----

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**FORM        10**
**Q**

**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 of incorporation or organization) |   | (Primary                  Standard Industrial Classification Code Number) |   | (I.R.S.                  Employer 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 August 5, 2005 |   | 43,421,178      |

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**Brigham Exploration Company**

**Second        Quarter 2005 Form 10-Q Report**

**TABLE        OF CONTENTS**

|                     |                                                                                                                        | Page   |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------|--------|
|                     | **PART                  I - FINANCIAL INFORMATION**                                                                         |   |
|                     |                                                                                                                        |   |
| ITEM                  1. | FINANCIAL                  STATEMENTS                                                                                       |   |
|                     |                                                                                                                        |   |
|                     | Consolidated                  Balance Sheets - June 30, 2005 and December                  31, 2004                         | 1      |
|                     | Consolidated                  Statements of Operations - Three and six months                  ended June 30, 2005 and 2004 | 2      |
|                     | Consolidated                  Statement of Stockholders’ Equity - Six months                  ended June 30, 2005     | 3      |
|                     | Consolidated                  Statements of Cash Flows - Six months ended June                  30, 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     | 13     |
|                     |                                                                                                                        |   |
| ITEM                  3. | QUANTITATIVE                  AND QUALITATIVE DISCLOSURES ABOUT MARKET                  RISK                                | 30     |
|                     |                                                                                                                        |   |
| ITEM                  4. | CONTROLS                  AND PROCEDURES                                                                                    | 31     |
|                     |                                                                                                                        |   |
|                     |                                                                                                                        |   |
|                     | **PART                  II - OTHER INFORMATION**                                                                            |   |
|                     |                                                                                                                        |   |
| ITEM                  1. | LEGAL                  PROCEEDINGS                                                                                          | 32     |
|                     |                                                                                                                        |   |
| ITEM                  2. | UNREGISTERED                  SALES OF EQUITY SECURITIES AND USE OF                  PROCEEDS                               | 32     |
|                     |                                                                                                                        |   |
| ITEM                  3. | DEFALTS                  UPON SENIOR SECURITIES                                                                             | 32     |
|                     |                                                                                                                        |   |
| ITEM                  4. | SUBMISSION                  OF MATTERS TO A VOTE OF                  SECURITYHOLDERS                                        | 33     |
|                     |                                                                                                                        |   |
| ITEM                  5. | OTHER                  INFORMATION                                                                                          | 33     |
|                     |                                                                                                                        |   |
| ITEM                  6. | EXHIBITS                                                                                                                    | 34     |
|                     |                                                                                                                        |   |
| SIGNATURES               | 35                                                                                                                          |

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*Table              of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**CONSOLIDATED        BALANCE SHEETS**

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

**(Unaudited)**

|                                                                                                                                                                                                                                                                                                                                               |   | **June                      30, 2005** |    | ****December                    31,**2004** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|---------|---------------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                         |   |
| Current                  assets:                                                                                                                                                                                                                                                                                                                   |   |                                   |    |                                        |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                                                                                                    |   | $                                      | 6,425   |                                        | $      | 2,281 |   |
| Accounts                  receivable                                                                                                                                                                                                                                                                                                          |   |                                   | 13,532  |                                        |   | 17,573 |   |
| Deferred                  income taxes                                                                                                                                                                                                                                                                                                        |   |                                   | 121     |                                        |   | 239 |   |
| Other                  current assets                                                                                                                                                                                                                                                                                                         |   |                                   | 632     |                                        |   | 901 |   |
| Total                  current assets                                                                                                                                                                                                                                                                                                         |   |                                   | 20,710  |                                        |   | 20,994 |   |
|                                                                                                                                                                                                                                                                                                                                               |   |                                   |    |                                        |   |   |   |
| Oil                  and natural gas properties, net (full cost method)                                                                                                                                                                                                                                                                       |   |                                   | 307,345 |                                        |   | 261,979 |   |
| Other                  property and equipment, net                                                                                                                                                                                                                                                                                            |   |                                   | 1,048   |                                        |   | 1,209 |   |
| Deferred                  loan fees                                                                                                                                                                                                                                                                                                           |   |                                   | 2,365   |                                        |   | 1,745 |   |
| Other                  noncurrent assets                                                                                                                                                                                                                                                                                                      |   |                                   | 351     |                                        |   | 380 |   |
| Total                  assets                                                                                                                                                                                                                                                                                                                 |   | $                                      | 331,819 |                                        | $      | 286,307 |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                                                                          |
| Current                  liabilities:                                                                                                                                                                                                                                                                                                              |   |                                   |    |                                        |   |   |   |
| Accounts                  payable                                                                                                                                                                                                                                                                                                             |   | $                                      | 22,931  |                                        | $      | 22,465 |   |
| Royalties                  payable                                                                                                                                                                                                                                                                                                            |   |                                   | 5,002   |                                        |   | 6,072 |   |
| Accrued                  drilling costs                                                                                                                                                                                                                                                                                                       |   |                                   | 7,865   |                                        |   | 6,099 |   |
| Participant                  advances received                                                                                                                                                                                                                                                                                                |   |                                   | 687     |                                        |   | 3,633 |   |
| Other                  current liabilities                                                                                                                                                                                                                                                                                                    |   |                                   | 2,073   |                                        |   | 2,225 |   |
| Total                  current liabilities                                                                                                                                                                                                                                                                                                    |   |                                   | 38,558  |                                        |   | 40,494 |   |
|                                                                                                                                                                                                                                                                                                                                               |   |                                   |    |                                        |   |   |   |
| Senior                  credit facility                                                                                                                                                                                                                                                                                                       |   |                                   | 44,400  |                                        |   | 21,000 |   |
| Senior                  subordinated notes                                                                                                                                                                                                                                                                                                    |   |                                   | 30,000  |                                        |   | 20,000 |   |
| Series                  A Preferred Stock, mandatorily redeemable, $.01 par value, $20                  stated and                  redemption value, 2,250,000 shares authorized, 495,064 and 475,986                  shares                  issued and outstanding at June 30, 2005 and December 31, 2004,                  respectively  |   |                                   | 9,901   |                                        |   | 9,520 |   |
| Deferred                  income taxes                                                                                                                                                                                                                                                                                                        |   |                                   | 13,291  |                                        |   | 9,031 |   |
| Other                  noncurrent liabilities                                                                                                                                                                                                                                                                                                 |   |                                   | 3,200   |                                        |   | 2,986 |   |
|                                                                                                                                                                                                                                                                                                                                               |   |                                   |    |                                        |   |   |   |
| Commitments                  and contingencies (Note 5)                                                                                                                                                                                                                                                                                            |   |                                   |    |                                        |   |   |   |
|                                                                                                                                                                                                                                                                                                                                               |   |                                   |    |                                        |   |   |   |
| Stockholders'                  equity:                                                                                                                                                                                                                                                                                                             |   |                                   |    |                                        |   |   |   |
| Common                  stock, $.01 par value, 50                  million shares authorized, 43,421,178 and 43,231,499 shares issued                  and                  42,202,801 and 42,034,351 shares outstanding at June 30, 2005 and                  December 31, 2004, respectively                                           |   |                                   | 434     |                                        |   | 432 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                                                                                   |   |                                   | 176,537 |                                        |   | 175,270 |   |
| Treasury                  stock, at cost; 1,218,377 and 1,197,148 shares at June 30, 2005                  and                  December 31, 2004, respectively                                                                                                                                                                               |   |                                   | (4,897  | )                                           |   | (4,707 | ) |
| Unearned                  stock compensation                                                                                                                                                                                                                                                                                                  |   |                                   | (1,837  | )                                           |   | (1,570 | ) |
| Accumulated                  other comprehensive income (loss)                                                                                                                                                                                                                                                                                |   |                                   | 20      |                                        |   | (503 | ) |
| Retained                  earnings                                                                                                                                                                                                                                                                                                            |   |                                   | 22,212  |                                        |   | 14,354 |   |
| Total                  stockholders’ equity                                                                                                                                                                                                                                                                                             |   |                                   | 192,469 |                                        |   | 183,276 |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                                                                                                   |   | $                                      | 331,819 |                                        | $      | 286,307 |   |

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*Table            of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

