Brigham Exploration Reports Year-End and Fourth Quarter 2007 Results

AUSTIN, Texas, March 3 /PRNewswire-FirstCall/ -- Brigham Exploration
Company (Nasdaq: BEXP) today announced financial results for the year-ended
and quarter ended December 31, 2007.
YEAR-END 2007 RESULTS
Average daily production volumes for 2007 were 41.6 MMcfe per day, up 13%
when compared to those for 2006. Revenues from the sale of oil and natural
gas including hedge settlements for 2007 were $124.7 million, which represents
a 20% increase when compared to last year. Higher production volumes
increased revenue by $10.4 million, higher prices also increased revenue by
$10.4 million and higher hedge settlements increased revenue by $0.4 million.
Our average realized price for natural gas in 2007 was $7.66 per Mcf,
which included a $0.36 per Mcf gain associated with the settlement of our
natural gas derivative contracts. This compares to an average realized price
in 2006 of $7.09 per Mcf, which included a $0.35 per Mcf gain due to the
settlement of our natural gas derivative contracts. Our average realized
price for oil for 2007 was $71.51 per barrel, which included a $0.79 per Bbl
loss due to the settlement of our oil derivative contracts. This compares to
an average realized price in 2006 of $64.39, which included a $0.35 per barrel
gain due to the settlement of oil derivative contracts last year.
Our production costs, which include costs for operating and maintaining
(O&M expense) our producing wells, expensed workovers, ad valorem taxes and
production taxes, decreased 21%, or by $0.23 per Mcfe, when compared to those
for 2006. Production taxes decreased 43%, or by $0.13 per Mcfe, due to an
increase in tax credits associated with high cost gas production tax
abatements. The increase in tax credits is partially attributable to the fact
that we are recording credits immediately upon commencing production from our
Vicksburg and Mills Ranch wells given our 100% success rate in applying for
credits. We now book credits immediately rather than deferring recognition
until receiving approval from the relevant government authority. O&M expenses
decreased 14%, or by $0.09 per Mcfe, due primarily to decreases in salt water
disposal, chemical treating, and equipment rental. The divestiture of our
Anadarko Basin Granite Wash assets in September 2007 reduced salt water
disposal and chemical treating costs. In addition, we purchased production
equipment in South Texas thereby reducing our equipment rental costs. Ad
valorem taxes decreased 17%, or by $0.02 per Mcfe, due to a decrease in
property valuations for our oil and natural gas properties because of lower
commodity prices at year-end 2006, which were the basis for determining
property tax rates for 2007.
Per unit general and administrative (G&A) expense for 2007 increased 3%
from 2006 to $0.62 per Mcfe, as higher employee compensation costs offset the
impact of our increased production volumes. Roughly 52% of the increase in
our compensation costs was attributable to an increase in non-cash share-based
compensation expense under FAS 123(R).
Our depletion expense for 2007 was $59.1 million ($3.94 per Mcfe) compared
to $46.4 million ($3.50 per Mcfe) in 2006. Our increased depletion rate
accounted for 52% of the increase in depletion expense while our increased
production volumes accounted for 48% of the increased depletion expense. The
increase in our depletion rate was a result of an increase in the cost of
reserve additions.
Our net interest expense for 2007 was 51% higher than last year. The
primary drivers behind the increase in our interest expense were a 54%
increase in our weighted average debt outstanding and an increase in our
weighted average interest rate due to our Senior Notes issuances in April 2006
and 2007. Our weighted average debt outstanding for 2007 was $189.1 million
versus $123.0 million in 2006 .
We recorded deferred income tax expense of $6.7 million in 2007 compared
to deferred income tax expense of $12.7 million in 2006. The decrease in our
deferred income tax expense was primarily due to lower 2007 income before
income taxes.
Our reported net income for 2007 was $10.2 million ($0.22 per diluted
share) versus net income of $19.8 million ($0.43 per diluted share) for the
same period last year. Our after-tax earnings in 2007 excluding both the
effect of our unrealized derivative losses and ceiling test impairment charge
were $17.9 million ($0.39 per diluted share) and our after-tax earnings in
2006 excluding both unrealized derivative gains and non-cash gains associated
with the ineffective portion of our cash flow hedges were $16.3 million
($0.36 per diluted share). After-tax earnings excluding the above items is a
non-GAAP measure and a reconciliation of GAAP net income to after-tax earnings
excluding the above items is included in our accompanying financial tables
found later in this release.
As of December 31, 2007, we had $13.9 million in cash, $10.0 million of
debt outstanding under our senior credit facility and a debt to book
capitalization ratio of 39%.

