----

----

**FORM        10**
**Q/A**

**(Amendment        No. 1)**

| **x** | **QUARTERLY                    REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE                    ACT OF                    1934** |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

**OR**

| **o** | **TRANSITION                    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                    ACT OF                    1934** |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

**000-22433**

**Brigham        Exploration Company**

| **Delaware**                                         | **1311**                                        | **75-2692967**                            |
|------------------------------------------------------|-------------------------------------------------|-------------------------------------------|
| (State                    of other jurisdiction      | (Primary                    Standard Industrial | (I.R.S.                    Employer       |
| of                    incorporation or organization) | Classification                    Code Number)  | Identification                    Number) |

**6300        Bridge Point Parkway, Building 2, Suite 500, Austin, Texas        78730**

**(512)        427-3300**

| **Class**                                                                   |   | **Outstanding** |
|-----------------------------------------------------------------------------|--------|-----------------|
| Common                    Stock, par value $.01 per share as of May 3, 2005 |   | 42,489,396      |

----

----

----

**Explanatory        Note**

----

**Brigham          Exploration Company**

**First          Quarter 2005 Form 10-Q/A Report**

**TABLE          OF CONTENTS**

| **Page**                                                          |                                                                                                                                      | Page   |
|-------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **PART                    I - FINANCIAL INFORMATION**   |
|                                                              |                                                                                                                                      |   |
| ITEM                    1.                                        | FINANCIAL                    STATEMENTS                                                                                                   |   |
|                                                              |                                                                                                                                      |   |
|                                                              | Consolidated                    Balance Sheets - March 31, 2005 and December 31,                    2004                                  | 1      |
|                                                              | Consolidated                    Statements of Operations - Three months ended                    March 31, 2005 and 2004                  | 2      |
|                                                              | Consolidated                    Statement of Changes in Stockholders’ Equity -                    Three months ended March 31, 2005 | 3      |
|                                                              | Consolidated                    Statements of Cash Flows - Three months ended                    March 31, 2005 and 2004                  | 4      |
|                                                              | Notes                    to the Consolidated Financial                    Statements                                                      | 5      |
|                                                              |                                                                                                                                      |   |
| ITEM                    2.                                        | MANAGEMENT'S                    DISCUSSION AND ANALYSIS OF FINANCIAL                     CONDITION AND RESULTS OF OPERATIONS         | 14     |
|                                                              |                                                                                                                                      |   |
| ITEM                    3.                                        | QUANTITATIVE                    AND QUALITATIVE DISCLOSURES ABOUT MARKET                    RISK                                          | 27     |
|                                                              |                                                                                                                                      |   |
| ITEM                    4.                                        | CONTROLS                    AND PROCEDURES                                                                                                | 28     |
|                                                              |                                                                                                                                      |   |
|                                                              |                                                                                                                                      |   |
| **PART                    II - OTHER INFORMATION**      |
|                                                              |                                                                                                                                      |   |
| ITEM                    1.                                        | LEGAL                    PROCEEDINGS                                                                                                      | 29     |
|                                                              |                                                                                                                                      |   |
| ITEM                    2.                                        | UNREGISTERED                    SALES OF EQUITY SECURITIES                    AND USE OF PROCEEDS                                         | 29     |
|                                                              |                                                                                                                                      |   |
| ITEM                    3.                                        | DEFALTS                    UPON SENIOR SECURITIES                                                                                         | 29     |
|                                                              |                                                                                                                                      |   |
| ITEM                    4.                                        | SUBMISSION                    OF MATTERS TO A VOTE OF SECURITY                    HOLDERS                                                 | 29     |
|                                                              |                                                                                                                                      |   |
| ITEM                    5.                                        | OTHER                    INFORMATION                                                                                                      | 29     |
|                                                              |                                                                                                                                      |   |
| ITEM                    6.                                        | EXHIBITS                                                                                                                                  | 29     |
|                                                              |                                                                                                                                      |   |
| SIGNATURES                                                        | 30                                                                                                                                        |

----

*Table            of Contents*

PAR

ITEM          1.

**BRIGHAM        EXPLORATION COMPANY**

**CONSOLIDATED        BALANCE SHEETS**

**(In        thousands, except share data)**

**(Unaudited)**

|                                                                                                                                                                                                                                                                                                                                            |   | **March                  31,** |    | **December                  31,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|-----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                            |   | **2005**                       |    | **2004**                          |   |
| **ASSETS**                                                                                                                                                                                                                                                                                                                                      |   |
| Current                  assets:                                                                                                                                                                                                                                                                                                                |   |                           |    |                              |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                                                                                                 |   | $                              | 4,641   |                              | $      | 2,281 |   |
| Accounts                  receivable                                                                                                                                                                                                                                                                                                       |   |                           | 16,761  |                              |   | 17,573 |   |
| Deferred                  income taxes                                                                                                                                                                                                                                                                                                     |   |                           | 449     |                              |   | 239 |   |
| Other                  current assets                                                                                                                                                                                                                                                                                                      |   |                           | 673     |                              |   | 901 |   |
| Total                  current assets                                                                                                                                                                                                                                                                                                           |   |                           | 22,524  |                              |   | 20,994 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |                           |    |                              |   |   |   |
| Oil                  and natural gas properties, net (full cost method)                                                                                                                                                                                                                                                                    |   |                           | 279,424 |                              |   | 261,979 |   |
| Other                  property and equipment, net                                                                                                                                                                                                                                                                                         |   |                           | 1,171   |                              |   | 1,209 |   |
| Deferred                  loan fees                                                                                                                                                                                                                                                                                                        |   |                           | 2,020   |                              |   | 1,745 |   |
| Other                  noncurrent assets                                                                                                                                                                                                                                                                                                   |   |                           | 700     |                              |   | 380 |   |
| Total                  assets                                                                                                                                                                                                                                                                                                                   |   | $                              | 305,839 |                              | $      | 286,307 |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                                                                       |   |
| Current                  liabilities:                                                                                                                                                                                                                                                                                                           |   |                           |    |                              |   |   |   |
| Accounts                  payable                                                                                                                                                                                                                                                                                                          |   | $                              | 17,849  |                              | $      | 22,465 |   |
| Royalties                  payable                                                                                                                                                                                                                                                                                                         |   |                           | 4,442   |                              |   | 6,072 |   |
| Accrued                  drilling costs                                                                                                                                                                                                                                                                                                    |   |                           | 9,152   |                              |   | 6,099 |   |
| Participant                  advances received                                                                                                                                                                                                                                                                                             |   |                           | 2,684   |                              |   | 3,633 |   |
| Other                  current liabilities                                                                                                                                                                                                                                                                                                 |   |                           | 3,389   |                              |   | 2,225 |   |
| Total                  current liabilities                                                                                                                                                                                                                                                                                                 |   |                           | 37,516  |                              |   | 40,494 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |                           |    |                              |   |   |   |
| Senior                  credit facility                                                                                                                                                                                                                                                                                                    |   |                           | 38,100  |                              |   | 21,000 |   |
| Senior                  subordinated notes                                                                                                                                                                                                                                                                                                 |   |                           | 20,000  |                              |   | 20,000 |   |
| Series                  A Preferred Stock, mandatorily redeemable, $.01 par value, $20                  stated and                  redemption value, 2,250,000 shares authorized, 485,379 and 475,986                  shares                  issued and outstanding at March 31, 2005 December 31, 2004,                  respectively  |   |                           | 9,708   |                              |   | 9,520 |   |
| Deferred                  income taxes                                                                                                                                                                                                                                                                                                     |   |                           | 10,772  |                              |   | 9,031 |   |
| Other                  noncurrent liabilities                                                                                                                                                                                                                                                                                              |   |                           | 3,040   |                              |   | 2,986 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |                           |    |                              |   |   |   |
| Commitments                  and contingencies (Note 4)                                                                                                                                                                                                                                                                                         |   |                           |    |                              |   |   |   |
|                                                                                                                                                                                                                                                                                                                                            |   |                           |    |                              |   |   |   |
| Stockholders'                  equity:                                                                                                                                                                                                                                                                                                          |   |                           |    |                              |   |   |   |
| Common                  stock, $.01 par value, 50 million shares authorized, 43,373,199                  and                  43,231,499 shares issued and 42,154,822 and 42,034,351 shares outstanding                  at March 31, 2005 and December 31, 2004, respectively                                                        |   |                           | 434     |                              |   | 432 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                                                                                |   |                           | 176,266 |                              |   | 175,270 |   |
| Treasury                  stock, at cost; 1,218,377 and 1,197,148 shares at March 31, 2005                  and                  December 31, 2004, respectively                                                                                                                                                                           |   |                           | (4,897  | )                                 |   | (4,707 | ) |
| Unearned                  stock compensation                                                                                                                                                                                                                                                                                               |   |                           | (2,003  | )                                 |   | (1,570 | ) |
| Accumulated                  other comprehensive income (loss)                                                                                                                                                                                                                                                                             |   |                           | (499    | )                                 |   | (503 | ) |
| Retained                  earnings                                                                                                                                                                                                                                                                                                         |   |                           | 17,402  |                              |   | 14,354 |   |
| Total                  stockholders’ equity                                                                                                                                                                                                                                                                                          |   |                           | 186,703 |                              |   | 183,276 |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                                                                                                     |   | $                              | 305,839 |                              | $      | 286,307 |   |