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

**(Unaudited)**

|                                                                           |   | **Three                      Months Ended June                      30,** |    | **Six                      Months Ended June                      30,** |   |
|--------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|---------|-------------------------------------------------------------------------|--------|
|                                                                           |   | **2005**                                                                  |    | **2004**                                                                |   | **2005** |   | **2004** |   |
|                                                                           |   |                                                                      |    | **Restated**                                                            |   |   |   | **Restated** |   |
| Revenues:                                                                      |   |                                                                      |    |                                                                    |   |   |   |   |   |
| Oil                    and natural gas sales                              |   | $                                                                         | 18,434  |                                                                    | $      | 17,916 |   | $ | 35,137 |   | $ | 34,735 |   |
| Other                    revenue                                          |   |                                                                      | 56      |                                                                    |   | 41 |   |   | 99 |   |   | 42 |   |
|                                                                           |   |                                                                      | 18,490  |                                                                    |   | 17,957 |   |   | 35,236 |   |   | 34,777 |   |
| Costs                    and expenses:                                         |   |                                                                      |    |                                                                    |   |   |   |   |   |   |   |   |   |
| Lease                    operating                                        |   |                                                                      | 1,390   |                                                                    |   | 1,305 |   |   | 3,608 |   |   | 2,714 |   |
| Production                    taxes                                       |   |                                                                      | 366     |                                                                    |   | 896 |   |   | 1,168 |   |   | 1,759 |   |
| General                    and administrative                             |   |                                                                      | 1,304   |                                                                    |   | 1,199 |   |   | 2,402 |   |   | 2,419 |   |
| Depletion                    of oil and natural gas properties            |   |                                                                      | 7,206   |                                                                    |   | 5,524 |   |   | 13,659 |   |   | 10,648 |   |
| Depreciation                    and amortization                          |   |                                                                      | 178     |                                                                    |   | 184 |   |   | 360 |   |   | 365 |   |
| Accretion                    of discount on asset retirement obligations  |   |                                                                      | 43      |                                                                    |   | 40 |   |   | 82 |   |   | 77 |   |
|                                                                           |   |                                                                      | 10,487  |                                                                    |   | 9,148 |   |   | 21,279 |   |   | 17,982 |   |
| Operating                    income                                       |   |                                                                      | 8,003   |                                                                    |   | 8,809 |   |   | 13,957 |   |   | 16,795 |   |
|                                                                           |   |                                                                      |    |                                                                    |   |   |   |   |   |   |   |   |   |
| Other                    income (expense):                                     |   |                                                                      |    |                                                                    |   |   |   |   |   |   |   |   |   |
| Interest                    income                                        |   |                                                                      | 52      |                                                                    |   | 15 |   |   | 91 |   |   | 29 |   |
| Interest                    expense, net                                  |   |                                                                      | (766    | )                                                                       |   | (854 | ) |   | (1,507 | ) |   | (1,636 | ) |
| Other                    income (expense)                                 |   |                                                                      | 177     |                                                                    |   | (118 | ) |   | (354 | ) |   | 9 |   |
|                                                                           |   |                                                                      | (537    | )                                                                       |   | (957 | ) |   | (1,770 | ) |   | (1,598 | ) |
| Income                    before income taxes                             |   |                                                                      | 7,466   |                                                                    |   | 7,852 |   |   | 12,187 |   |   | 15,197 |   |
| Income                    tax expense:                                         |   |                                                                      |    |                                                                    |   |   |   |   |   |   |   |   |   |
| Current                                                                   |   |                                                                      | — |                                                                    |   | — |   |   | — |   |   | — |   |
| Deferred                                                                  |   |                                                                      | (2,656  | )                                                                       |   | (2,714 | ) |   | (4,329 | ) |   | (5,134 | ) |
|                                                                           |   |                                                                      | (2,656  | )                                                                       |   | (2,714 | ) |   | (4,329 | ) |   | (5,134 | ) |
| Net                    income                                             |   | $                                                                         | 4,810   |                                                                    | $      | 5,138 |   | $ | 7,858 |   | $ | 10,063 |   |
|                                                                           |   |                                                                      |    |                                                                    |   |   |   |   |   |   |   |   |   |
| Net                    income per share available to common stockholders:      |   |                                                                      |    |                                                                    |   |   |   |   |   |   |   |   |   |
| Basic                                                                     |   | $                                                                         | 0.11    |                                                                    | $      | 0.13 |   | $ | 0.19 |   | $ | 0.26 |   |
| Diluted                                                                   |   | $                                                                         | 0.11    |                                                                    | $      | 0.13 |   | $ | 0.18 |   | $ | 0.25 |   |
|                                                                           |   |                                                                      |    |                                                                    |   |   |   |   |   |   |   |   |   |
| Weighted                    average shares outstanding:                        |   |                                                                      |    |                                                                    |   |   |   |   |   |   |   |   |   |
| Basic                                                                     |   |                                                                      | 42,189  |                                                                    |   | 39,287 |   |   | 42,144 |   |   | 39,261 |   |
| Diluted                                                                   |   |                                                                      | 43,206  |                                                                    |   | 40,391 |   |   | 43,162 |   |   | 40,354 |   |

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*Table            of Contents*

**BRIGHAM        EPLORATION COMPANY**

**CONSOLIDATED        STATEMENT OF STOCKHOLDERS' EQUITY**

**(In        thousands)**

**(Unaudited)**

|                                                              |   | **Common                    Stock** |    |                    **Additional****Paid                    In** |   |                    **Treasury** |   |                    **Unearned****Stock** |    |                    **Accumulated****Other****Comprehensive** |   |  **Retained **             |   |                    **Total****Stockholders'** |    |
|-------------------------------------------------------------------|--------|-------------------------------------|---------|----------------------------------------------------------------------|--------|--------------------------------------|--------|-----------------------------------------------|---------|-------------------------------------------------------------------|--------|--------------------------------------|--------|----------------------------------------------------|---------|
|                                                              |   | **Shares**                          |    | **Amounts**                                                          |   | **Capital**                          |   | **Stock**                                     |    | **Compensation**                                                  |   | **Income                    (Loss)** |   | **Earnings**                                       |    | **Equity** |   |
| Balance,                    December 31, 2004                     |   |                                | 43,231  |                                                                 | $      | 432                                  |   | $                                             | 175,270 |                                                              | $      | (4,707                               | )      | $                                                  | (1,570  | ) | $ | (503 | ) | $ | 14,354 |   | $ | 183,276 |   |
| Comprehensive                    income:                          |   |                                |    |                                                                 |   |                                 |   |                                          |    |                                                              |   |                                 |   |                                               |    |   |   |   |   |   |   |   |   |   |   |
| Net                    income                                     |   |                                | — |                                                                 |   | —                              |   |                                          | — |                                                              |   | —                              |   |                                               | — |   |   | — |   |   | 7,858 |   |   | 7,858 |   |
| Unrealized                    gain (losses) on cash flow hedges   |   |                                | — |                                                                 |   | —                              |   |                                          | — |                                                              |   | —                              |   |                                               | — |   |   | 391 |   |   | — |   |   | 391 |   |
| Tax                    provisions related to cash flow hedges     |   |                                | — |                                                                 |   | —                              |   |                                          | — |                                                              |   | —                              |   |                                               | — |   |   | (282 | ) |   | — |   |   | (282 | ) |
| Net                    losses realized and included in net income |   |                                | — |                                                                 |   | —                              |   |                                          | — |                                                              |   | —                              |   |                                               | — |   |   | 414 |   |   | — |   |   | 414 |   |
| Comprehensive                    income                           |   |                                |    |                                                                 |   |                                 |   |                                          |    |                                                              |   |                                 |   |                                               |    |   |   |   |   |   |   |   |   | 8,381 |   |
| Exercises                    of employee stock options       |   |                                | 125     |                                                                 |   | 1                                    |   |                                          | 433     |                                                              |   | —                              |   |                                               | — |   |   | — |   |   | — |   |   | 434 |   |
| Vesting                    of restricted stock               |   |                                | 65      |                                                                 |   | 1                                    |   |                                          | (1      | )                                                                 |   | —                              |   |                                               | — |   |   | — |   |   | — |   |   | — |   |
| Issuance                    of restricted stock                   |   |                                | — |                                                                 |   | —                              |   |                                          | 602     |                                                              |   | —                              |   |                                               | (602    | ) |   | — |   |   | — |   |   | — |   |
| Tax                    benefit from the exercise of stock options |   |                                | — |                                                                 |   | —                              |   |                                          | 233     |                                                              |   | —                              |   |                                               | — |   |   | — |   |   | — |   |   | 233 |   |
| Repurchases                    of common stock                    |   |                                | — |                                                                 |   | —                              |   |                                          | — |                                                              |   | (190                                 | )      |                                               | — |   |   | — |   |   | — |   |   | (190 | ) |
| Amortization                    of unearned stock compensation    |   |                                | — |                                                                 |   | —                              |   |                                          | — |                                                              |   | —                              |   |                                               | 335     |   |   | — |   |   | — |   |   | 335 |   |
| Balance,                    June 30, 2005                         |   |                                | 43,421  |                                                                 | $      | 434                                  |   | $                                             | 176,537 |                                                              | $      | (4,897                               | )      | $                                                  | (1,837  | ) | $ | 20 |   | $ | 22,212 |   | $ | 192,469 |   |