In 2007, we spent $126.3 million on oil and gas capital expenditures,
which represents a 32% decrease from 2006. Oil and gas capital expenditures
for 2007 and 2006 were:

Twelve Months Ended December 31,
2007 2006
(in thousands)

Drilling $96,833 $142,338
Net land and seismic 17,527 31,683
Capitalized costs 11,631 9,954
Capitalized SFAS 143 ARO 325 609
-------- --------
Total oil and gas capital expenditures $126,316 $184,584

FOURTH QUARTER 2007 RESULTS
Our average net daily production volumes for the fourth quarter 2007 were
35.5 MMcfe per day, down 9% when compared to those for the fourth quarter
2006. Revenues from the sale of oil and natural gas including hedge
settlements for the fourth quarter 2007 were up 12% to $29.1 million when
compared to those for the fourth quarter 2006. Higher realized prices
increased revenues by $5.7 million, while lower production volumes and lower
hedge settlement gains decreased revenues by $2.2 million and $0.4 million,
respectively.
Our average realized price for natural gas for the fourth quarter 2007 was
$8.02 per Mcf, which included a $0.45 per Mcf gain associated with the
settlement of our natural gas derivative contracts. This compares to an
average realized price in the fourth quarter 2006 of $7.00, which included a
$0.36 per Mcf gain due to the settlement of our natural gas derivative
contracts. During the fourth quarter 2007, our average realized price for oil
was $84.98 per barrel, which included a $4.29 per barrel loss due to the
settlement of our oil derivative contracts. This compares to an average
realized price in the fourth quarter 2006 of $56.09, which included a
$1.38 per barrel gain due to the settlement of our oil derivative contracts.
Our fourth quarter 2007 per unit production costs were up 6% when compared
to those for the fourth quarter 2006. A $0.14 per Mcfe increase in production
taxes and a $0.04 per Mcfe increase in workover expense were partially offset
by a $0.11 per Mcfe decrease in our O&M expense. The increase in production
taxes is attributable to approximately $0.8 million in additional severance
tax refunds approved by states in the fourth quarter 2006 as compared to the
fourth quarter 2007.
Per unit G&A expense for the fourth quarter 2007 increased 29% to
$0.72 per Mcfe from the fourth quarter 2006 because of lower production
volumes and higher compensation costs. Roughly 26% of the increase in our
compensation costs was attributable to an increase in non-cash share-based
compensation expense under FAS 123(R).
Our depletion expense for the fourth quarter 2007 was $13.7 million
($4.30 per Mcfe) compared to $13.1 million ($3.76 per Mcfe) in the fourth
quarter 2006. Our increased depletion rate increased depletion expense by
$1.7 million while our decreased production volumes reduced depletion expense
by $1.1 million. The increase in our depletion rate was a result of an
increase in the cost of reserve additions.
Our net interest expense for the fourth quarter 2007 increased
$0.8 million, or by 27%, from the fourth quarter 2006. This increase was
primarily due to our higher weighted average debt outstanding and our higher
weighted average interest cost associated with our Senior Notes add-on
issuance in April 2007. Our weighted average debt outstanding for the fourth
quarter 2007 was $176.6 million as compared to $149.6 million for the
comparable period last year.
We recorded deferred income tax expense of $1.5 million in the fourth
quarter of this year compared to deferred income tax expense of $2.8 million
in the fourth quarter last year. The decrease in our deferred income tax
expense was primarily due to lower fourth quarter 2007 income before income
taxes.
Our reported net income for the fourth quarter 2007 was $1.8 million
($0.04 per diluted share) versus net income of $5.0 million ($0.11 per diluted
share) for the same period last year. Our after-tax earnings in the fourth
quarter 2007 excluding the effect of our unrealized derivative losses were
$3.4 million ($0.07 per diluted share) and our after-tax earnings in the
fourth quarter 2006 excluding unrealized derivative gains were $3.2 million
($0.07 per diluted share). After-tax earnings excluding the above items is a
non-GAAP measure and a reconciliation of GAAP net income to after-tax earnings
excluding the above items is included in our accompanying financial tables
found later in this release.
2007 PROVED RESERVES
Our estimated net proved reserve volumes at December 31, 2007 totaled
140.2 Bcfe of which approximately 76% was natural gas. During 2007, we added
approximately 32.6 Bcfe in net proved reserves and replaced 217% of our
15.0 Bcfe of production. Our net proved reserves decreased by 23.8 Bcfe due
to the divestiture of our Anadarko Basin Granite Wash assets. As of December
31, 2007, our estimated proved reserves were comprised of 69.3 Bcfe of net
proved developed reserves and 70.9 Bcfe of net proved undeveloped reserves.