----

*Table            of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**(In        thousands, except per share data)**

**(Unaudited)**

|                                                                         |   | **Three                  Months Ended** |    |
|------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                         |   | **March                  31,**          |    |
|                                                                         |   | **2005**                                |    | **2004** |   |
|                                                                         |   |                                    |    | **Restated** |   |
| Revenues:                                                                    |   |                                    |    |   |   |
| Oil                  and natural gas sales                              |   | $                                       | 16,703  |   | $ | 16,819 |   |
| Other                  revenue                                          |   |                                    | 43      |   |   | 1 |   |
|                                                                         |   |                                    | 16,746  |   |   | 16,820 |   |
| Costs                  and expenses:                                         |   |                                    |    |   |   |   |   |
| Lease                  operating                                        |   |                                    | 2,218   |   |   | 1,409 |   |
| Production                  taxes                                       |   |                                    | 802     |   |   | 863 |   |
| General                  and administrative                             |   |                                    | 1,098   |   |   | 1,220 |   |
| Depletion                  of oil and natural gas properties            |   |                                    | 6,453   |   |   | 5,124 |   |
| Depreciation                  and amortization                          |   |                                    | 182     |   |   | 181 |   |
| Accretion                  of discount on asset retirement obligations  |   |                                    | 39      |   |   | 37 |   |
|                                                                         |   |                                    | 10,792  |   |   | 8,834 |   |
| Operating                  income                                            |   |                                    | 5,954   |   |   | 7,986 |   |
| Other                  income (expense):                                     |   |                                    |    |   |   |   |   |
| Interest                  income                                        |   |                                    | 39      |   |   | 14 |   |
| Interest                  expense, net                                  |   |                                    | (741    | ) |   | (782 | ) |
| Other                  income (expense)                                 |   |                                    | (531    | ) |   | 127 |   |
|                                                                         |   |                                    | (1,233  | ) |   | (641 | ) |
| Income                  before income taxes                             |   |                                    | 4,721   |   |   | 7,345 |   |
| Income                  tax expense:                                         |   |                                    |    |   |   |   |   |
| Current                                                                 |   |                                    | — |   |   | — |   |
| Deferred                                                                |   |                                    | (1,673  | ) |   | (2,420 | ) |
|                                                                         |   |                                    | (1,673  | ) |   | (2,420 | ) |
|                                                                         |   |                                    |    |   |   |   |   |
| Net                  income                                             |   | $                                       | 3,048   |   | $ | 4,925 |   |
|                                                                         |   |                                    |    |   |   |   |   |
| Net                  income per share available to common stockholders:      |   |                                    |    |   |   |   |   |
| Basic                                                                   |   | $                                       | 0.07    |   | $ | 0.13 |   |
| Diluted                                                                 |   | $                                       | 0.07    |   | $ | 0.12 |   |
|                                                                         |   |                                    |    |   |   |   |   |
| Weighted                  average shares outstanding:                        |   |                                    |    |   |   |   |   |
| Basic                                                                   |   |                                    | 42,124  |   |   | 39,166 |   |
| Diluted                                                                 |   |                                    | 43,166  |   |   | 40,211 |   |

----

*Table            of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**CONSOLIDATED        STATEMENTS OF STOCKHOLDERS' EQUITY**

**(In        thousands)**

**(Unaudited)**

|                                                                |   | **Common                      Stock** |    |        |   |                                                      |   |                  |    |                                  |   |                                                                            |    |                     |    |
|---------------------------------------------------------------------|--------|---------------------------------------|---------|-------------|--------|-----------------------------------------------------------|--------|-----------------------|---------|---------------------------------------|--------|---------------------------------------------------------------------------------|---------|--------------------------|---------|
|                                                                |   | **Shares**                            |    | **Amounts** |   | **Additional****Paid                      In****Capital** |   | **Treasury****Stock** |    | **Unearned****Stock****Compensation** |   | **Accumulated****Other****Comprehensive****Income                      (Loss)** |    | **Retained****Earnings** |    | **Total****Stockholders'****Equity** |   |
| Balance,                      December 31, 2004                     |   |                                  | 43,231  |        | $      | 432                                                       |   | $                     | 175,270 |                                  | $      | (4,707                                                                          | )  | $                   | (1,570  | ) | $ | (503 | )  | $ | (14,354 | ) | $ | (183,276 | ) |
| Comprehensive                      income:                          |   |                                  |    |        |   |                                                      |   |                  |    |                                  |   |                                                                            |    |                     |    |   |   |   |   |   |   |   |   |   |   |
| Net                      income                                     |   |                                  | — |        |   | —                                                   |   |                  | — |                                  |   | —                                                                         |    |                     | — |   |   | — |   |   | 3,048 |   |   | 3,048 |   |
| Unrealized                      gain (losses) on cash flow hedges   |   |                                  | — |        |   | —                                                   |   |                  | — |                                  |   | —                                                                         |    |                     | — |   |   | (609 | ) |   | — |   |   | (609 | ) |
| Tax                      benefits related to cash flow hedges       |   |                                  | — |        |   | —                                                   |   |                  | — |                                  |   | —                                                                         |    |                     | — |   |   | (3 | ) |   | — |   |   | (3 | ) |
| Net                      losses included in net income              |   |                                  | — |        |   | —                                                   |   |                  | — |                                  |   | —                                                                         |    |                     | — |   |   | 616 |   |   | — |   |   | 616 |   |
| Comprehensive                      income                           |   |                                  |    |        |   |                                                      |   |                  |    |                                  |   |                                                                            |    |                     |    |   |   |   |   |   |   |   |   | 3,052 |   |
| Exercises                      of employee stock options            |   |                                  | 77      |        |   | 1                                                         |   |                  | 250     |                                  |   | —                                                                         |    |                     | — |   |   | — |   |   | — |   |   | 251 |   |
| Vesting                      of restricted stock                    |   |                                  | 65      |        |   | 1                                                         |   |                  | (1      | )                                     |   | —                                                                         |    |                     | — |   |   | — |   |   | — |   |   | — |   |
| Issuance                      of restricted stock                   |   |                                  | — |        |   | —                                                   |   |                  | 602     |                                  |   | —                                                                         |    |                     | (602    | ) |   | — |   |   | — |   |   | — |   |
| Tax                      benefit from the exercise of stock options |   |                                  | — |        |   | —                                                   |   |                  | 145     |                                  |   | —                                                                         |    |                     | — |   |   | — |   |   | — |   |   | 145 |   |
| Repurchases                      of common stock                    |   |                                  | — |        |   | —                                                   |   |                  | — |                                  |   | (190                                                                            | )       |                     | — |   |   | — |   |   | — |   |   | (190 | ) |
| Amortization                      of unearned stock compensation    |   |                                  | — |        |   | —                                                   |   |                  | — |                                  |   | —                                                                         |    |                     | 169     |   |   | — |   |   | — |   |   | 169 |   |
| Balance,                      March 31, 2005                        |   |                                  | 43,373  |        | $      | 434                                                       |   | $                     | 176,266 |                                  | $      | (4,897                                                                          | )       | $                        | (2,003  | ) | $ | (499 | ) | $ | 17,402 |   | $ | 186,703 |   |

----

*Table            of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(In        thousands)**