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*Table              of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(In        thousands)**

**(Unaudited)**

|                                                                                                                      |   |                                                                           |    |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|---------|
|                                                                                                                      |   | **Six                        Months Ended****June                        30,** |    |
|                                                                                                                      |   | **2005**                                                                       |    | **2004** |   |
|                                                                                                                      |   |                                                                           |    | **Restated                    (1)** |   |
| Cash                    flows from operating activities:                                                                  |   |                                                                           |    |   |   |
| Net                    income                                                                                        |   | $                                                                              | 7,858   |   | $ | 10,063 |   |
| Adjustments                    to reconcile net income to cash provided by operating                    activities:       |   |                                                                           |    |   |   |   |   |
| Depletion                    of oil and natural gas properties                                                       |   |                                                                           | 13,659  |   |   | 10,648 |   |
| Depreciation                    and amortization                                                                     |   |                                                                           | 360     |   |   | 365 |   |
| Interest                    paid through issuance of additional mandatorily redeemable preferred                    stock |   |                                                                           | 381     |   |   | 354 |   |
| Amortization                    of deferred loan fees and debt issuance costs                                        |   |                                                                           | 253     |   |   | 383 |   |
| Market                    value adjustment for derivative instruments                                                |   |                                                                           | 466     |   |   | 60 |   |
| Accretion                    of discount on asset retirement obligations                                        |   |                                                                           | 82      |   |   | 77 |   |
| Deferred                    income taxes                                                                             |   |                                                                           | 4,329   |   |   | 5,134 |   |
| Other                    noncash items                                                                               |   |                                                                           | 59      |   |   | — |   |
| Changes                    in operating assets and liabilities:                                                           |   |                                                                           |    |   |   |   |   |
| Accounts                    receivable                                                                               |   |                                                                           | 4,030   |   |   | (3,829 | ) |
| Other                    current assets                                                                              |   |                                                                           | 241     |   |   | 2,911 |   |
| Accounts                    payable                                                                                  |   |                                                                           | 466     |   |   | (566 | ) |
| Royalties                    payable                                                                                 |   |                                                                           | (1,070  | ) |   | 2,225 |   |
| Participant                    advances received                                                                     |   |                                                                           | (2,946  | ) |   | (481 | ) |
| Other                    current liabilities                                                                         |   |                                                                           | 47      |   |   | (1,902 | ) |
| Other                    noncurrent assets and liabilities                                                           |   |                                                                           | (14     | ) |   | (92 | ) |
| Net                    cash provided by operating activities                                                         |   |                                                                           | 28,201  |   |   | 25,350 |   |
|                                                                                                                      |   |                                                                           |    |   |   |   |   |
| Cash                    flows from investing activities:                                                                  |   |                                                                           |    |   |   |   |   |
| Additions                    to oil and natural gas properties                                                       |   |                                                                           | (56,938 | ) |   | (38,072 | ) |
| Additions                    to other property and equipment                                                         |   |                                                                           | (86     | ) |   | (172 | ) |
| Decrease                    (Increase) in drilling advances paid                                                     |   |                                                                           | 211     |   |   | 137 |   |
| Net                    cash used by investing activities                                                             |   |                                                                           | (56,813 | ) |   | (38,107 | ) |
|                                                                                                                      |   |                                                                           |    |   |   |   |   |
| Cash                    flows from financing activities:                                                                  |   |                                                                           |    |   |   |   |   |
| Increase                    in senior credit facility                                                                |   |                                                                           | 31,600  |   |   | 19,700 |   |
| Repayment                    of senior credit facility                                                               |   |                                                                           | (8,200  | ) |   | (2,000 | ) |
| Increase                    in senior subordinated notes                                                             |   |                                                                           | 10,000  |   |   | — |   |
| Deferred                    loan fees paid and equity costs                                                          |   |                                                                           | (888    | ) |   | (53 | ) |
| Proceeds                    from exercise of employee stock options                                                  |   |                                                                           | 434     |   |   | 598 |   |
| Repurchases                    of common stock                                                                       |   |                                                                           | (190    | ) |   | (156 | ) |
| Net                    cash provided by financing activities                                                         |   |                                                                           | 32,756  |   |   | 18,089 |   |
| Net                    increase (decrease) in cash and cash equivalents                                              |   |                                                                           | 4,144   |   |   | 5,332 |   |
| Cash                    and cash equivalents, beginning of year                                                      |   |                                                                           | 2,281   |   |   | 5,779 |   |
| Cash                    and cash equivalents, end of period                                                          |   | $                                                                              | 6,425   |   | $ | 11,111 |   |

|  | (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. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*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***

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*Table            of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

|                                                                                                                                                                        |   | **Three                    Months Ended****June                    30,** |   | **Six                    Months Ended****June                    30,** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                                                                                                                                                        |   | **2005**                                                                 |   | **2004**                                                               |   | **2005** |   | **2004** |   |
|                                                                                                                                                                        |   | (In                    thousands, except per share amounts)              |   |
|                                                                                                                                                                        |   |                                                                     |   |
| Net                    income, as reported (as restated for 2004)                                                                                                      |   | $                                                                        | 4,810  |                                                                   | $      | 5,138 |   | $ | 7,858 |   | $ | 10,063 |   |
| Add                    back: Stock compensation expense previously included in net                    income                                                           |   |                                                                     | 111    |                                                                   |   | 116 |   |   | 222 |   |   | 237 |   |
| Effect                    of total employee stock-based compensation expense, determined                    under fair                    value method for all awards  |   |                                                                     | (321   | )                                                                      |   | (647 | ) |   | (682 | ) |   | (991 | ) |
| Pro                    forma                                                                                                                                           |   | $                                                                        | 4,600  |                                                                   | $      | 4,607 |   | $ | 7,398 |   | $ | 9,309 |   |
|  Net                    income per share:                                                                                                                              |   |                                                                     |   |                                                                   |   |   |   |   |   |   |   |   |   |
| Basic,                    as reported                                                                                                                                  |   | $                                                                        | 0.11   |                                                                   | $      | 0.13 |   | $ | 0.19 |   | $ | 0.26 |   |
| Basic,                    pro forma                                                                                                                                    |   |                                                                     | 0.11   |                                                                   |   | 0.12 |   |   | 0.18 |   |   | 0.24 |   |
|                                                                                                                                                                        |   |                                                                     |   |                                                                   |   |   |   |   |   |   |   |   |   |
| Diluted,                    as reported                                                                                                                                |   | $                                                                        | 0.11   |                                                                   | $      | 0.13 |   | $ | 0.18 |   | $ | 0.25 |   |
| Diluted,                    pro forma                                                                                                                                  |   |                                                                     | 0.11   |                                                                   |   | 0.11 |   |   | 0.17 |   |   | 0.23 |   |

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

|                                                                             |   | **Three                    months ended****June 30, 2004** |   | **Six                    months ended****June                    30, 2004** |   |
|----------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                                             |   | **As****Reported**                                         |   | **Restated**                                                                |   | **As****Reported** |   | **Restated** |   |
|                                                                             |   |                                                       |   |                                                                        |   |   |   |   |   |
| Consolidated                    Statements of Operations:                        |   |                                                       |   |                                                                        |   |   |   |   |   |
| Depletion                    of oil and natural gas properties                   |   | $                                                          | 5,623  |                                                                        | $      | 5,524 |   | $ | 10,503 |   | $ | 10,648 |   |
| Deferred                    income tax benefit (expense)                         |   |                                                       | (2,683 | )                                                                           |   | (2,714 | ) |   | (5,183 | ) |   | (5,134 | ) |
| Net                    income                                                    |   |                                                       | 5,070  |                                                                        |   | 5,138 |   |   | 10,159 |   |   | 10,063 |   |
| Net                    income (loss) per share available to common stockholders: |   |                                                       |   |                                                                        |   |   |   |   |   |   |   |   |   |
| Basic                                                                            |   | $                                                          | 0.13   |                                                                        | $      | 0.13 |   | $ | 0.26 |   | $ | 0.26 |   |
| Diluted                                                                          |   | $                                                          | 0.13   |                                                                        | $      | 0.13 |   | $ | 0.25 |   | $ | 0.25 |   |