Equivalent Reserves
(MMcfe)
2007 Beginning Proved Reserves 146,452
Extensions, discoveries & other additions 23,622
Revisions of prior estimates 8,960
Sale of minerals-in-place (23,854)
Production (14,978)
--------

2007 Ending Proved Reserves 140,202

At year-end 2007, the standardized measure and the pre-tax present value
("Pre-tax PV10% Value") of our estimated proved reserves were $394.5 million
and $491.6 million, respectively. For 2007, these measures were calculated
using a West Texas Intermediate Sweet oil price of $96.01 per barrel and a
Henry Hub natural gas price of $7.10 per MMBtu.

At December 31, 2007
(in millions)
Standardized measure of discounted future net cash flows $394.5
Add present value of future income tax discounted at 10% 97.1
------
Pre-tax PV10% Value $491.6

Pre-tax PV10% Value is the estimated present value of the future net
revenues from our proved oil and natural gas reserves before income taxes,
discounted using a 10% discount rate. Pre-tax PV10% Value is considered a
non-GAAP financial measure under SEC regulations because it does not include
the effects of future income taxes, as is required in computing the
standardized measure of discounted future net cash flows. We believe that
Pre-tax PV10% Value is an important measure that can be used to evaluate the
relative significance of our oil and natural gas properties and that Pre-tax
PV10% Value is widely used by security analysts and investors when evaluating
oil and natural gas companies. Because many factors that are unique to each
individual company impact the amount of future income taxes to be paid, the
use of a pre-tax measure provides greater comparability of assets when
evaluating companies. We believe that most other companies in the oil and
natural gas industry calculate Pre-tax PV10% Value on the same basis. Pre-tax
PV10% Value is computed on the same basis as the standardized measure of
discounted future net cash flows, but without deducting income taxes.
FIRST QUARTER 2008 FORECASTS
The following forecasts and estimates of our first quarter 2008 production
volumes are forward looking statements subject to the risks and uncertainties
identified in the "Forward Looking Statements Disclosure" at the end of this
release. We currently expect our first quarter 2008 production volumes to
average between 30.0 MMcfe per day and 32.0 MMcfe per day. Given that it is
early in the evaluation of our Bakken acreage and the fact that we could
experience a wide range of outcomes on our initial wells, we are electing not
to provide a full year production forecast, but will revisit this decision as
we move through the year. However, beyond the first quarter 2008, we expect to
generate sequential quarterly growth in our production volumes.
For the first quarter 2008, lease operating expenses are projected to be
$0.84 per Mcfe based on the mid-point of our production guidance, production
taxes are projected to be 3.25% to 3.5% of pre-hedge oil and natural gas
revenues, and general and administrative expenses are projected to be
$2.6 million ($0.95 to $0.89 per Mcfe).
MANAGEMENT COMMENTS
Bud Brigham, Brigham's CEO and President, commented, "During 2007, we
achieved record production volumes, revenue and cash flow. Our total proved
finding cost for the relatively low operating cost high value reserves we
added during the year was approximately $3.88 per Mcfe. The Vicksburg has
driven our growth in recent years. Despite the fact that we've been
aggressively drilling proved undeveloped locations in our Vicksburg fields,
our three year total proved finding costs for our high present value Vicksburg
reserves was approximately $2.77 per Mcfe, illustrating the growth we continue
to achieve in our Vicksburg fields."
Bud Brigham continued, "Looking forward, we see the compelling repeatable
economics of the Bakken play, and we therefore believe that 2007 was
portending a new era of growth. In terms of reserves, we expect the very
substantial inventory of drilling projects we've accumulated, particularly in
the Bakken, provides us with the opportunity to add meaningful proved reserves
for years to come. Given our drilling results to date in the Bakken, we
expect to add and develop these reserves with low finding costs and attractive
margins, providing us with the multi-year period of more consistent and
predictable growth. As we build out and drill up this inventory, our oil
reserves should grow meaningfully. While we are currently 76% natural gas,
within a few years more than 50% of our reserves could be oil."
Bud Brigham continued, "In terms of production, it's also a new beginning.
To some degree we're rotating from investing the largest portion of our
drilling expenditures in the short reserve life plays of the Gulf Coast, to
now investing the largest portion in 30 to 40 year reserve life Bakken oil
projects. This rotation, combined with the pause we've taken in our Vicksburg
drilling, which has now resumed, the natural decline of last year's high rate
Southern Louisiana production, and the loss in production associated with our
late year 2007 divestiture, has resulted in lower net production volumes as we