**(Unaudited)**

|                                                                                                                      |   | **Three                    Months Ended** |    |
|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                                                                                      |   | **March                    31,**          |    |
|                                                                                                                      |   | **2005**                                  |    | **2004** |   |
|                                                                                                                      |   |                                      |    | **Restated(1)** |   |
| Cash                    flows from operating activities:                                                                  |   |                                      |    |   |   |
| Net                    income                                                                                        |   | $                                         | 3,048   |   | $ | 4,925 |   |
| Adjustments                    to reconcile net income to cash provided by operating activities:                          |   |                                      |    |   |   |   |   |
| Depletion                    of oil and natural gas properties                                                            |   |                                      | 6,453   |   |   | 5,124 |   |
| Depreciation                    and amortization                                                                          |   |                                      | 182     |   |   | 181 |   |
| Interest                    paid through issuance of additional mandatorily redeemable preferred                    stock |   |                                      | 188     |   |   | 175 |   |
| Amortization                    of deferred loan fees and debt issuance costs                                             |   |                                      | 126     |   |   | 192 |   |
| Market                    value adjustment for derivative instruments                                                     |   |                                      | 606     |   |   | (127 | ) |
| Accretion                    of discount on asset retirement obligations                                                  |   |                                      | 39      |   |   | 37 |   |
| Deferred                    income taxes                                                                                  |   |                                      | 1,673   |   |   | 2,420 |   |
| Other                    noncash items                                                                                    |   |                                      | 12      |   |   | — |   |
| Changes                    in assets and liabilities:                                                                     |   |                                      |    |   |   |   |   |
| Accounts                    receivable                                                                                    |   |                                      | 812     |   |   | (2,672 | ) |
| Other                    current assets                                                                                   |   |                                      | 85      |   |   | 2,704 |   |
| Accounts                    payable                                                                                       |   |                                      | (4,616  | ) |   | (2,570 | ) |
| Royalties                    payable                                                                                      |   |                                      | (1,630  | ) |   | 843 |   |
| Participant                    advances received                                                                          |   |                                      | (949    | ) |   | (557 | ) |
| Other                    current liabilities                                                                              |   |                                      | 226     |   |   | (2,017 | ) |
| Other                    noncurrent assets and liabilities                                                                |   |                                      | (11     | ) |   | (64 | ) |
| Net                    cash provided by operating activities                                                              |   |                                      | 6,244   |   |   | 8,594 |   |
| Cash                    flows from investing activities:                                                                  |   |                                      |    |   |   |   |   |
| Additions                    to oil and natural gas properties                                                       |   |                                      | (20,738 | ) |   | (17,135 | ) |
| Additions                    to other property and equipment                                                         |   |                                      | (65     | ) |   | (129 | ) |
| (Increase)                    Decrease in drilling advances paid                                                     |   |                                      | 159     |   |   | 207 |   |
| Net                    cash used by investing activities                                                                  |   |                                      | (20,644 | ) |   | (17,057 | ) |
| Cash                    flows from financing activities:                                                                  |   |                                      |    |   |   |   |   |
| Increase                    in senior credit facility                                                                     |   |                                      | 17,100  |   |   | 10,200 |   |
| Deferred                    loan fees paid                                                                                |   |                                      | (401    | ) |   | (11 | ) |
| Proceeds                    from exercise of employee stock options                                                       |   |                                      | 251     |   |   | 310 |   |
| Repurchases                    of common stock                                                                            |   |                                      | (190    | ) |   | (156 | ) |
| Net                    cash provided by financing activities                                                              |   |                                      | 16,760  |   |   | 10,343 |   |
| Net                    increase in cash and cash equivalents                                                              |   |                                      | 2,360   |   |   | 1,880 |   |
| Cash                    and cash equivalents, beginning of year                                                           |   |                                      | 2,281   |   |   | 5,779 |   |
| Cash                    and cash equivalents, end of period                                                               |   | $                                         | 4,641   |   | $ | 7,659 |   |

|   | (1) | Only                  individual line items in cash flows from operating activities have                  been                  restated. Total cash flows from operating, investing and financing                  activities were unaffected. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table            of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

| **1.** | **Organization                    and Nature of Operations** |
|--------|--------------------------------------------------------------|

| **2.** | **Basis                    of Presentation** |
|--------|----------------------------------------------|

**Stock          Based Compensation**

----

*Table              of Contents*

**BRIGHAM          EXPLORATION COMPANY**

**NOTES          TO THE CONSOLIDATED FINANCIAL STATEMENTS**

|                                                                                                                                                                        |   | **Three                    Months Ended****March                    31,**     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|
|                                                                                                                                                                        |   | **2005**                                                                      |   | **2004** |   |
|                                                                                                                                                                        |   | (In                    thousands, exceptper                    share amounts) |   |
|                                                                                                                                                                        |   |                                                                          |   |   |   |
| Net                    income, as reported (as restated for 2004)                                                                                                      |   | $                                                                             | 3,048  |   | $ | 4,925 |   |
| Add                    back: Stock compensation expense previously included in net                    income                                                           |   |                                                                          | 111    |   |   | 121 |   |
| Effect                    of total employee stock-based compensation expense, determined                    under fair                    value method for all awards  |   |                                                                          | (361   | ) |   | (345 | ) |
| Pro                    forma                                                                                                                                           |   | $                                                                             | 2,798  |   | $ | 4,701 |   |
| Net                    income per share:                                                                                                                                    |        |                                                                          |   |  |  |   |   |
| Basic,                    as reported                                                                                                                                  |   | $                                                                             | 0.07   |   | $ | 0.13 |   |
| Basic,                    pro forma                                                                                                                                    |   |                                                                          | 0.07   |   |   | 0.12 |   |
|                                                                                                                                                                        |   |                                                                          |   |   |   |   |   |
| Diluted,                    as reported                                                                                                                                     |   | $                                                                             | 0.07   |   | $ | 0.12 |   |
| Diluted,                    pro forma                                                                                                                                       |   |                                                                          | 0.06   |   |   | 0.12 |   |

| **3.** | **Restatement** |
|--------|-----------------|

|                                                                             |   | **Three                    months ended March 31, 2004** |   |
|----------------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                                                             |   | **As                    Reported**                       |   | **Restated** |   |
|                                                                             |   |                                                     |   |   |   |
| Consolidated                    Statements of Operations:                        |   |                                                     |   |   |   |
| Depletion                    of oil and natural gas properties                   |   | $                                                        | 4,880  |   | $ | 5,124 |   |
| Deferred                    income tax benefit (expense)                         |   |                                                     | (2,500 | ) |   | (2,420 | ) |
| Net                    income (loss) available to common stockholders            |   |                                                     | 5,089  |   |   | 4,925 |   |
| Net                    income (loss) per share available to common stockholders: |   |                                                     |   |   |   |   |   |
| Basic                                                                            |   | $                                                        | 0.13   |   | $ | 0.13 |   |
| Diluted                                                                          |   | $                                                        | 0.13   |   | $ | 0.12 |   |

----

*Table              of Contents*

**BRIGHAM          EXPLORATION COMPANY**

**NOTES          TO THE CONSOLIDATED FINANCIAL STATEMENTS**

| **4.** | **Commitments                    and Contingencies** |
|--------|------------------------------------------------------|

----

*Table              of Contents*

**BRIGHAM          EXPLORATION COMPANY**

**NOTES          TO THE CONSOLIDATED FINANCIAL STATEMENTS**

| **5.** | **Earnings                    Per Common Share** |
|--------|--------------------------------------------------|

|                                                                                                                |   | **Three                    Months Ended****March                    31,** |    |
|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|---------|
|                                                                                                                |   | **2005**                                                                  |    | **2004** |   |
|                                                                                                                |   |                                                                      |    |   |   |
| Weighted                    average common shares outstanding - basic                                          |   |                                                                      | 42,124  |   |   | 39,166 |   |
| Plus:                    Potential common shares                                                                    |   |                                                                      |    |   |   |   |   |
| Stock                    options and restricted stock                                                          |   |                                                                      | 1,042   |   |   | 1,045 |   |
|                                                                                                                |   |                                                                      |    |   |   |   |   |
| Weighted                    average common shares outstanding - diluted                                        |   |                                                                      | 43,166  |   |   | 40,211 |   |
|                                                                                                                |   |                                                                      |    |   |   |   |   |
| Stock                    options excluded from diluted EPS due to the anti-dilutive                    effect  |   |                                                                      | 717,500 |   |   | 61,000 |   |

| **6.** | **Derivative                    Instruments and Hedging                    Activities** |
|--------|-----------------------------------------------------------------------------------------|

----

*Table              of Contents*

**BRIGHAM          EXPLORATION COMPANY**

**NOTES          TO THE CONSOLIDATED FINANCIAL STATEMENTS**

|                                                                             |   | **Three                    Months Ended March 31,** |   |
|----------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                             |   | **2005**                                            |   | **2004** |   |
| ***Natural                    Gas***                                             |   |                                                |   |   |   |
| Average                    price per Mcf as reported (including hedging results) |   | $                                                   | 5.80   |   | $ | 5.69 |   |
| Average                    price per Mcf realized (excluding hedging results)    |   | $                                                   | 5.80   |   | $ | 5.79 |   |
| Increase                    (decrease) in revenue (in thousands)                 |   | $                                                   | (10    | ) | $ | (216 | ) |
| ***Oil***                                                                        |   |                                                |   |   |   |   |   |
| Average                    price per Bbl as reported (including hedging results) |   | $                                                   | 43.74  |   | $ | 30.84 |   |
| Average                    price per Bbl realized (excluding hedging results)    |   | $                                                   | 48.33  |   | $ | 34.01 |   |
| Increase                    (decrease) in revenue (in thousands)                 |   | $                                                   | (541   | ) | $ | (505 | ) |

|                                                                      |   | **Three                    Months Ended March 31,** |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                      |   | **2005**                                            |   | **2004** |   |
| Increase                    (decrease) in earnings due to ineffectiveness |   | $                                                   | (616   | ) | $ | 127 |   |