----

*Table              of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

| **4.** | **Senior                  Credit Facility and Senior Subordinated                  Notes** |
|--------|--------------------------------------------------------------------------------------------|

***Senior        Credit Facility***

***Senior        Subordinated Notes***

| **5.** | **Commitments                  and Contingencies** |
|--------|----------------------------------------------------|

----

*Table            of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

----

*Table            of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

| **6.** | **Earnings                  Per Common Share** |
|--------|------------------------------------------------|

|                                                                                                                |   | **Three                    Months Ended****June                    30,** |   | **Six                    Months Ended****June                    30,** |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                                                                                                |   | **2005**                                                                 |   | **2004**                                                               |   | **2005** |   | **2004** |   |
|                                                                                                                |   |                                                                     |   |                                                                   |   |   |   |   |   |
| Weighted                    average common shares outstanding - basic                                     |   |                                                                     | 42,189 |                                                                   |   | 39,287 |   |   | 42,144 |   |   | 39,261 |   |
| Plus:                    Potential common shares                                                                    |   |                                                                     |   |                                                                   |   |   |   |   |   |   |   |   |   |
| Stock                    options and restricted stock                                                               |   |                                                                     | 1,017  |                                                                   |   | 1,104 |   |   | 1,018 |   |   | 1,093 |   |
| Weighted                    average common shares outstanding - diluted                                        |   |                                                                     | 43,206 |                                                                   |   | 40,391 |   |   | 43,162 |   |   | 40,354 |   |
|                                                                                                                |   |                                                                     |   |                                                                   |   |   |   |   |   |   |   |   |   |
| Stock                    options excluded from diluted EPS due to the anti-dilutive                    effect  |   |                                                                     | 700    |                                                                   |   | 1 |   |   | 700 |   |   | 21 |   |

| **7.** | **Derivative                  Instruments and Hedging                  Activities** |
|--------|-------------------------------------------------------------------------------------|

|                                                                             |   | **Three                    Months Ended June 30,** |   | **Six                    Months Ended June 30,** |   |
|----------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                             |   | **2005**                                           |   | **2004**                                         |   | **2005** |   | **2004** |   |
| ***Natural                    Gas***                                             |   |                                               |   |                                             |   |   |   |   |   |
| Average                    price per Mcf as reported (including hedging results) |   | $                                                  | 6.62   |                                             | $      | 5.90 |   | $ | 6.21 |   | $ | 5.80 |   |
| Average                    price per Mcf realized (excluding hedging results)    |   | $                                                  | 6.73   |                                             | $      | 6.19 |   | $ | 6.27 |   | $ | 6.00 |   |
| Decrease                    in revenue (in thousands)                            |   | $                                                  | (231   | )                                                | $      | (644 | ) | $ | (241 | ) | $ | (860 | ) |
| ***Oil***                                                                        |   |                                               |   |                                             |   |   |   |   |   |   |   |   |   |
| Average                    price per Bbl as reported (including hedging results) |   | $                                                  | 47.83  |                                             | $      | 33.05 |   | $ | 45.64 |   | $ | 31.88 |   |
| Average                    price per Bbl realized (excluding hedging results)    |   | $                                                  | 51.56  |                                             | $      | 37.81 |   | $ | 49.84 |   | $ | 35.79 |   |
| Decrease                    in revenue (in thousands)                            |   | $                                                  | (385   | )                                                | $      | (670 | ) | $ | (926 | ) | $ | (1,175 | ) |

|                                                                            |   | **Three                    Months Ended June 30,** |   | **Six                    Months Ended June 30,** |   |
|---------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                            |   | **2005**                                           |   | **2004**                                         |   | **2005** |   | **2004** |   |
| Increase                    (decrease) in earnings due to ineffectiveness  |   | $                                                  | 203    |                                             | $      | (187 | ) | $ | (413 | ) | $ | (60 | ) |

----

*Table              of Contents*

**BRIGHAM        EXPLORATION COMPANY**

**NOTES        TO THE CONSOLIDATED FINANCIAL STATEMENTS**

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

***Cash-flow          hedges***

|                                                            |   | **June                    30,****2005** |   | **December                    31,****2004** |   |
|-----------------------------------------------------------------|--------|-----------------------------------------|--------|---------------------------------------------|--------|
| Fair                    value of undesignated derivatives  |   | $                                       | (85    | )                                           | $      | — |   |

|                                                                                                                           |   | **Three                    Months Ended June 30,** |   | **Six                    Months Ended June 30,** |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                                                                           |   | **2005**                                           |   | **2004**                                         |   | **2005** |   | **2004** |   |
| Increase                    (decrease) in earnings due to changes in fair value of undesignated                    derivatives |   | $                                                  | (63    | )                                                | $      | — |   | $ | (53 | ) | $ | — |   |

|                                                |   |                             |   |                                  |   | **Notional                    Amount** |   |                 |
|-----------------------------------------------------|--------|----------------------------------|--------|---------------------------------------|--------|----------------------------------------|--------|----------------------|
| **Settlement                    Period**            |   | **Derivative****Instrument**     |   | **Hedge                    Strategy** |   | **Gas****(MMBTU)**                     |   | **Oil****(Barrels)** |   | **Nymex                    Reference****Price** |
| ***Costless                    Collars***           |   |                             |   |                                  |   |                                   |   |                 |   |   |
| 07/01/05                    - 10/31/05              |   | Purchased                    put |   | Cash                    flow          |   | 240,000                                |   |                 |   | $5.45 |
|                                                |   | Written                    call  |   | Cash                    flow          |   | 240,000                                |   |                 |   | 8.00 |
| ***Three                    Way Costless Collars*** |   |                             |   |                                  |   |                                   |   |                 |   |   |
| 07/01/05                    - 03/31/06              |   | Purchased                    put |   | Cash                    flow          |   |                                   |   | 54,000               |   | $48.00 |
|                                                |   | Written                    call  |   | Cash                    flow          |   |                                   |   | 54,000               |   | 60.70 |
|                                                |   | Written                    put   |   | Undesignated                          |   |                                   |   | 54,000               |   | 38.00 |
| 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 |
| 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          |   | 250,000                                |   |                 |   | $6.75 |
|                                                |   | Written                    call  |   | Cash                    flow          |   | 250,000                                |   |                 |   | 8.80 |
|                                                |   | Written                    put   |   | Undesignated                          |   | 250,000                                |   |                 |   | 5.50 |
| 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*

**BRIGHAM          EXPLORATION COMPANY**

**NOTES          TO THE CONSOLIDATED FINANCIAL STATEMENTS**

|                                                |   |                             |   |                                  |   | **Notional                    Amount** |   |                 |
|-----------------------------------------------------|--------|----------------------------------|--------|---------------------------------------|--------|----------------------------------------|--------|----------------------|
| **Settlement                    Period**            |   | **Derivative****Instrument**     |   | **Hedge                    Strategy** |   | **Gas****(MMBTU)**                     |   | **Oil****(Barrels)** |   | **Nymex                    Reference****Price** |
| ***Three                    Way Costless Collars*** |   |                             |   |                                  |   |                                   |   |                 |   |   |
| 04/01/06                    - 10/31/06              |   | Purchased                    put |   | Cash                    flow          |   | 420,000                                |   |                 |   | $7.50 |
|                                                |   | Written                    call  |   | Cash                    flow          |   | 420,000                                |   |                 |   | 9.15 |
|                                                |   | Written                    put   |   | Undesignated                          |   | 420,000                                |   |                 |   | 6.25 |
| ***Costless                    Collars***           |   |                             |   |                                  |   |                                   |   |                 |   |   |
| 04/01/06                    - 6/30/06               |   | Purchased                    put |   | Cash                    flow          |   |                                   |   | 16,500               |   | $54.80 |
|                                                |   | Written                    call  |   | Cash                    flow          |   |                                   |   | 16,500               |   | 75.00 |

***Interest          rate swap***

***Fair          values***

|                                            |   | **June                    30,****2005** |    | **December                    31,****2004** |   |
|-------------------------------------------------|--------|-----------------------------------------|---------|---------------------------------------------|--------|
|                                            |   | (In                    thousands)       |    |
|                                            |   |                                    |    |                                        |   |
| Other                    current liabilities    |   | $                                       | (586    | )                                           | $      | (870 | ) |
| Other                    noncurrent liabilities |   |                                    | — |                                        |   | (1 | ) |
| Other                    current assets         |   |                                    | — |                                        |   | 142 |   |
| Other                    noncurrent assets      |   |                                    | 185     |                                        |   | 3 |   |
|                                            |   | $                                       | (401    | )                                           | $      | (726 | ) |