commence 2008. We expect the resumption of our Vicksburg drilling, combined
with our Southern Louisiana drilling and the acceleration in our Bakken
drilling, to provide sequential quarterly production growth as we move through
2008. Regarding our guidance, the largest percentage of our capital
expenditures is allocated to the Bakken, which has experienced a very high
degree of variability in production rates. Therefore, as we gain additional
data over time as to the production profiles in the different areas that we
are drilling we may subsequently issue full year production guidance."
Bud Brigham concluded, "Given the longer reserve lives associated with the
Bakken production, we'll benefit from stronger production volumes in
subsequent years, smoothing out our production growth profile. Over time, our
growing resource play drilling should provide more consistent and predictable
production growth. In addition, our Bakken oil volumes also provide
substantially greater cash flow per equivalent unit (Mcfe) of production,
relative to natural gas, given the relatively high current pricing for oil
today. We welcome and relish this new era of growth, and look forward to
reporting on what should be a very exciting year for our shareholders."
CONFERENCE CALL INFORMATION
Our management will host a conference call to discuss operational and
financial results for the year-end and fourth quarter 2007 with investors,
analysts and other interested parties on Tuesday March 4, at 10:00 a.m.
Eastern Time. To participate in the call, participants within the U.S. please
dial 888-680-0869 and participants outside the U.S. please dial 617-213-4854.
The participant passcode for the call is 11452972. Participants may
pre-register for the call here
Pre-registrants will be issued a pin number to use when dialing into the live
call which will provide quick access to the conference by bypassing the
operator upon connection. A telephone recording of the conference call will
be available to interested parties approximately two hours after the call is
completed through 12:00 p.m. Eastern Time on Friday, April 4, 2008. To access
the recording, domestic callers dial 888-286-8010 and international callers
dial 617-801-6888. The passcode for the conference call playback is 43891332.
In addition, a live and archived web cast of the conference call will be
available over the Internet at either www.bexp3d.com or
www.streetevents.com.
A copy of this press release and other financial and statistical
information about the periods covered by this press release and by the
conference call that will take place on Tuesday, March 4, 2008, will be
available on our website. To access the press release: go to
www.bexp3d.com and click on News Releases. The file with a copy of the
press release is named Brigham Exploration Reports Year-End and Fourth Quarter
2007 Results and is dated Monday, March 3, 2008. To access the other
financial and statistical information that will be covered by the conference
call that will take place on Tuesday, March 4, 2008, go to
www.bexp3d.com and click on Event Calendar. The file with the other
financial and statistical information is named Financial and Statistical
Information for the Fourth Quarter 2007 Conference Call and is dated Tuesday,
March 4, 2008.
ABOUT BRIGHAM EXPLORATION
Brigham Exploration Company is an independent exploration and production
company that applies 3-D seismic imaging and other advanced technologies to
systematically explore and develop onshore domestic natural gas and oil
provinces. For more information about Brigham Exploration, please visit our
website at www.bexp3d.com or contact Investor Relations at
512-427-3444.
FORWARD LOOKING STATEMENTS DISCLOSURE
Except for the historical information contained herein, the matters
discussed in this news release are forward looking statements within the
meaning of the federal securities laws. Important factors that could cause our
actual results to differ materially from those contained in the forward
looking statements include our growth strategies, our ability to successfully
and economically explore for and develop oil and gas resources, anticipated
trends in our business‚ our liquidity and ability to finance our exploration
and development activities‚ market conditions in the oil and gas industry‚ our
ability to make and integrate acquisitions, the impact of governmental
regulation and other risks more fully described in the company's filings with
the Securities and Exchange Commission. Forward-looking statements are
typically identified by use of terms such as "may," "will," "expect,"
"anticipate," "estimate" and similar words, although some forward-looking
statements may be expressed differently. All forward looking statements
contained in this release, including any forecasts and estimates, are based on
management's outlook only as of the date of this release, and we undertake no
obligation to update or revise these forward looking statements, whether as a
result of subsequent developments or otherwise.
Contact: Rob Roosa, Finance Manager
(512) 427-3300

BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (unaudited)

Three Months Ended Twelve months Ended
December 31, December 31,
2007 2006 2007 2006
Revenues:
Oil and natural gas sales $28,307 $24,817 $120,557 $99,794
Hedging settlements 762 1,175 4,167 3,796
--------- --------- --------- ---------
29,069 25,992 124,724 103,590
Unrealized hedging gains(losses) (2,846) 2,868 (5,831) 2,580
--------- --------- --------- ---------
26,223 28,860 118,893 106,170
Other revenue 15 40 88 127
--------- --------- --------- ---------
Total Revenue 26,238 28,900 118,981 106,297

Costs and expenses:
Lease operating 2,246 2,763 10,704 10,701
Production taxes 968 566 2,541 4,021
General and administrative 2,303 1,951 9,276 7,887
Depletion of oil and natural gas
properties 13,732 13,114 59,079 46,386
Impairment of oil and natural gas
properties - - 6,505 -
Depreciation and amortization 145 161 613 537
Accretion of discount on asset
retirement obligations 81 88 379 317
--------- --------- --------- ---------
19,475 18,643 89,097 69,849
--------- --------- --------- ---------
Operating income 6,763 10,257 29,884 36,448

Other income (expense):
Interest expense, net (3,551) (2,789) (14,622) (9,688)
Interest income 118 135 654 1,207
Other income (expense) 15 171 1,022 4,565
-------- -------- -------- --------
(3,418) (2,483) (12,946) (3,916)
-------- -------- -------- --------
Income before income taxes 3,345 7,774 16,938 32,532
Income tax expense:
Current - - - -
Deferred (1,501) (2,773) (6,728) (12,744)
-------- -------- -------- --------
(1,501) (2,773) (6,728) (12,744)
-------- -------- -------- --------
Net income $1,844 $5,001 $10,210 $19,788

Net income per share available to
common stockholders:
Basic $0.04 $0.11 $0.23 $0.44
Diluted $0.04 $0.11 $0.22 $0.43