***Natural          Gas and Crude Oil Derivative Contracts***

***Cash-flow          hedges***

----

*Table              of Contents*

**BRIGHAM          EXPLORATION COMPANY**

**NOTES          TO THE CONSOLIDATED FINANCIAL STATEMENTS**

|                                                |   |                         |                              |                                        |   | **Notional                    Amount** |   |                       |    |
|-----------------------------------------------------|--------|------------------------------|-----------------------------------|---------------------------------------------|--------|----------------------------------------|--------|----------------------------|---------|
| **Settlement                    Period**            |   | **Derivative****Instrument** |                              | **Hedge                    Strategy**  |   | **Gas**** (MMBTU)**               |   | **Oil**** (Barrels)** |    | **Nymex****Reference****Price**  |   |
| ***Costless                    Collars***           |   |                         |                              |                                        |   |                                   |   |                       |    |   |   |
| 04/01/05                    - 06/30/05              |   |                         | Purchased                    put  |                                        |   | Cash                    flow           |   |                       | 318,500 |   |   |   |   | $ | 5.00 |   |
|                                                |   |                         | Written                    call   |                                        |   | Cash                    flow           |   |                       | 318.500 |   |   |   |   |   | 7.40 |   |
| 04/01/05                    - 06/30/05              |   |                         | Purchased                    put  |                                        |   | Cash                    flow           |   |                       |    |   |   | 11,830 |   | $ | 29.00 |   |
|                                                |   |                         | Written                      call |                                        |   | Cash                    flow           |   |                       |    |   |   | 11,830 |   |   | 36.00 |   |
| 04/01/05                    - 06/30/05              |   |                         | Purchased                    put  |                                        |   | Cash                    flow           |   |                       | 91,000  |   |   |   |   | $ | 4.00 |   |
|                                                |   |                         | Written                    call   |                                        |   | Cash                    flow           |   |                       | 91,000  |   |   |   |   |   | 5.40 |   |
| 04/01/05                    - 06/30/05              |   |                         | Purchased                    put  |                                        |   | Cash                    flow           |   |                       | 45,500  |   |   |   |   | $ | 4.25 |   |
|                                                |   |                         | Written                    call   |                                        |   | Cash                    flow           |   |                       | 45,500  |   |   |   |   |   | 4.52 |   |
| 04/01/05                    - 06/30/05              |   |                         | Purchased                    put  |                                        |   | Cash                    flow           |   |                       |    |   |   | 6,825 |   | $ | 23.00 |   |
|                                                |   |                         | Written                    call   |                                        |   | Cash                    flow           |   |                       |    |   |   | 6,825 |   |   | 26.45 |   |
| 04/01/05                    - 10/31/05              |   |                         | Purchased                    put  |                                        |   | Cash                    flow           |   |                       | 420,000 |   |   |   |   | $ | 5.45 |   |
|                                                |   |                         | Written                    call   |                                        |   | Cash                    flow           |   |                       | 420,000 |   |   |   |   |   | 8.00 |   |
|                                                |   |                         |                              |                                        |   |                                   |   |                       |    |   |   |   |   |   |   |   |
| ***Three                    Way Costless Collars*** |   |                         |                              |                                        |   |                                   |   |                       |         |   |   |   |   |   |   |   |
| 07/01/05                    - 10/31/05              |   |                         | Purchased                    put  |                                        |   | Cash                    flow           |   |                       | 400,000 |   |   |   |   | $ | 6.00 |   |
|                                                |   |                         | Written                    call   |                                        |   | Cash                    flow           |   |                       | 400,000 |   |   |   |   |   | 7.20 |   |
|                                                |   |                         | Written                    put    |                                        |   | Undesignated                           |   |                       | 400,000 |   |   |   |   |   | 5.00 |   |
| 07/01/05                    - 12/31/05              |   |                         | Purchased                    put  |                                        |   | Cash                    flow           |   |                       |    |   |   | 30,000 |   | $ | 40.00 |   |
|                                                |   |                         | Written                    call   |                                        |   | Cash                    flow           |   |                       |    |   |   | 30,000 |   |   | 53.00 |   |
|                                                |   |                         | Written                    put    |                                        |   | Undesignated                           |   |                       |    |   |   | 30,000 |   |   | 30.00 |   |
| 11/01/05                    - 03/31/06              |   |                         | Purchased                    put  |                                        |   | Cash                    flow           |   |                       | 250,000 |   |   |   |   | $ | 6.75 |   |
|                                                |   |                         | Written                    call   |                                        |   | Cash                    flow           |   |                       | 250,000 |   |   |   |   |   | 8.80 |   |
|                                                |   |                         | Written                    put    |                                        |   | Undesignated                           |   |                       | 250,000 |   |   |   |   |   | 5.50 |   |

|                                                |   |                         |                             |                                        |   | **Notional                    Amount** |   |                       |    |
|-----------------------------------------------------|--------|------------------------------|----------------------------------|---------------------------------------------|--------|----------------------------------------|--------|----------------------------|---------|
| **Settlement                    Period**            |   | **Derivative****Instrument** |                             | **Hedge                    Strategy**  |   | **Gas**** (MMBTU)**          |   | **Oil**** (Barrels)** |    | ** ****Nymex****Reference****Price**  |   |
| ***Three                    Way Costless Collars*** |   |                         |                             |                                        |   |                                   |   |                       |    |   |   |
| 06/01/05                    - 03/31/06              |   |                         | Purchased                    put |                                        |   | Cash                    flow           |   |                       |    |   |   | 60,000 |   | $ | 48.00 |   |
|                                                |   |                         | Written                    call  |                                        |   | Cash                    flow           |   |                       |    |   |   | 60,000 |   |   | 60.70 |   |
|                                                |   |                         | Written                    put   |                                        |   | Undesignated                           |   |                       |    |   |   | 60,000 |   |   | 38.00 |   |
| 07/01/05                    - 10/31/05              |   |                         | Purchased                    put |                                        |   | Cash                    flow           |   |                       | 240,000 |   |   |   |   | $ | 7.00 |   |
|                                                |   |                         | Written                    call  |                                        |   | Cash                    flow           |   |                       | 240,000 |   |   |   |   |   | 7.76 |   |
|                                                |   |                         | Written                    put   |                                        |   | Undesignated                           |   |                       | 240,000 |   |   |   |   |   | 5.75 |   |
| 11/01/05                    - 03/31/06              |   |                         | Purchased                    put |                                        |   | Cash                    flow           |   |                       | 350,000 |   |   |   |   | $ | 8.00 |   |
|                                                |   |                         | Written                    call  |                                        |   | Cash                    flow           |   |                       | 350,000 |   |   |   |   |   | 9.75 |   |
|                                                |   |                         | Written                    put   |                                        |   | Undesignated                           |   |                       | 350,000 |   |   |   |   |   | 6.50 |   |

***Interest          rate swap***

----

*Table              of Contents*

**BRIGHAM          EXPLORATION COMPANY**

**NOTES          TO THE CONSOLIDATED FINANCIAL STATEMENTS**

|                                                            |   | **March                    31,** |    |
|-----------------------------------------------------------------|--------|----------------------------------|---------|
|                                                            |   | **2005**                         |    | **2004** |   |
|                                                            |   |                             |    |   |   |
| Other                    current liabilities               |   | $                                | (1,808  | ) | $ | (3,111 | ) |
| Other                    noncurrent liabilities            |   |                             | — |   |   | (374 | ) |
| Other                    noncurrent assets                 |   |                             | 482     |   |   | 3 |   |
| Net                    fair value of derivative contracts  |   | $                                | (1,326  | ) | $ | (3,482 | ) |

| **7.** | **Asset                    Retirement Obligations** |
|--------|-----------------------------------------------------|

|                                                                       |   | **Three                    Months Ended****March                    31,** |    |
|----------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|---------|
|                                                                       |   | **2005**                                                                  |    | **2004** |   |
|                                                                       |   |                                                                      |    |   |   |
| Beginning                    asset retirement obligations                  |   | $                                                                         | 2,896   |   | $ | 2,320 |   |
| Liabilities                    incurred for new wells placed on production |   |                                                                      | 26      |   |   | 101 |   |
| Liabilities                    settled                                     |   |                                                                      | — |   |   | (36 | ) |
| Accretion                    of discount on asset retirement obligations   |   |                                                                      | 39      |   |   | 37 |   |
|                                                                       |   | $                                                                         | 2,961   |   | $ | 2,422 |   |

