Norway’s Statoil bids $4.4 bn for Brigham Exploration

Norway's largest oil company, Statoil has launched a $4.4 billion cash bid for Brigham Exploration Co, to expand into the unconventional gas business in the US.

The deal will give the Stavanger-based oil company with more than 375,000 net acres in the Williston Basin, which holds potential for oil production from the Bakken and Three Forks formations.

Brigham also holds interests in 40,000 net acres in other areas. At this early stage of development the risked resource base is estimated at 300-500 million barrels of oil equivalent (boe), equity. Current production is approximately 21,000 boe per day, and the acreage has potential to ramp up production to 60,000-100,000 boe per day over a five year period.

Brigham, based in Austin, Texas, has a strong position in the attractive Bakken and Three Forks tight oil plays in the Williston Basin in North Dakota and Montana. The Bakken and Three Forks formations are among the largest oil accumulations in the US.

Statoil said that various sources have estimated the technically recoverable reserves to be in the range of 5 - 24 billion boe, over a 38,000 sq kms area.

The Brigham transaction also provides Statoil with approximately 430 miles of oil, natural gas and water transportation systems centrally located in the Williston Basin.