Weighted average shares outstanding:
Basic 45,184 45,054 45,110 45,017
Diluted 45,708 45,515 45,531 45,597

BRIGHAM EXPLORATION COMPANY
PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)

Three Months Ended Twelve months Ended
December 31, December 31,
2007 2006 2007 2006
Average net daily production:
Natural gas (MMcf) 29.2 31.3 35.1 29.5
Oil (Bbls) 1,045 1,247 1,089 1,227
Equivalent natural gas
(MMcfe)(6:1) 35.5 38.8 41.6 36.8

Total net production:
Natural gas (MMcf) 2,629 2,814 12,626 10,603
Oil (MBbls) 94 112 392 442
Equivalent natural gas
(MMcfe)(6:1) 3,194 3,488 14,978 13,254
% Natural gas 82 % 81 % 84 % 80 %

Sales price:
Natural gas ($/Mcf) $7.57 $6.64 $7.30 $6.74
Oil ($/Bbl) 89.27 54.71 72.30 64.04
Equivalent natural gas
($/Mcfe)(6:1) 8.86 7.11 8.05 7.53

Sales price including derivative
settlement gains (losses):
Natural gas ($/Mcf) $8.02 $7.00 $7.66 $7.09
Oil ($/Bbl) 84.98 56.09 71.51 64.39
Equivalent natural gas
($/Mcfe)(6:1) 9.10 7.45 8.33 7.82

Sales price including derivative
settlement gains (losses)
and unrealized gains (losses):
Natural gas ($/Mcf) $7.52 $7.96 $7.38 $7.31
Oil ($/Bbl) 68.66 57.43 65.57 64.79
Equivalent natural gas
($/Mcfe)(6:1) 8.21 8.27 7.94 8.01

SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)

December 31, December 31,
2007 2006
Assets:
Current assets $32,505 $31,218
Oil and natural gas properties, net
(full cost method) 510,207 485,525
Other property and equipment, net 1,034 936
Other non-current assets 4,682 4,908
---------- ----------
Total assets $548,428 $522,587
========== ==========

Liabilities and stockholders' equity:
Current liabilities $41,718 $57,453
Senior notes 158,492 123,434
Senior credit facility 10,000 25,900
Mandatorily redeemable preferred stock, Series A 10,101 10,101
Deferred income tax liability 41,625 34,609
Other non-current liabilities 7,465 5,075
---------- ----------
Total liabilities $269,401 $256,572
Stockholders' equity 279,027 266,015
---------- ----------
Total liabilities and stockholders' equity $548,428 $522,587
========== ==========

BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)

Three Months Ended Twelve months Ended
December 31, December 31,
2007 2006 2007 2006
Cash flows from operating
activities:
Net income $1,844 $5,001 $10,210 $19,788
Depletion, depreciation and
amortization 13,877 13,275 59,692 46,923
Impairment of oil and gas
properties - - 6,505 -
Accretion of discount on ARO 81 88 379 317
Interest paid through issuance of
additional redeemable
preferred stock - - - -
Amortization of deferred loan fees
and debt issuance costs 255 209 968 1,682
Non-cash stock compensation 450 437 1,905 1,571
Market value adjustments for
derivatives instruments 2,846 (2,868) 5,831 (5,794)
Deferred income tax expense 1,501 2,773 6,728 12,744
Provision for doubtful accounts - 48 - 48
Other noncash items - - (4) 64
Changes in operating assets and
liabilities (3,757) (4,571) (1,765) 11,344
-------- -------- -------- --------
Cash flows provided by
operating activities $17,097 $14,392 $90,449 $88,687

Cash flows used by investing
activities (23,930) (45,608) (99,093) (171,747)
Cash flows (used) provided
by financing activities 10,200 25,902 18,207 83,385
-------- -------- -------- --------
Net increase (decrease) in
cash and cash equivalents $3,367 $(5,314) $9,563 $325
======== ======== ======== ========

SUMMARY PER MCFE DATA
(unaudited)