----

*Table              of Contents*

| **8.** | **Income                    Taxes** |
|--------|-------------------------------------|

|                                                                |   | **March                    31, 2005** |    | **December                    31, 2004** |   |
|---------------------------------------------------------------------|--------|---------------------------------------|---------|------------------------------------------|--------|
| Deferred                    tax assets                              |   |                                  |    |                                     |   |
| Current:                                                            |   |                                  |    |                                     |   |
| Unrealized                    hedging losses                        |   | $                                     | 268     |                                     | $      | 271 |   |
| Derivative                    assets                                |   |                                  | 196     |                                     |   | 11 |   |
| Current                                                             |   |                                  | 464     |                                     |   | 282 |   |
|                                                                |   |                                  |    |                                     |   |   |   |
| Non-current:                                                        |   |                                  |    |                                     |   |   |   |
| Net                    operating loss carryforwards                 |   |                                  | 38,600  |                                     |   | 36,743 |   |
| Capital                    loss carryforwards                       |   |                                  | 634     |                                     |   | 634 |   |
| Stock                    compensation                               |   |                                  | 761     |                                     |   | 816 |   |
| Asset                    retirement obligations                     |   |                                  | 1,036   |                                     |   | 1,014 |   |
| Other                                                               |   |                                  | 31      |                                     |   | 31 |   |
| Gross                    non-current                                |   |                                  | 41,062  |                                     |   | 39,238 |   |
| Valuation                    allowance                              |   |                                  | (634    | )                                        |   | (634 | ) |
| Non-current                                                         |   |                                  | 40,428  |                                     |   | 38,604 |   |
| Gross                    deferred tax assets                        |   |                                  | 40,892  |                                     |   | 38,886 |   |
|                                                                |   |                                  |    |                                     |   |   |   |
| Deferred                    tax liabilities                         |   |                                  |    |                                     |   |   |   |
| Current:                                                            |   |                                  |    |                                     |   |   |   |
| Derivative                    liabilities                           |   |                                  | — |                                     |   | (28 | ) |
| Gas                    imbalances                                   |   |                                  | (15     | )                                        |   | (15 | ) |
| Current                                                             |   |                                  | (15     | )                                        |   | (43 | ) |
|                                                                |   |                                  |    |                                     |   |   |   |
| Non-current:                                                        |   |                                  |    |                                     |   |   |   |
| Depreciable                    and depletable property              |   |                                  | (51,163 | )                                        |   | (47,635 | ) |
| Other                                                          |   |                                  | (37     | )                                        |   | — |   |
| Non-current                                                         |   |                                  | (51,200 | )                                        |   | (47,635 | ) |
| Gross                    deferred tax liabilities                   |   |                                  | (51,215 | )                                        |   | (47,678 | ) |
| Total                    deferred tax asset (liability)        |   | $                                     | (10,323 | )                                        | $      | (8,792 | ) |
|                                                                |   |                                  |    |                                     |   |   |   |
| Reflected                    in the accompanying balance sheets as: |   |                                  |    |                                     |   |   |   |
| Current                    deferred income tax asset                |   | $                                     | 449     |                                     | $      | 239 |   |
| Non-current                    deferred income tax liability        |   |                                  | (10,772 | )                                        |   | (9,031 | ) |
|                                                                |   | $                                     | (10,323 | )                                        | $      | (8,792 | ) |

----

*Table              of Contents*

**BRIGHAM          EXPLORATION COMPANY**

**NOTES          TO THE CONSOLIDATED FINANCIAL STATEMENTS**

| **9.** | **Accounting                    Pronouncements** |
|--------|--------------------------------------------------|

----

*Table              of Contents*

| **ITEM                    2.** | **MANAGEMENT’S                    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                    OPERATIONS** |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|

**Overview          of First Quarter 2005**

----

*Table              of Contents*

**Capital          Commitments**

***Capital          Expenditures***

|   | · | cost                    of acquiring and maintaining our lease acreage position and our                    seismic                    resources; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | cost                    of drilling and completing new oil and natural gas                    wells; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | cost                    of installing new production                    infrastructure; |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | cost                    of maintaining, repairing and enhancing existing oil and natural                    gas                    wells; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | cost                    related to plugging and abandoning unproductive or uneconomic                    wells;                    and, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | indirect                    costs related to our exploration activities, including payroll                    and other                    expenses attributable our exploration professional                    staff. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                |   | **2005                    Budget**  |    | **Amount****Spent                    Through****03/31/2005** |   | **Amount****Remaining                    (1)** |   |
|-----------------------------------------------------|--------|------------------------------------------|---------|--------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                |   | **(In                    thousands)**    |    |
| Drilling                                            |   | $                                        | 70,308  |                                                         | $      | 17,458                                         |   | $ | 52,850 |   |
| Net                    land and seismic             |   |                                     | 13,065  |                                                         |   | 4,815                                          |   |   | 8,250 |   |
| Capitalized                    interest and G&A |   |                                     | 6,184   |                                                         |   | 1,601                                          |   |   | 4,583 |   |
| Asset                    retirement obligation      |   |                                     | — |                                                         |   | 26                                             |   |   | — |   |
| Other                    assets                     |   |                                     | 615     |                                                         |   | 65                                             |   |   | 550 |   |
| Total                                               |   | $                                        | 90,172  |                                                         | $      | 23,965                                         |   | $ | 66,233 |   |

----

*Table              of Contents*

|   | · | commodity                    prices; |
|--------|--------|--------------------------------------|

|   | · | production                    from our existing producing wells; |
|--------|--------|------------------------------------------------------------------|

|   | · | the                    results of our current exploration and development drilling                    efforts; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | economic                    and industry conditions at the time of drilling, including the                    availability of drilling equipment;                    and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                    availability of more economically attractive prospects. |
|--------|--------|--------------------------------------------------------------------------------|

***Senior          Credit Facility***

***Senior          Subordinated Notes***

***Mandatorily          Redeemable Preferred Stock***

**Capital          Resources**

----

*Table              of Contents*

***Net          cash provided by operating activities***

***Senior          Credit Facility***

***Access          to Capital Markets***

----

*Table              of Contents*

**Results          of Operations**

*Comparison          of the three-month periods ended March 31, 2005 and 2004*

***Production          volumes***

|                                                  |   | **Three                    Months Ended March 31,**  |   |
|-------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                                  |   | **2005**                                             |   | **%                    Change**  |   | **2004**  |   |
| Oil                    (MBbls)                        |   |                                                      | 118    |   |   | (26%) |   |   | 160 |   |
| Natural                    gas (MMcf)                 |   |                                                      | 1,994  |   |   |                      (5%) |   |   | 2,093 |   |
| Total                    (MMcfe)(1)                   |   |                                                      | 2,700  |   |   | (11%) |   |   | 3,050 |   |
| Average                    daily production (MMcfe/d) |   |                                                      | 30.0   |   |   |   |   |   | 33.9 |   |

| (1) |   | Mcfe                    is defined one million cubic feet equivalent of natural gas,                    determined                    using the ratio of six Mcf of natural gas to one Bbl of crude                    oil,                    condensate or natural gas liquids. |
|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Hedging          Results**

|                                                             |   | **Three                    Months Ended March 31,**  |    |
|------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|
|                                                             |   | **2005**                                             |    | **%                    Change**  |   | **2004**  |   |
| ***Oil                    swaps***                               |   |                                                      |    |   |   |   |   |
| Volumes                    (Bbls)                                |   |                                                      | — |   |   | (100%) |   |   | 29,575 |   |
| Average                    swap price ($ per Bbl)                |   | $                                                         | — |   |   | (100%) |   | $ | 25.35 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                         | — |   |   | (100%) |   | $ | (290 | ) |
| ***Oil                    collars***                             |   |                                                      |    |   |   |   |   |   |   |   |
| Volumes                    (Bbls)                                |   |                                                      | 27,450  |   |   | (40%) |   |   | 45,500 |   |
| Average                    floor price ($ per Bbl)               |   | $                                                         | 25.56   |   |   | 11% |   | $ | 23.00 |   |
| Average                    ceiling price ($ per Bbl)             |   | $                                                         | 30.18   |   |   |  (1%) |   | $ | 30.43 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                         | (541    | ) |   | 152%   |   | $ | (215 | ) |
| ***Total                    oil***                          |   |                                                      |    |   |   |   |   |   |   |   |
| Volumes                    (Bbls)                                |   |                                                      | 27,450  |   |   | (63%) |   |   | 75,075 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                         | (541    | ) |   |                      7% |   | $ | (505 | ) |
| ***Natural                    gas swaps***                       |   |                                                      |    |   |   |   |   |   |   |   |
| Volumes                    (MMbtu)                               |   |                                                      | — |   |   | (100%) |   |   | 295,750 |   |
| Average                    swap price ($ per MMbtu)              |   | $                                                         | — |   |   | (100%) |   | $ | 4.96 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                         | — |   |   | (100%) |   | $ | (216 | ) |
| ***Natural                    gas collars***                     |   |                                                      |    |   |   |   |   |   |   |   |
| Volumes                    (MMbtu)                               |   |                                                      | 727,500 |   |   |  33% |   |   | 546,000 |   |
| Average                    floor price ($ per MMbtu)             |   | $                                                         | 5.16    |   |   |  25% |   | $ | 4.13 |   |
| Average                    ceiling price ($ per MMbtu)           |   | $                                                         | 7.26    |   |   | (14%) |   | $ | 8.43 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                         | (10     | ) |   | NM |   | $ | — |   |
| ***Total                    natural gas***                       |   |                                                      |    |   |   |   |   |   |   |   |
| Volumes                    (MMbtu)                               |   |                                                      | 727,500 |   |   | (14%) |   |   | 841,750 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                         | (10     | ) |   | (95%) |   | $ | (216 | ) |