----

*Table                of Contents*

**BRIGHAM            EXPLORATION COMPANY**

**NOTES            TO THE CONSOLIDATED FINANCIAL STATEMENTS**

| **8.** | **Asset                    Retirement Obligations** |
|--------|-----------------------------------------------------|

|                                                                       |   | **Six                    Months Ended****June                    30,** |   |
|----------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                                                       |   | **2005**                                                               |   | **2004** |   |
|                                                                       |   |                                                                   |   |   |   |
| Beginning                    asset retirement obligations                  |   | $                                                                      | 2,896  |   | $ | 2,320 |   |
| Liabilities                    incurred for new wells placed on production |   |                                                                   | 160    |   |   | 336 |   |
| Liabilities                    settled                                     |   |                                                                   | (6     | ) |   | (68 | ) |
| Accretion                    of discount on asset retirement obligations   |   |                                                                   | 82     |   |   | 77 |   |
|                                                                       |   | $                                                                      | 3,132  |   | $ | 2,665 |   |

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

----

*Table              of Contents*

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

**Overview          of Second Quarter and First Six Months of 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                    and the associated infrastructure; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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****06/30/05** |   | **Amount****Remaining****(1)** |   |
|-----------------------------------------------------|--------|---------------------------------------|---------|---------------------------------------------------------|--------|--------------------------------|--------|
|                                                |   | **(In                    thousands)** |    |
| Drilling                                            |   | $                                     | 70,308  |                                                    | $      | 45,238                         |   | $ | 25,070 |   |
| Net                    land and seismic             |   |                                  | 13,065  |                                                    |   | 10,246                         |   |   | 2,819 |   |
| Capitalized                    interest and G&A |   |                                  | 6,184   |                                                    |   | 3,381                          |   |   | 2,803 |   |
| Asset                    retirement obligation      |   |                                  | — |                                                    |   | 160                            |   |   | — |   |
| Other                    assets                     |   |                                  | 615     |                                                    |   | 86                             |   |   | 529 |   |
| Total                                               |   | $                                     | 90,172  |                                                    | $      | 59,111                         |   | $ | 31,221 |   |

| (1) | Calculated                    as the amount budgeted for 2005 less amount spent through June                    30, 2005. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

----

*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***

| **Percent                    of****Borrowing                    Base****Utilized** |   | **Eurodollar                    Rate****Advances** |   | **Base                    Rate****Advances                    (1)** |
|------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|---------------------------------------------------------------------|
| <                    50%                                                        |   | 1.250%                                             |   | 0.000%                                                              |
| ≥                    50% and < 75%                                        |   | 1.500%                                             |   | 0.000%                                                              |
| ≥                    75% and < 90%                                        |   | 1.750%                                             |   | 0.250%                                                              |
| ≥                    90%                                                     |   | 2.000%                                             |   | 0.500%                                                              |

----

*Table                of Contents*

| **Percent                    of****Borrowing                    Base****Utilized** |   | **As                    Amended** |
|------------------------------------------------------------------------------------|--------|-----------------------------------|
| <                    50%                                                        |   | 0.250%                            |
| ≥                    50% and < 75%                                        |   | 0.250%                            |
| ≥                    75% and < 90%                                        |   | 0.375%                            |
| ≥                    90%                                                     |   | 0.375%                            |

***Senior          Subordinated Notes***

|                                                                                |   | **Senior                    Subordinated Debt Outstanding** |
|-------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|
| **Percent                    of Senior Credit Facility Borrowing Base****Utilized** |   |  **≤                    $30 Million**            |   | **>                    $30 Million and****≤                    $35 Million** |   |  **>                    $35 Million** |
| <                    75%                                                         |   | 3.90%                                                       |   | 3.90% |   | 3.90% |
| ≥                    75% and < 90%                                         |   | 3.90%                                                       |   | 4.25% |   | 4.50% |
| ≥                    90%                                                      |   | 3.90%                                                       |   | 4.25% |   | 4.50% |

----

*Table              of Contents*

***Mandatorily          Redeemable Preferred Stock***

**Capital          Resources**

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

***Senior          Credit Facility***

***Senior          Subordinated Notes***

----

*Table              of Contents*

***Access          to Capital Markets***

**Results          of Operations**

*Comparison          of the three and six month periods ended June 30, 2005 and          2004.*

**Revenues**

*Production          volumes*

|                                                  |   | **Three                    months ended June 30,** |   | **Six                    months ended June 30,** |   |
|-------------------------------------------------------|--------|----------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                  |   | **2005**                                           |   | **%                    Change**                  |   | **2004** |   | **2005** |   | **%                    Change** |   | **2004** |   |
|                                                  |   |                                               |   |                                             |   |   |   |   |   |   |   |   |   |
| Oil                    (MBbls)                        |   |                                               | 103    |                                             |   | (27%) |   |   | 141 |   |   | 221 |   |   | (26%) |   |   | 300 |   |
| Natural                    gas (MMcf)                 |   |                                               | 2,041  |                                             |   | (9%) |   |   | 2,246 |   |   | 4,035 |   |   | (7%) |   |   | 4,339 |   |
| Total                    (MMcfe)(1)                   |   |                                               | 2,659  |                                             |   | (14%) |   |   | 3,092 |   |   | 5,359 |   |   | (13%) |   |   | 6,142 |   |
| Average                    daily production (MMcfe/d) |   |                                               | 29.5   |                                             |   |   |   |   | 34.4 |   |   | 29.8 |   |   |   |   |   | 34.1 |   |

| (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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table                of Contents*

**Hedging          Results**

|                                                             |   | **Three                    months ended June 30,** |    | **Six                    months ended June 30,** |   |
|------------------------------------------------------------------|--------|----------------------------------------------------|---------|--------------------------------------------------|--------|
|                                                             |   | **2005**                                           |    | **%                    Change**                  |   | **2004** |   | **2005** |   | **%                    Change** |   | **2004** |   |
|                                                             |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| ***Oil                    swaps***                               |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Volumes                    (Bbls)                                |   |                                               | — |                                             |   | (100%) |   |   | 20,475 |   |   | — |   |   | (100%) |   |   | 50,050 |   |
| Average                    swap price ($ per Bbl)                |   | $                                                  | — |                                             |   | (100%) |   | $ | 24.52 |   | $ | — |   |   | (100%) |   | $ | 25.01 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                  | — |                                             |   | (100%) |   | $ | (283 | ) | $ | — |   |   | (100%) |   | $ | (573 | ) |
| ***Oil                    collars***                             |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volumes                    (Bbls)                                |   |                                               | 24,655  |                                             |   | (51%) |   |   | 50,050 |   |   | 52,105 |   |   | (45%) |   |   | 95,550 |   |
| Average                    floor price ($ per Bbl)               |   | $                                                  | 31.96   |                                             |   | 33% |   | $ | 24.09 |   | $ | 28.59 |   |   | 21% |   | $ | 23.57 |   |
| Average                    ceiling price ($ per Bbl)             |   | $                                                  | 39.37   |                                             |   | 29% |   | $ | 30.60 |   | $ | 34.53 |   |   | 13% |   | $ | 30.52 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                  | (385    | )                                                |   | (1%) |   | $ | (387 | ) | $ | (926 | ) |   | 54% |   | $ | (602 | ) |
| ***Total                    oil***                          |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volumes                    (Bbls)                                |   |                                               | 24,655  |                                             |   | (65%) |   |   | 70,525 |   |   | 52,105 |   |   | (64%) |   |   | 145,600 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                  | (385    | )                                                |   | (43%) |   | $ | (670 | ) | $ | (926 | ) |   | (21%) |   | $ | (1,175 | ) |
| ***Natural                    gas swaps***                       |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volumes                    (MMbtu)                               |   |                                               | — |                                             |   | (100%) |   |   | 227,500 |   |   | — |   |   | (100%) |   |   | 523,250 |   |
| Average                    swap price ($ per MMbtu)              |   | $                                                  | — |                                             |   | (100%) |   | $ | 4.25 |   | $ | — |   |   | (100%) |   | $ | 4.65 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                  | — |                                             |   | (100%) |   | $ | (391 | ) | $ | — |   |   | (100%) |   | $ | (607 | ) |
| ***Natural                    gas collars***                     |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volumes                    (MMbtu)                               |   |                                               | 635,000 |                                             |   | 25% |   |   | 509,600 |   |   | 1,362,500 |   |   | 29% |   |   | 1,055,600 |   |
| Average                    floor price ($ per MMbtu)             |   | $                                                  | 4.93    |                                             |   | 20% |   | $ | 4.11 |   | $ | 5.06 |   |   | 23% |   | $ | 4.12 |   |
| Average                    ceiling price ($ per MMbtu)           |   | $                                                  | 7.08    |                                             |   | 25% |   | $ | 5.67 |   | $ | 7.17 |   |   | 1% |   | $ | 7.10 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                  | (231    | )                                                |   | (9%) |   | $ | (253 | ) | $ | (241 | ) |   | (5%) |   | $ | (253 | ) |
| ***Total                    natural gas***                       |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volumes                    (MMbtu)                               |   |                                               | 635,000 |                                             |   | (14%) |   |   | 737,100 |   |   | 1,362,500 |   |   | (14%) |   |   | 1,578,850 |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                  | (231    | )                                                |   | (64%) |   | $ | (644 | ) | $ | (241 | ) |   | (72%) |   | $ | (860 | ) |