Three Months Ended Twelve months Ended
December 31, December 31,
2007 2006 2007 2006
Revenues:
Oil and natural gas sales $8.21 $8.27 $7.94 $8.01
Other revenue - 0.01 - 0.01
------- ------- ------- -------
$8.21 $8.28 $7.94 $8.02
Costs and expenses:
Lease operating 0.70 0.79 0.71 0.81
Production taxes 0.30 0.16 0.17 0.30
General and administrative 0.72 0.56 0.62 0.60
Depletion of natural gas
and oil properties 4.30 3.76 3.94 3.50
Impairment of natural gas
and oil properties - - 0.43 -
Depreciation and
amortization 0.05 0.05 0.04 0.04
Accretion of discount on ARO 0.03 0.03 0.03 0.02
------- ------- ------- -------
$6.10 $5.35 $5.94 $5.27
------- ------- ------- -------
Operating income $2.11 $2.93 $2.00 $2.75

Interest expense, net of
interest income (a) (1.07) (0.76) (0.93) (0.64)
Other income (expense) (b) - 0.05 0.07 0.10
------- ------- ------- -------
Adjusted income $1.04 $2.22 $1.14 $2.21
======= ======= ======= =======

(a) Calculated as interest expense minus interest income divided by
production for period.
(b) Excludes non-cash gains/(losses) arising from hedge accounting for
certain of our oil and natural gas hedges.

BRIGHAM EXPLORATION COMPANY
RECONCILIATION OF GAAP NET INCOME TO AFTER-TAX EARNINGS
EXCLUDING THE EFFECT OF CERTAIN ITEMS
(in thousands)

Three months Twelve months
ended December 31, ended December 31,
2007 2006 2007 2006

Net income (loss) as reported $1,844 $5,001 $10,210 $19,788
Unrealized derivative (gains)
losses 2,846 (2,868) 5,831 (2,580)
Unrealized derivative (gains)
losses on ineffective hedges - - (3,213)
Impairment of oil and natural
gas properties - - 6,505 -
Tax impact (1,277) 1,023 (4,678) 2,269
------- ------- -------- --------
Earnings excluding the effect
of certain items $3,413 $3,156 $17,868 $16,264
======= ======= ======== ========

Earnings without the effect of certain items represents net income
excluding the following: unrealized gains and losses on derivative contracts;
unrealized gains and losses related to ineffectiveness on our derivatives that
were previously classified as cash flow hedges; and our non-cash impairment
charge on our oil and gas properties. Management believes that exclusion of
these items enhances comparability of operating results between periods.

BRIGHAM EXPLORATION COMPANY
SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF MARCH 3, 2008
(unaudited)

2008 2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3
Natural Gas Costless
Collars:
Daily
volumes MMBtu/d 16,703 15,055 10,543 4,783 4,333 2,308 2,283
Floor $/MMBtu $7.873 $7.109 $7.023 $7.830 $7.904 $7.071 $7.071
Cap $/MMBtu $12.441 $9.536 $9.697 $10.434 $10.438 $9.750 $9.750

Natural Gas Three Way
Costless Collars:
Daily
volumes MMBtu/d - - - 1,630 1,667 - -
Floor $/MMBtu $ - $ - $ - $8.00 $8.00 $ - $ -
Written
Put $/MMBtu $ - $ - $ - $5.50 $5.50 $ - $ -
Cap $/MMBtu $ - $ - $ - $10.35 $10.35 $ - $ -

Oil Costless Collars:
Daily
volumes Bbls/d 500 451 337 293 100 99 -
Floor $/Bbl $61.68 $64.98 $66.17 $65.52 $62.00 $62.00 $ -
Cap $/Bbl $85.59 $86.65 $88.50 $87.83 $81.75 $81.75 $ -

Hedged volumes and prices reflected in this table represent average
contract amounts for the quarterly periods presented; natural gas hedge prices
and crude oil hedge contract prices are based on NYMEX pricing.
SOURCE Brigham Exploration Company

Rob Roosa, Finance Manager of Brigham Exploration Company, +1-512-427-3300