----

*Table              of Contents*

**Commodity          prices and revenues**

|                                                                  |   | **Three                    months ended March 31,**            |   |
|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                                                  |   | **2005**                                                       |   | **%                    Change**  |   | **2004**  |   |
|                                                                  |   | **(In                    thousands, except per unit measurements)** |   |
| **Revenue                    from the sale of oil and natural gas:**  |   |                                                                |   |   |   |   |   |
| Oil                    sales                                          |   | $                                                                   | 5,689  |   |   |   5% |   | $ | 5,427 |   |
| Gain                    (loss) due to hedging                         |   |                                                                | (541   | ) |   |   7% |   |   | (505 | ) |
| Total                    revenue from the sale of oil                 |   | $                                                                   | 5,148  |   |   |   5% |   | $ | 4,922 |   |
|                                                                  |   |                                                                |   |   |   |   |   |   |   |   |
| Natural                    gas sales                                  |   | $                                                                   | 11,565 |   |   |   (5%) |   | $ | 12,113 |   |
| Gain                    (loss) due to hedging                         |   |                                                                | (10    | ) |   | (95%) |   |   | (216 | ) |
| Total                    revenue from the sale of natural gas         |   | $                                                                   | 11,555 |   |   |  (3%) |   | $ | 11,897 |   |
|                                                                  |   |                                                                |   |   |   |   |   |   |   |   |
| Oil                    and natural gas sales                          |   | $                                                                   | 17,254 |   |   | (2%) |   | $ | 17,540 |   |
| Gain                    (loss) due to hedging                         |   |                                                                | (551   | ) |   | (24%) |   |   | (721 | ) |
| Total                    revenue from the sale of oil and natural gas |   | $                                                                   | 16,703 |   |   |                       (1%) |   | $ | 16,819 |   |
|                                                                  |   |                                                                |   |   |   |   |   |   |   |   |
| **Average                    prices:**                                |   |                                                                |   |   |   |   |   |   |   |   |
| Oil                    sales price (per Bbl)                          |   | $                                                                   | 48.33  |   |   | 42% |   | $ | 34.01 |   |
| Gain                    (loss) due to hedging (per Bbl)               |   |                                                                | (4.59  | ) |   | 45% |   |   | (3.17 | ) |
| Realized                    oil price (per Bbl)                       |   | $                                                                   | 43.74  |   |   | 42% |   | $ | 30.84 |   |
|                                                                  |   |                                                                |   |   |   |   |   |   |   |   |
| Natural                    gas sales price (per Mcf)                  |   | $                                                                   | 5.80   |   |   |   0% |   | $ | 5.79 |   |
| Gain                    (loss) due to hedging (per Mcf)               |   |                                                                | (0.00  | ) |   | (100%)   |   |   | (0.10 | ) |
| Realized                    natural gas price (per Mcf)               |   | $                                                                   | 5.80   |   |   |   2% |   | $ | 5.69 |   |
|                                                                  |   |                                                                |   |   |   |   |   |   |   |   |
| Natural                    gas equivalent sales price (per Mcfe)      |   | $                                                                   | 6.39   |   |   | 11% |   | $ | 5.75 |   |
| Gain                    (loss) due to hedging (per Mcfe)              |   |                                                                | (0.20  | ) |   | (17%) |   |   | (0.24 | ) |
| Realized                    natural gas equivalent (per Mcfe)         |   | $                                                                   | 6.19   |   |   | 12% |   | $ | 5.51 |   |

|                                                                  |   | **2005****to                    2004**  |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------|--------|
| **Change                    in revenue from the sale of oil**         |   |                                         |   |
| Price                    variance impact                              |   | $                                            | 1,686  |   |
| Volume                    variance impact                             |   |                                         | (1,424 | ) |
| Cash                    settlement of hedging contracts               |   |                                         | (36    | ) |
| Total                    change                                       |   | $                                            | 226    |   |
| **Change                    in revenue from the sale of natural gas** |   |                                         |   |   |
| Price                    variance impact                              |   | $                                            | 20     |   |
| Volume                    variance impact                             |   |                                         | (568   | ) |
| Cash                    settlement of hedging contracts               |   |                                         | 206    |   |
| Total                    change                                       |   | $                                            | (342   | ) |

----

*Table              of Contents*

|   | · | An                    decrease in production volumes for the quarter resulted in a                    $2 million                    decrease in revenues from the sale of oil and natural gas; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A                    42% increase in the sales price we received from the sale oil                    and a slight                    increase in sales price we received from the sale of natural                    gas partially                    offset the decrease due to lower production by $1.7 million;                    and, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A                    24% decrease in losses from the cash settlement of derivative                    commodity                    contracts also partially offset the decrease in revenue due to                    a decrease                    in production. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Other          revenue*

**Operating          costs and expenses**

*Production          costs. *

|                                                 |   | **Three                    months ended March 31,**            |   |
|------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                                 |   | **2005**                                                       |   | **%                    Change**  |   | **2004**  |   |
|                                                 |   | **(In                    thousands, except per unit measurements)** |   |
| **Production                    cost:**              |   |                                                                |   |   |   |   |   |
| Operating                    & maintenance       |   | $                                                                   | 1,422  |   |   | 39% |   | $ | 1,026 |   |
| Expensed                    workovers                |   |                                                                | 524    |   |   | 137%   |   |   | 221 |   |
| Ad                    valorem taxes                  |   |                                                                | 272    |   |   | 68% |   |   | 162 |   |
| Total                    lease operating expenses    |   | $                                                                   | 2,218  |   |   | 57% |   | $ | 1,409 |   |
|                                                 |   |                                                                |   |   |   |   |   |   |   |   |
| Production                    taxes                  |   |                                                                | 802    |   |   |                      (7%) |   |   | 863 |   |
| Total                    production expenses         |   | $                                                                   | 3,020  |   |   | 33% |   | $ | 2,272 |   |
|                                                 |   |                                                                |   |   |   |   |   |   |   |   |
| **Production                    cost ($ per Mcfe):** |   |                                                                |   |   |   |   |   |   |   |   |
| Operating                    & maintenance       |   | $                                                                   | 0.53   |   |   | 56% |   | $ | 0.34 |   |
| Expensed                    workovers                |   |                                                                | 0.19   |   |   | 171%   |   |   | 0.07 |   |
| Ad                    valorem taxes                  |   |                                                                | 0.10   |   |   | 100%   |   |   | 0.05 |   |
| Total                    lease operating expenses    |   | $                                                                   | 0.82   |   |   | 78% |   | $ | 0.46 |   |
|                                                 |   |                                                                |   |   |   |   |   |   |   |   |
| Production                    taxes                  |   |                                                                | 0.30   |   |   |                      7% |   |   | 0.28 |   |
| Total                    production expenses         |   | $                                                                   | 1.12   |   |   | 51% |   | $ | 0.74 |   |

|   | · | An                    increase in the number of wells we have producing. In the future                    we                    anticipate that our total production cost will increase as we                    add new                    wells and production facilities and continue to maintain production                    from                    existing maturing properties; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An                    increase in expensed workover cost; |
|--------|--------|-----------------------------------------------------------|

|   | · | An                    increase in cost for compressor rental and maintenance, salt                    water                    disposal, contract labor and measurement services, treating and                    miscellaneous operating and maintenance were the primary reasons                    for the                    increase in operating and maintenance                    expenses; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An                    increase in ad valorem taxes due to higher oil and natural gas                    prices                    during 2004; and, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A                    decrease in production taxes due to a decrease in production                    volumes that                    was partially offset by increases in commodity                    prices. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table              of Contents*

|   | · | A                    decline in first quarter 2005                    production; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | An                    increase in cost for compressor rental and maintenance, salt                    water                    disposal, contract labor and measurement services, treating and                    miscellaneous operating and maintenance were the primary reason                    for the                    increase in operating and maintenance                    expenses; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An                    increase in expensed workover cost;                    and, |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | Ad                    valorem taxes increased due to higher oil and natural gas prices                    during                    2004. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

*General          and administrative expenses. *

|                                                               |   | **Three                    months ended March 31,**            |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                                               |   | **2005**                                                       |   | **%                    Change**  |   | **2004**  |   |
|                                                               |   | **(In                    thousands, except per unit measurements)** |   |
| General                    and administrative cost                 |   | $                                                                   | 2,303  |   |   |   (7%) |   | $ | 2,464 |   |
| Capitalized                    general and administrative cost     |   |                                                                | (1,205 | ) |   |   (3%) |   |   | (1,244 | ) |
| General                    and administrative expense              |   | $                                                                   | 1,098  |   |   | (10%) |   | $ | 1,220 |   |
|                                                               |   |                                                                |   |   |   |   |   |   |   |   |
| General                    and administrative expense ($ per Mcfe) |   | $                                                                   | 0.41   |   |   |   3% |   | $ | 0.40 |   |

|   | · | A                    decrease in costs for employee payroll and payroll taxes, rent,                    travel and                    entertainment and financial reporting;                    and, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | These                    decreases were partially offset by increases in costs for employee                    training and continuing education, corporate insurance and director                    fees                    and expenses. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Depletion          of oil and natural gas properties. *

|                                                                    |   | **Three                    months ended March 31,**            |   |
|-------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                                                    |   | **2005**                                                       |   | **%                    Change**  |   | **2004**  |   |
|                                                                    |   |                                                                |   |   |   | **(Restated)** |   |
|                                                                    |   | **(In                    thousands, except per unit measurements)** |   |
| Depletion                    of oil and natural gas properties          |   | $                                                                   | 6,453  |   |   | 26% |   | $ | 5,124 |   |
|                                                                    |   |                                                                |   |   |   |   |   |   |   |   |
| Depletion                    of oil and natural gas properties per Mcfe |   | $                                                                   | 2.39   |   |   | 42% |   | $ | 1.68 |   |

