010 to be in a range from 10,200 to 10,800 BOE per day.

Williston Basin
Brigham Exploration Company is putting most of its exploration and development capital into the Williston Basin, where the company is developing the Bakken and Three Forks formations in North Dakota and Montana. Brigham Exploration Company is operating six rigs in three separate project areas, and will move up to eight rigs by May 2011.

Brigham Exploration Company has allocated $466.1 million in exploration and development capital in 2010, which will cover drilling nearly 45 wells in the Williston Basin and five wells in other areas the company is developing.

This investment continues to pay off for the company as demonstrated by three recent wells drilled and completed to the Bakken formation. Brigham Exploration Company reported that the wells had initial production rates ranging from 2,417 to 5,061 BOE per day.

Other Companies
The Williston Basin has become ground zero in North America for the oil and liquids frenzy currently gripping the exploration and production industry. Another company active in this basin is Continental Resources (NYSE:CLR), which has approximately 865,000 net acres under lease that are prospective for the Bakken and Three Forks formations in North Dakota and Montana. Continental Resources reported average daily production of 20,160 BOE per day from its Bakken wells in the third quarter of 2010.

Oasis Petroleum (NYSE:OAS) is also developing the Bakken and Three Forks formation on its 292,000 net acres under lease in the Williston Basin. The company estimates that it has just over 1,000 net locations to drill on its properties.

Bottom Line
Brigham Exploration Company continued its top-tier production growth in the third quarter of 2010, as the company reaped the benefit of its early move into the Williston Basin. (For related reading, take a look at How Does Crude Oil Affect gas Prices?)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Investing

    How to Ballast a Portfolio with Bonds

    If January and early February performance is any guide, there’s a new normal in financial markets today: Heightened volatility.
  2. Stock Analysis

    Performance Review: Emerging Markets Equities in 2015

    Find out why emerging markets struggled in 2015 and why a half-decade long trend of poor returns is proving optimistic growth investors wrong.
  3. Investing

    Don't Freak Out Over Black Swans; Be Prepared

    Could 2016 be a big year for black swans? Who knows? Here's what black swans are, how they can devastate the unprepared, and how the prepared can emerge unscathed.
  4. Investing News

    Today's Sell-off: Are We in a Margin Liquidation?

    If we're in market liquidation, is it good news or bad news? That party depends on your timeframe.
  5. Economics

    4 Countries Pleading for Higher Commodity Prices

    Discover what countries are struggling the most from the price collapse in commodities and what these countries require to return to economic growth.
  6. Investing News

    Bank Stocks: Time to Buy or Avoid? (WFC, JPM, C)

    Bank stocks have been pounded. Is this the right time to buy or should they be avoided?
  7. Stock Analysis

    Why the Bullish Are Turning Bearish

    Banks are reducing their targets for the S&P 500 for 2016. Here's why.
  8. Stock Analysis

    How to Find Quality Stocks Amid the Wreckage

    Finding companies with good earnings and hitting on all cylinders in this environment, although possible, is not easy.
  9. Stock Analysis

    Analyzing Sirius XM's Return on Equity (ROE) (SIRI)

    Learn more about the Sirius XM's overall 2015 performance, return on equity performance and future predictions for the company's ROE in 2016 and beyond.
  10. Stock Analysis

    Glencore Vs. Noble Group

    Read about the differences between Glencore and Noble Group, two companies in the commodities business. Learn about accounting accusations facing Noble Group.
  1. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  2. What is the formula for calculating EBITDA?

    When analyzing financial fitness, corporate accountants and investors alike closely examine a company's financial statements ... Read Full Answer >>
  3. How do I calculate the P/E ratio of a company?

    The price-earnings ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate ... Read Full Answer >>
  4. How do you calculate return on equity (ROE)?

    Return on equity (ROE) is a ratio that provides investors insight into how efficiently a company (or more specifically, its ... Read Full Answer >>
  5. How do you calculate working capital?

    Working capital represents the difference between a firm’s current assets and current liabilities. The challenge can be determining ... Read Full Answer >>
  6. What is the formula for calculating the current ratio?

    The current ratio is a financial ratio that investors and analysts use to examine the liquidity of a company and its ability ... Read Full Answer >>
Trading Center