----

*Table              of Contents*

*Commodity          prices and revenues*

|                                                                  |   | **Three                    months ended June 30,**                  |   | **Six                    months ended June 30,** |   |
|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                  |   | **2005**                                                            |   | **%                    Change**                  |   | **2004** |   | **2005** |   | **%                    Change** |   | **2004** |   |
|                                                                  |   |                                                                |   |
|                                                                  |   | **(In                    thousands, except per unit measurements)** |   |
| **Revenue                    from the sale of oil and natural gas:**  |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |
| Oil                    sales                                          |   | $                                                                   | 5,313  |                                             |   | (0%) |   | $ | 5,327 |   | $ | 11,002 |   |   | 2% |   | $ | 10,754 |   |
| Gain                    (loss) due to hedging                         |   |                                                                | (385   | )                                                |   | (43%) |   |   | (670 | ) |   | (926 | ) |   | (21%) |   |   | (1,175 | ) |
| Total                    revenue from the sale of oil                 |   | $                                                                   | 4,928  |                                             |   | 6% |   | $ | 4,657 |   | $ | 10,076 |   |   | 5% |   | $ | 9,579 |   |
|                                                                  |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural                    gas sales                                  |   | $                                                                   | 13,737 |                                             |   | (1%) |   | $ | 13,903 |   | $ | 25,302 |   |   | (3%) |   | $ | 26,016 |   |
| Gain                    (loss) due to hedging                         |   |                                                                | (231   | )                                                |   | (64%) |   |   | (644 | ) |   | (241 | ) |   | (72%) |   |   | (860 | ) |
| Total                    revenue from the sale of natural gas         |   | $                                                                   | 13,506 |                                             |   | 2% |   | $ | 13,259 |   | $ | 25,061 |   |   | (0%) |   | $ | 25,156 |   |
|                                                                  |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil                    and natural gas sales                          |   | $                                                                   | 19,050 |                                             |   | (1%) |   | $ | 19,230 |   | $ | 36,304 |   |   | (1%) |   | $ | 36,770 |   |
| Gain                    (loss) due to hedging                         |   |                                                                | (616   | )                                                |   | (53%) |   |   | (1,314 | ) |   | (1,167 | ) |   | (43%) |   |   | (2,035 | ) |
| Total                    revenue from the sale of oil and natural gas |   | $                                                                   | 18,434 |                                             |   | 3% |   | $ | 17,916 |   | $ | 35,137 |   |   | 1% |   | $ | 34,735 |   |
|                                                                  |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Average                    prices:**                                |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil                    sales price (per Bbl)                          |   | $                                                                   | 51.56  |                                             |   | 36% |   | $ | 37.81 |   | $ | 49.84 |   |   | 39% |   | $ | 35.79 |   |
| Gain                    (loss) due to hedging (per Bbl)               |   |                                                                | (3.73  | )                                                |   | (22%) |   |   | (4.76 | ) |   | (4.19 | ) |   | 7% |   |   | (3.91 | ) |
| Realized                    oil price (per Bbl)                       |   | $                                                                   | 47.83  |                                             |   | 45% |   | $ | 33.05 |   | $ | 45.65 |   |   | 43% |   | $ | 31.88 |   |
|                                                                  |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural                    gas sales price (per Mcf)                  |   | $                                                                   | 6.73   |                                             |   | 9% |   | $ | 6.19 |   | $ | 6.27 |   |   | 4% |   | $ | 6.00 |   |
| Gain                    (loss) due to hedging (per Mcf)               |   |                                                                | (0.11  | )                                                |   | (62%) |   |   | (0.29 | ) |   | (0.06 | ) |   | (70%) |   |   | (0.20 | ) |
| Realized                    natural gas price (per Mcf)               |   | $                                                                   | 6.62   |                                             |   | 12% |   | $ | 5.90 |   | $ | 6.21 |   |   | 7% |   | $ | 5.80 |   |
|                                                                  |   |                                                                |   |                                             |   |   |  |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural                    gas equivalent sales price (per Mcfe)      |   | $                                                                   | 7.16   |                                             |   | 15% |   | $ | 6.22 |   | $ | 6.77 |   |   | 13% |   | $ | 5.99 |   |
| Gain                    (loss) due to hedging (per Mcfe)              |   |                                                                | (0.23  | )                                                |   | (47%) |   |   | (0.43 | ) |   | (0.21 | ) |   | (36%) |   |   | (0.33 | ) |
| Realized                    natural gas equivalent (per Mcfe)         |   | $                                                                   | 6.93   |                                             |   | 20% |   | $ | 5.79 |   | $ | 6.56 |   |   | 16% |   | $ | 5.66 |   |

|                                                                  |   | **For                    the three month**** periods** **ended**** June                    30, **2005 and 2004**** |   | **For                    the six month****periods****ended**** June                    30, **2005                    and 2004**** |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                  |   |                                                                                                                                   |   |                                                                                                                                        |   |
|                                                                  |   |                                                                                                                                   |   |                                                                                                                                        |   |
| **Change                    in revenue from the sale of oil**         |   |                                                                                                                                   |   |                                                                                                                                        |   |
| Price                    variance impact                              |   | $                                                                                                                                      | 1,417  |                                                                                                                                        | $      | 3,102 |   |
| Volume                    variance impact                             |   |                                                                                                                                   | (1,431 | )                                                                                                                                           |   | (2,854 | ) |
| Cash                    settlement of hedging contracts               |   |                                                                                                                                   | 285    |                                                                                                                                        |   | 249 |   |
| Total                    change                                       |   | $                                                                                                                                      | 271    |                                                                                                                                        | $      | 497 |   |
| **Change                    in revenue from the sale of natural gas** |   |                                                                                                                                   |   |                                                                                                                                        |   |   |   |
| Price                    variance impact                              |   | $                                                                                                                                      | 1,104  |                                                                                                                                        | $      | 1,093 |   |
| Volume                    variance impact                             |   |                                                                                                                                   | (1,270 | )                                                                                                                                           |   | (1,807 | ) |
| Cash                    settlement of hedging contracts               |   |                                                                                                                                   | 413    |                                                                                                                                        |   | 619 |   |
| Total                    change                                       |   | $                                                                                                                                      | 247    |                                                                                                                                        | $      | (95 | ) |

|   | · | A                    15 % increase in our sales price for oil and natural gas combined                    with a                    53% decrease in losses from the cash settlement of derivative                    commodity                    contracts led to increases of $2.5 million and $698,000, respectively,                    to                    our revenue from the sale of oil and natural gas during the second                    quarter                    2005. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | These                    increases were partially offset by a $2.7 million decrease to                    our second                    quarter oil and natural gas sales due to a decrease in this year’s second                    quarter production volumes. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table              of Contents*

|   | · | A                    13% increase in our sales price for oil and natural gas combined                    with a                    43% decrease in losses from the cash settlement of derivative                    commodity                    contracts led to increases of $4.2 million and $868,000, respectively,                    to                    our revenue from the sale of oil and natural gas during the first                    six                    months of 2005. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | These                    increases were partially offset by a $4.7 million decrease to                    our oil and                    natural gas sales due to a decrease in our production volumes                    for the                    first six months of 2005. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Other          revenue*