----

*Table              of Contents*

*Net          interest expense. *

|                                                                    |   | **Three                    months ended March 31,**  |   |
|-------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                                                    |   | **2005**                                             |   | **%                    Change**  |   | **2004**  |   |
|                                                                    |   | **(In                    thousands)**                     |   |
| Interest                    on senior credit facility                   |   | $                                                         | 323    |   |   | 75% |   | $ | 185 |   |
| Interest                    on senior subordinated notes                |   |                                                      | 378    |   |   | (14%) |   |   | 439 |   |
| Commitment                    fees                                      |   |                                                      | 38     |   |   | (30%) |   |   | 54 |   |
| Dividend                    on mandatorily redeemable preferred stock   |   |                                                      | 188    |   |   |                       7% |   |   | 175 |   |
| Amortization                    of deferred loan and debt issuance cost |   |                                                      | 126    |   |   | (34%) |   |   | 192 |   |
| Other                    general interest expense                       |   |                                                      | 3      |   |   | (63%) |   |   | 8 |   |
| Capitalized                    interest expense                         |   |                                                      | (315   | ) |   | 16% |   |   | (271 | ) |
| Net                    interest expense                                 |   | $                                                         | 741    |   |   |                      (5%) |   | $ | 782 |   |
|                                                                    |   |                                                      |   |   |   |   |   |   |   |   |
| Weighted                    average debt outstanding                    |   | $                                                         | 61,505 |   |   | 13% |   | $ | 54,671 |   |
| Average                    interest rate on outstanding indebtedness(a) |   |                                                      | 6.1    | % |   |   |   |   | 6.3 | % |

| · | An                    increase in the interest rate that we paid on borrowings under                    our senior                    credit facility during the first quarter 2005. The lower margin                    that                    resulted from our January 21, 2005 amended and restated senior                    credit                    facility was more than offset by the higher Eurodollar rate in                    the first                    quarter of 2005; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                    $5.5 million increase in the average debt outstanding under our                    senior                    credit facility in the first quarter of 2005 versus that in the                    first                    quarter of 2004; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                    7% increase in the dividends that we paid on our mandatorily                    redeemable                    preferred stock. We issued 9,393 shares of preferred stock to                    pay these                    dividends; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                    decrease in the interest rate that we paid on our senior subordinated                    notes, |
|--------|----------------------------------------------------------------------------------------------------------------------|

| · | A                    decrease in deferred loan and debt issuance cost amortized during                    the                    first quarter 2005; and, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                    16% increase in the amount of interest that we capitalized during                    first                    quarter of 2005. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

*Other          income (expense*

|                                                                                                                                                                        |   | **Three                    months ended March 31,**  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                                                                                                                                                        |   | **2005**                                             |   | **%                    Change**  |   | **2004**  |   |
|                                                                                                                                                                        |   | **(In                    thousands)**                     |   |
| Non-cash                    gain (loss) due to change in fair market value of derivative                    contracts not                    designated as cash flow hedges |   | $                                                         | 10     |   |   | NM |   | $ | — |   |
| Non-cash                    gain (loss) for ineffective portion of cash flow hedges                                                                                         |   |                                                      | (616   | ) |   | NM |   |   | 127 |   |
| Other                                                                                                                                                                       |   |                                                      | 75     |   |   | NM |   |   | — |   |
| Other                    income (loss)                                                                                                                                      |   | $                                                         | (531   | ) |   | NM |   | $ | 127 |   |

----

*Table              of Contents*

|                                                             |   | **Three                    months ended March 31,** |    |
|------------------------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                                             |   | **2005**                                       |    | **%                    Change** |   | **2004**  |   |
| ***Written                    puts***                            |   |                                                |    |   |   |   |   |
| Volumes                    (MMbtu)                               |   |                                                | 210,000 |   |   | NM |   |   | — |   |
| Average                    price ($ per MMbtu)                   |   | $                                                   | 5.50    |   |   | NM |   | $ | — |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                   | — |   |   | NM |   | $ | — |   |

*Income          taxes:*

**Analysis          of Changes In Cash and Cash Equivalents**

|                                                           |   | **Three                    months ended March 31,**  |    |
|----------------------------------------------------------------|--------|-----------------------------------------------------------|---------|
|                                                           |   | ** ** **2005**                             |    | **%                    Change**  |   | ** ** **2004**  |   |
|                                                           |   |                                                      |    |   |   | **(Restated)** |   |
|                                                           |   | **(In                    thousands)**                     |    |
| Net                    income                                  |   | $                                                         | 3,048   |   |   | (38%) |   | $ | 4,925 |   |
| Non-cash                    items                              |   |                                                      | 9,279   |   |   | 16% |   |   | 8,002 |   |
| Changes                    in working capital and other items  |   |                                                      | (6,083  | ) |   | 40% |   |   | (4,333 | ) |
| Cash                    flows provided by operating activities |   | $                                                         | 6,244   |   |   | (27%) |   | $ | 8,594 |   |
| Cash                    flows used by investing activities     |   |                                                      | (20,644 | ) |   | 21% |   |   | (17,057 | ) |
| Cash                    flows provided by financing activities |   |                                                      | 16,760  |   |   | 62% |   |   | 10,343 |   |
| Net                    increase in cash and cash equivalents   |   | $                                                         | 2,360   |   |   | 26% |   | $ | 1,880 |   |

***Analysis          of net cash provided by operating activities***

| · | Net                    cash provided by operating activities decreased by $116,000 due                    to a                    decrease in our revenue from the sale of oil and natural gas.                    This                    decrease in revenue was due to lower production volumes in the                    first                    quarter of 2005. This decrease in revenue was partially offset                    by an                    increase in revenue due to an increase in the prices that we                    received for                    oil and natural gas and a decrease in losses on the settlement                    of our                    derivative contracts; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An                    increase in production cost for the first quarter 2005 resulted                    in a                    $748,000 decrease in net cash provided by operating activities.                    This                    increase in our production cost was partially offset by a $122,000                    decrease in our first quarter 2005 general and administrative                    expenses; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table              of Contents*

| · | The                    collection of accounts receivable in excess of the payment of                    accounts                    payable increased net cash provided by operating activities by                    $1.4                    million; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An                    increase in royalties paid in the first quarter 2005 when compared                    to the                    first quarter of 2004 resulted in a $2.5 million decrease in                    net cash                    provided by operating activities; and, |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                    decrease in advances paid to us by participants in our 3-D seismic                    projects and certain wells decreased net cash provided by operating                    activities by $392,000. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Working          Capital**

***Analysis          of changes in cash flows used in investing activities***

|                                                                            |   | **Three                    months ended March 31,**  |   |
|---------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                                                            |   | ** ** **2005**                             |   | **%****Change**  |   | ** ** **2004**  |   |
|                                                                            |   | **(In                    thousands)**                     |   |
| **Capital                    expenditures for oil and natural gas activities:** |   |                                                      |   |   |   |   |   |
| Drilling                                                                        |   | $                                                         | 17,458 |   |   | 39% |   | $ | 12,568 |   |
| Land                    and seismic                                             |   |                                                      | 4,815  |   |   | 71% |   |   | 2,817 |   |
| Capitalized                    cost (1)                                         |   |                                                      | 1,601  |   |   |                       1% |   |   | 1,587 |   |
| Asset                    retirement obligation                                  |   |                                                      | 26     |   |   | (74%) |   |   | 101 |   |
| Total                                                                           |   | $                                                         | 23,900 |   |   | 40% |   | $ | 17,073 |   |

***Analysis          of changes in cash flows from financing activities***

**Senior          Credit Facility**

**Senior          Subordinated Notes**

----

*Table              of Contents*

**Common          Stock Transactions**

|                                                     |   | **Shares                    Issued**  |    | **Net                    Proceeds**  |   |
|----------------------------------------------------------|--------|--------------------------------------------|---------|-------------------------------------------|--------|
|                                                     |   | **(In                    thousands)**      |    |
| ***2005                    common stock transactions:*** |   |                                       |    |                                      |   |
| Exercise                    of employee stock options    |   |                                       | 76,700  |                                      | $      | 251 |   |
|                                                     |   |                                       |    |                                      |   |   |   |
| ***2004                    common stock transactions:*** |   |                                       |    |                                      |   |   |   |
| Exercise                    of employee stock options    |   |                                       | 126,600 |                                      | $      | 310 |   |

