Brigham Exploration Acquires Great Western Drilling Ltd.'s Non-Operated Assets in the Permian Basin

Core Insights - Brigham Exploration (BEXP) has acquired nonoperated assets from Great Western Drilling Ltd. (GWDC) in Texas and New Mexico, significantly expanding its footprint in the Permian Basin [1][2]. Acquisition Highlights - The acquisition includes over 7,000 net acres in the Delaware and Midland Basin, primarily located in Eddy and Lea Counties, New Mexico, and Martin, Midland, Loving, and Winkler Counties, Texas [2]. - As of August 2024, the net production from the acquired assets is approximately 2,700 barrels of oil equivalent per day (boe/d) from around 29 net producing wells [2]. - The pro forma balance sheet post-acquisition is expected to maintain a strong leverage ratio below 1.0x [2]. - The acquisition was finalized on November 22, 2024, with an effective date of April 1, 2024 [2]. - Following the acquisition, BEXP's estimated average net daily wellhead production is projected to be around 15,500 boe/d from a combined total of approximately 79 net producing wells [2]. Strategic Alignment - The acquisition aligns with BEXP's strategic focus on high-quality properties with low geologic risk in the Permian Basin [2]. - Bud Brigham, BEXP's Executive Chairman, emphasized that this acquisition enhances their existing asset base and diversifies their positions geographically and geologically [3]. - The acquisition was funded through existing equity commitments, a new credit facility led by BOK Financial, and available cash [3]. Advisory Support - Vinson & Elkins LLP acted as legal counsel for BEXP, while Redfield Energy Advisors served as financial advisor and Lynch, Chappell & Alsup provided legal counsel to GWDC [4]. Company Background - BEXP is a premier non-operated oil and gas acquisition and management company focused on the Permian Basin, founded in 2017 by Bud Brigham, who has extensive experience in the oil and gas sector [5]. - The Brigham Platform, led by Bud Brigham, consists of multiple energy enterprises, emphasizing innovation, capital discipline, and operational efficiency [7].