**Operating          costs and expenses**

*Production          costs. *

|                                                 |   | **Three                    months ended June 30,**                  |   | **Six                    months ended June 30,** |   |
|------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                 |   | **2005**                                                            |   | **%                    Change**                  |   | **2004** |   | **2005** |   | **%                    Change** |   | **2004** |   |
|                                                 |   |                                                                |   |
|                                                 |   | **(In                    thousands, except per unit measurements)** |   |
| **Production                    costs:**             |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |
| Operating                    & maintenance       |   | $                                                                   | 1,389  |                                             |   | 36% |   | $ | 1,021 |   | $ | 2,811 |   |   | 37% |   | $ | 2,047 |   |
| Expensed                    workovers                |   |                                                                | (213   | )                                                |   | NM |   |   | 118 |   |   | 311 |   |   | (8%) |   |   | 339 |   |
| Ad                    valorem taxes                  |   |                                                                | 214    |                                             |   | 29% |   |   | 166 |   |   | 486 |   |   | 48% |   |   | 328 |   |
| Lease                    operating expenses          |   | $                                                                   | 1,390  |                                             |   | 7% |   | $ | 1,305 |   | $ | 3,608 |   |   | 33% |   | $ | 2,714 |   |
|                                                 |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production                    taxes                  |   |                                                                | 366    |                                             |   | (59%) |   |   | 896 |   |   | 1,168 |   |   | (34%) |   |   | 1,759 |   |
| Production                    costs                  |   | $                                                                   | 1,756  |                                             |   | (20%) |   | $ | 2,201 |   | $ | 4,776 |   |   | 7% |   | $ | 4,473 |   |
|                                                 |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Production                    cost ($ per Mcfe):** |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                    & maintenance       |   | $                                                                   | 0.52   |                                             |   | 58% |   | $ | 0.33 |   | $ | 0.52 |   |   | 58% |   | $ | 0.33 |   |
| Expensed                    workovers                |   |                                                                | (0.08  | )                                                |   | NM |   |   | 0.04 |   |   | 0.06 |   |   | 0% |   |   | 0.06 |   |
| Ad                    valorem taxes                  |   |                                                                | 0.08   |                                             |   | 60% |   |   | 0.05 |   |   | 0.09 |   |   | 80% |   |   | 0.05 |   |
| Lease                    operating expenses          |   | $                                                                   | 0.52   |                                             |   | 24% |   | $ | 0.42 |   | $ | 0.67 |   |   | 52% |   | $ | 0.44 |   |
|                                                 |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production                    taxes                  |   |                                                                | 0.14   |                                             |   | (52%) |   |   | 0.29 |   |   | 0.22 |   |   | (24%) |   |   | 0.29 |   |
| Production                    costs                  |   | $                                                                   | 0.66   |                                             |   | (7%) |   | $ | 0.71 |   | $ | 0.89 |   |   | 22% |   | $ | 0.73 |   |

----

*Table              of Contents*

|   | · | A                    reduction in our second quarter production volumes combined with                    the                    receipt of a $540,000 severance tax refund related to six wells                    were the                    primary reasons for the decrease in our second quarter 2005 production                    taxes. These decreases were partially offset by increases in                    the sales                    price we received from the sale of oil and natural gas. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                    decrease in our production taxes was partially offset by increases                    in our                    second quarter 2005 costs for operating and maintenance and ad                    valorem                    taxes. Approximately 61% of the increase in our second quarter                    2005                    O&M expenses was related to new wells that were not producing during                    the second quarter last year. Other items that led to higher                    O&M                    expenses were increases in costs for saltwater disposal, compressor                    rental                    and maintenance and overhead. The increase in our second quarter                    2005 ad                    valorem taxes was due to higher oil and natural gas prices in                    2004. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increases                    in our O&M expenses and ad valorem taxes during the first six months                    of 2005 were the primary factors that led to the increase in                    our                    production costs. Approximately 64% of the increase in our O&M                    expenses was related to new wells that were not producing during                    the first                    six months of last year. Other items that led to the higher O&M                    expenses were increases in costs for saltwater disposal, compressor                    rental                    and maintenance and miscellaneous lease operating expenses. The                    increase                    in our 2005 ad valorem taxes was due to higher oil and natural gas                    prices in 2004. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | These                    increases were partially offset by lower costs for expensed workovers                    and                    lower production taxes. A reduction in our second quarter production                    volumes combined with the receipt of $540,000 severance tax refund                    related                    to six wells were the primary reasons for the decrease in our                    production                    taxes for the first six months of 2005. These decreases were                    partially                    offset by increases in the sales price we received from the sale                    of oil                    and natural gas. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our                    unit O&M expenses for the second quarter of 2005 were $0.19 per Mcfe                    higher when compared to the second quarter last year. Unit O&M                    expenses related to new wells that were not producing during                    the second                    quarter last year represented approximately 42% of this increase.                    Increases in our unit costs for saltwater disposal, compressor                    rental and                    maintenance and overhead were the primary factors for the remainder                    of the                    increase. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our                    unit ad valorem taxes for the second quarter of 2005 were up                    $0.03 per                    Mcfe when compared to the second quarter last year. This increase                    is                    primarily due to an increase in our total ad valorem taxes due                    to higher                    oil and natural gas prices in 2004 combined with a decrease in                    production                    volumes. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | These                    increases were partially offset by a $0.15 per Mcfe decrease                    in our second                    quarter 2005 unit production taxes. This decrease was primarily                    due to the                    receipt of a $540,000 severance tax refund. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our                    unit O&M expenses for the first six months of 2005 were up $0.19 per                    Mcfe when compared to last year. Unit O&M costs related to new wells                    that were not producing during the first six months of 2004 represented                    approximately 48% of this increase. Increases in our unit costs                    for                    saltwater disposal, compressor rental and maintenance and miscellaneous                    lease operating expenses were the primary factors for the remainder                    of the                    increase. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table              of Contents*

|   | · | Our                    unit ad valorem taxes for the first six months of 2005 were up                    $0.04 per                    Mcfe when compared to last year. This increase is primarily due                    to an                    increase in total ad valorem taxes due to higher oil and natural                    gas                    prices in 2004 combined with a decrease in production                    volumes. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | These                    increases were partially offset by a $0.07 per Mcfe decrease                    in our unit                    production taxes during the first six months of 2005. This decrease                    was                    primarily due to the receipt of a $540,000 severance tax refund. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*General          and administrative expenses. *

|                                                               |   | **Three                    months ended June 30,**                  |   | **Six                    months ended June 30,** |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                               |   | **2005**                                                            |   | **%                    Change**                  |   | **2004** |   | **2005** |   | **%                    Change** |   | **2004** |   |
|                                                               |   |                                                                |   |
|                                                               |   | **(In                    thousands, except per unit measurements)** |   |
| General                    and administrative costs                |   | $                                                                   | 2,501  |                                             |   | 3% |   | $ | 2,429 |   | $ | 4,804 |   |   | (2%) |   | $ | 4,893 |   |
| Capitalized                    general and administrative costs    |   |                                                                | (1,197 | )                                                |   | (3%) |   |   | (1,230 | ) |   | (2,402 | ) |   | (3%) |   |   | (2,474 | ) |
| General                    and administrative expenses             |   | $                                                                   | 1,304  |                                             |   | 9% |   | $ | 1,199 |   | $ | 2,402 |   |   | (1%) |   | $ | 2,419 |   |
|                                                               |   |                                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General                    and administrative expense ($ per Mcfe) |   | $                                                                   | 0.49   |                                             |   | 26% |   | $ | 0.39 |   | $ | 0.45 |   |   | 15% |   | $ | 0.39 |   |

|   | · | An                    increase in fees paid to outside consultants and our independent                    public                    accountants for work related to Section 404 of Sarbanes-Oxley                    and                    increases in costs for contract employees, employee training,                    corporate                    insurance and travel. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | These                    increases were partially offset by decreases in employee compensation                    expenses, office rent, financial reporting expenses and directors                    fees and                    costs. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An                    increase in fees paid to our outside consultants and our independent                    public accountants for work related to Section 404 of Sarbanes-Oxley                    and                    increases in costs for contract employees, employee training,                    corporate                    insurance and travel. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | These                    increases were offset by decreases in employee compensation expenses,                    office rent, financial reporting expenses and legal fees. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Depletion          of oil and natural gas properties. *

----

*Table              of Contents*

|                                                                        |   | **Three                    months ended June 30,**                  |   | **Six                    months ended June 30,**  |   |
|-----------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                                        |   | **2005**                                                            |   | **%                    Change**                        |   | **2004** |   | **2005** |   | **%                    Change** |   | **2004** |   |
|                                                                        |   |                                                                |   |                                                   |   | **(Restated)** |   |   |   |   |   | **(Restated)** |   |
|                                                                        |   | **(In                    thousands, except per unit measurements)** |   |
|                                                                        |   |                                                                |   |
| Depletion                    of oil and natural gas properties              |   | $                                                                   | 7,206  |                                                   |   | 30% |   | $ | 5,524 |   | $ | 13,659 |   |   | 28% |   | $ | 10,648 |   |
| Depletion                    of oil and natural gas properties ($ per Mcfe) |   | $                                                                   | 2.71   |                                                   |   | 51% |   | $ | 1.79 |   | $ | 2.55 |   |   | 47% |   | $ | 1.73 |   |