**Other          Matters**

*Effects          of Inflation and Changes in Prices*

*Environmental          and Other Regulatory Matters*

*New          Accounting Pronouncements*

----

*Table              of Contents*

*Forward          Looking Information*

----

*Table              of Contents*

| **ITEM                    3.** | **QUANTITATIVE                    AND QUALITATIVE DISCLOSURE ABOUT MARKET                    RISK** |
|--------------------------------|-----------------------------------------------------------------------------------------------------|

**Derivative          Contracts**

|                                                |   |                 |                             |                                  |   | **Notional                    Amount** |   |                |    |
|-----------------------------------------------------|--------|----------------------|----------------------------------|---------------------------------------|--------|----------------------------------------|--------|---------------------|---------|
|                                                |   |                 |                             |                                  |   |                                   |   |                |    | **Nymex** |   |
|                                                |   | **Derivative**       |                             |                                  |   | **Gas**                                |   | **Oil**             |    | **Reference** |   |
| **Settlement                    Period**            |   | **Instrument**  |                             | **Hedge                    Strategy** |   | **(MMBTU)**                       |   | **(Barrels)**  |    | **Price**  |   |
| ***Costless                    Collars***           |   |                 |                             |                                  |   |                                   |   |                |    |   |   |
| 04/01/05                    - 06/30/05              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                | 318,500 |   |   |   |   | $ | 5.00 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                | 318.500 |   |   |   |   |   | 7.40 |   |
| 04/01/05                    - 06/30/05              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                |    |   |   | 11,830 |   | $ | 29.00 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                |    |   |   | 11,830 |   |   | 36.00 |   |
| 04/01/05                    - 06/30/05              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                | 91,000  |   |   |   |   | $ | 4.00 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                | 91,000  |   |   |   |   |   | 5.40 |   |
| 04/01/05                    - 06/30/05              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                | 45,500  |   |   |   |   | $ | 4.25 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                | 45,500  |   |   |   |   |   | 4.52 |   |
| 04/01/05                    - 06/30/05              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                |    |   |   | 6,825 |   | $ | 23.00 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                |    |   |   | 6,825 |   |   | 26.45 |   |
| 04/01/05                    - 10/31/05              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                | 420,000 |   |   |   |   | $ | 5.45 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                | 420,000 |   |   |   |   |   | 8.00 |   |
|                                                |   |                 |                             |                                  |   |                                   |   |                |    |   |   |   |   |   |   |   |
| ***Three                    Way Costless Collars*** |   |                 |                             |                                  |   |                                   |   |                |    |   |   |   |   |   |   |   |
| 07/01/05                    - 10/31/05              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                | 400,000 |   |   |   |   | $ | 6.00 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                | 400,000 |   |   |   |   |   | 7.20 |   |
|                                                |   |                 | Written                      put |                                  |   | Undesignated                           |   |                | 400,000 |   |   |   |   |   | 5.00 |   |
| 07/01/05                    - 12/31/05              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                |    |   |   | 30,000 |   | $ | 40.00 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                |    |   |   | 30,000 |   |   | 53.00 |   |
|                                                |   |                 | Written                    put   |                                  |   | Undesignated                           |   |                |    |   |   | 30,000 |   |   | 30.00 |   |
| 11/01/05                    - 03/31/06              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                | 250,000 |   |   |   |   | $ | 6.75 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                | 250,000 |   |   |   |   |   | 8.80 |   |
|                                                |   |                 | Written                    put   |                                  |   | Undesignated                           |   |                | 250,000 |   |   |   |   |   | 5.50 |   |

|                                                |   |                 |                             |                                  |   | **Notional                    Amount** |   |                |    |
|-----------------------------------------------------|--------|----------------------|----------------------------------|---------------------------------------|--------|----------------------------------------|--------|---------------------|---------|
|                                                |   |                 |                             |                                  |   |                                   |   |                |    | **Nymex** |   |
|                                                |   | **Derivative**       |                             |                                  |   | **Gas**                                |   | **Oil**             |    | **Reference** |   |
| **Settlement                    Period**            |   | **Instrument**  |                             | **Hedge                    Strategy** |   | **(MMBTU)**                       |   | **(Barrels)**  |    | **Price**  |   |
| ***Three                    Way Costless Collars*** |   |                 |                             |                                  |   |                                   |   |                |    |   |   |
| 06/01/05                    - 03/31/06              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                |    |   |   | 60,000 |   | $ | 48.00 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                |    |   |   | 60,000 |   |   | 60.70 |   |
|                                                |   |                 | Written                    put   |                                  |   | Undesignated                           |   |                |    |   |   | 60,000 |   |   | 38.00 |   |
| 07/01/05                    - 10/31/05              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                | 240,000 |   |   |   |   | $ | 7.00 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                | 240,000 |   |   |   |   |   | 7.76 |   |
|                                                |   |                 | Written                    put   |                                  |   | Undesignated                           |   |                | 240,000 |   |   |   |   |   | 5.75 |   |
| 11/01/05                    - 03/31/06              |   |                 | Purchased                    put |                                  |   | Cash                    flow           |   |                | 350,000 |   |   |   |   | $ | 8.00 |   |
|                                                |   |                 | Written                    call  |                                  |   | Cash                    flow           |   |                | 350,000 |   |   |   |   |   | 9.75 |   |
|                                                |   |                 | Written                    put   |                                  |   | Undesignated                           |   |                | 350,000 |   |   |   |   |   | 6.50 |   |

----

*Table              of Contents*

| **ITEM                    4.** | **CONTROLS                    AND PROCEDURES** |
|--------------------------------|------------------------------------------------|

**Material          Control Weakness Previously Disclosed**

**Evaluation          of Disclosure Controls and Procedures**

**Changes          in Internal Control over Financial Reporting**

----

*Table              of Contents*

**PART          II - OTHER INFORMATION**

| **ITEM                    1.** | **LEGAL                    PROCEEDINGS** |
|--------------------------------|------------------------------------------|

| **ITEM                      2.** | **UNREGISTERD                      SALES OF EQITY SECURITIES AND USE OF                      PROCEEDS** |
|----------------------------------|---------------------------------------------------------------------------------------------------------|

| **Period**                                            |   | **Total                    Number of****Shares                    Purchased** |   | **Average                    Price Paid****per                    Share** |   |
|-------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|
|                                                  |   |                                                                          |   |                                                                      |   |
| January                    1, 2005 - January 31, 2005 |   |                                                                          | 21,229 |                                                                      | $      | 8.93 |   |

| **ITEM                    3.** | **DEFAULTS                    UPON SENIOR SECURITIES** |
|--------------------------------|--------------------------------------------------------|

| **ITEM                    4.** | **SUBMISSON                    OF MATTERS TO A VOTE OF SECURITY                    HOLDERS** |
|--------------------------------|----------------------------------------------------------------------------------------------|

| **ITEM                    5.** | **OTHER                    INFORMATION** |
|--------------------------------|------------------------------------------|

| **ITEM                      6.** | **EXHIBITS** |
|----------------------------------|--------------|

| 31.1 | Corrected                    Certification of Chief Executive Officer of the Company pursuant                    to Rule                    13a-14(a) of the Securities Exchange Act of 1934, as corrected                    and                    re-filed with this report, but effective as of May 6, 2005, the                    date of                    the original filing of this report |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Corrected                    Certification of Chief Financial Officer of the Company pursuant                    to Rule                    13a-14(a) of the Securities Exchange Act of 1934, as corrected                    and                    re-filed with this report, but effective as of May 6, 2005, the                    date of                    the original filing of this report |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.3 | Certification                    of Chief Executive Officer of the Company pursuant to Rule 13a-14(a)                    of                    the Securities Exchange Act of 1934 |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.4 | Certification                    of Chief Financial Officer of the Company pursuant to Rule 13a-14(a)                    of                    the Securities Exchange Act of 1934 |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification                    of Chief Executive Officer of the Company pursuant to 18 U.S.C.§                    1350 |
|------|--------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification                    of Chief Financial Officer of the Company pursuant to 18 U.S.C.§                    1350 |
|------|--------------------------------------------------------------------------------------------------------------------------------|

----

*Table              of Contents*

**SIGNATURES**

|   | **BRIGHAM                      EXPLORATION COMPANY**   |
|--------|------------------------------------------------------------------|
|   |                                                             |   |   |
|   |                                                             |   |   |
|   | By:                                                              | /s/                      BEN M. BRIGHAM |   |
|   |                                                             | Ben                      M. Brigham  |
|   |                                                             | Chief                      Executive Officer, President   |
|   |                                                             | and                      Chairman of the Board  |
|   |                                                             |   |   |
|   |                                                             |   |   |
|   |                                                             |   |   |
|   | By:                                                              | /s/                      EUGENE B. SHEPHERD, JR. |   |
|   |                                                             | Eugene                      B. Shepherd, Jr.  |
|   |                                                             | Executive                      Vice President and   |
|   |                                                             | Chief                      Financial Officer  |

----