*Net          interest expense. *

|                                                                    |   | **Three                    months ended June 30,** |   | **Six                    months ended June 30,** |   |
|-------------------------------------------------------------------------|--------|----------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                    |   | **2005**                                           |   | **%                    Change**                  |   | **2004** |   | **2005** |   | **%                    Change** |   | **2004** |   |
|                                                                    |   | **(In                    thousands)**              |   |
|                                                                    |   |                                               |   |
| Interest                    on senior credit facility                   |   | $                                                  | 547    |                                             |   | 120% |   | $ | 249 |   | $ | 870 |   |   | 100% |   | $ | 434 |   |
| Interest                    on senior subordinated notes                |   |                                               | 381    |                                             |   | (14%) |   |   | 445 |   |   | 759 |   |   | (14%) |   |   | 884 |   |
| Commitment                    fees                                      |   |                                               | 18     |                                             |   | (66%) |   |   | 53 |   |   | 56 |   |   | (48%) |   |   | 107 |   |
| Dividend                    on mandatorily redeemable preferred stock   |   |                                               | 193    |                                             |   | 8% |   |   | 179 |   |   | 381 |   |   | 8% |   |   | 354 |   |
| Amortization                    of deferred loan and debt issuance cost |   |                                               | 127    |                                             |   | (34%) |   |   | 191 |   |   | 253 |   |   | (34%) |   |   | 383 |   |
| Other                    general interest expense                       |   |                                               | 3      |                                             |   | (50%) |   |   | 6 |   |   | 6 |   |   | (57%) |   |   | 14 |   |
| Capitalized                    interest expense                         |   |                                               | (503   | )                                                |   | 87% |   |   | (269 | ) |   | (818 | ) |   | 51% |   |   | (540 | ) |
| Net                    interest expense                                 |   | $                                                  | 766    |                                             |   | (10%) |   | $ | 854 |   | $ | 1,507 |   |   | (8%) |   | $ | 1,636 |   |
|                                                                    |   |                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                    average debt outstanding                    |   | $                                                  | 74,899 |                                             |   | 37% |   | $ | 62,675 |   | $ | 68,239 |   |   | 9% |   | $ | 58,673 |   |
| Average                    interest rate on outstanding indebtedness(a) |   |                                               | 6.1    | %                                                |   |   |   |   | 5.9 | % |   | 6.1 | % |   |   |   |   | 6.1 | % |

| · | The                    decline in our second quarter 2005 net interest expense was primarily                    due                    to a $234,000 increase in the amount of interest that we capitalized                    during the second quarter 2005. This increase more than offset                    an increase                    in our total interest for the second quarter                    2005. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                    primary factor that led to the increase in our total interest                    for the                    second quarter 2005 was an increase in amount of borrowings outstanding                    under our senior credit facility and an increase in the rate                    that we paid                    on those borrowing due to an increase in the Eurodollar rate. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table              of Contents*

| · | The                    decline in our net interest expense for the first six months                    of 2005 was                    primarily due to a $278,000 increase in the amount of interest                    that we                    capitalized during the period. This increase more than offset                    an increase                    in our total interest for the first six months of                    2005. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                    primary factor that led to the increase in our total interest                    for the                    first six months of 2005 was an increase in the total amount                    we borrowed                    under our senior credit facility and an increase in the rate                    that we paid                    on those borrowing due to an increase in the Eurodollar                    rate. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Other          income (expense*

|                                                                                                                                                                        |   | **Three                    months ended June 30,** |   | **Six                    months ended June 30,** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                                                                                                                        |   | **2005**                                           |   | **%                    Change**                  |   | **2004** |   | **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 |   | $                                                  | (63    | )                                                |   | NM |   | $ | — |   | $ | (413 | ) |   | 588% |   | $ | (60 | ) |
| Non-cash                    gain (loss) for ineffective portion of cash flow hedges                                                                                         |   |                                               | 203    |                                             |   | NM |   |   | (187 | ) |   | (53 | ) |   | NM |   |   | — |   |
| Other                    non-cash gain (loss)                                                                                                                               |   |                                               | (51    | )                                                |   | NM |   |   | — |   |   | (59 | ) |   | NM |   |   | — |   |
| Other                    cash income (expense)                                                                                                                              |   |                                               | 88     |                                             |   | 28% |   |   | 69 |   |   | 171 |   |   | 148% |   |   | 69 |   |
| Other                    income (loss)                                                                                                                                      |   | $                                                  | 177    |                                             |   | NM |   | $ | (118 | ) | $ | (354 | ) |   | NM |   | $ | 9 |   |

|                                                             |   | **Three                    months ended June 30,** |    | **Six                    months ended June 30,** |   |
|------------------------------------------------------------------|--------|----------------------------------------------------|---------|--------------------------------------------------|--------|
|                                                             |   | **2005**                                           |    | **%                    Change**                  |   | **2004** |   | **2005** |   | **%                    Change** |   | **2004** |   |
|                                                             |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| ***Written                    puts***                            |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Volumes                    (Bbl)                                 |   |                                               | 6,000   |                                             |   | NM |   |   | — |   |   | 6,000 |   |   | NM |   | $ | — |   |
| Average                    price ($ per Bbl)                     |   | $                                                  | 38.00   |                                             |   | NM |   | $ | — |   | $ | 38.00 |   |   | NM |   | $ | — |   |
| Gain                    /(loss) upon settlement ($ in thousands) |   | $                                                  | — |                                             |   | NM |   | $ | — |   | $ | — |   |   | NM |   | $ | — |   |

----

*Table                of Contents*

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

|                                                           |   | **Six                    months ended June 30,** |    |
|----------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                           |   | **2005**                                         |    | **%                    Change** |   | **2004** |   |
|                                                           |   | **(In                    thousands)**            |    |
| Net                    income                                  |   | $                                                | 7,858   |   |   | (22%) |   | $ | 10,063 |   |
| Non-cash                    items                              |   |                                             | 19,589  |   |   | 15% |   |   | 17,021 |   |
| Changes                    in working capital and other items  |   |                                             | 754     |   |   | NM |   |   | (1,734 | ) |
| Cash                    flows provided by operating activities |   | $                                                | 28,201  |   |   | 11% |   | $ | 25,350 |   |
| Cash                    flows used by investing activities     |   |                                             | (56,813 | ) |   | 49% |   |   | (38,107 | ) |
| Cash                    flows provided by financing activities |   |                                             | 32,756  |   |   | 81% |   |   | 18,089 |   |
| Net                    increase in cash and cash equivalents   |   | $                                                | 4,144   |   |   | (22%) |   | $ | 5,332 |   |

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

| · | Our                    total revenues for the first six months of 2005 increased $5.1                    million due                    to an increase in the prices we received for our oil and natural                    gas and a                    decrease in the amounts we lost upon the settlement of our derivative                    contracts. These changes were partially offset by a $4.7 million                    decrease                    to our total revenue due to a decrease in our production volumes                    for the                    first six months of 2005. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                    decrease in our production costs for the first six months of                    2005 resulted                    in a $303,000 increase in our cash flows provided by operating                    activities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                    collection of accounts receivable in excess of the payment of                    accounts                    payable during the first six months of 2005 increased our cash                    flows                    provided by operating activities by $8.9                    million. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An                    increase in the amount of royalties we paid during the first                    half of 2005                    decreased our cash flows provided by operating activities by                    $3.3                    million. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                    decrease in the amount of participant advances during the first                    six months                    of 2005 resulted in a $2.5 million decrease to our cash flows                    provided by                    operating activities. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Working          Capital**

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*Table              of Contents*

**Capital            expenditures for oil and natural gas activities:**

|                                    |   | **Six                    months ended June 30,** |   |
|-----------------------------------------|--------|--------------------------------------------------|--------|
|                                    |   | **2005**                                         |   | **%                    Change** |   | **2004** |   |
|                                    |   |                                             |   |   |   |   |   |
|                                    |   | **(In                    thousands)**            |   |
|                                    |   |                                             |   |   |   |   |   |
| Drilling                    (1)         |   | $                                                | 45,238 |   |   | 45% |   | $ | 31,262 |   |
| Land                    and seismic     |   |                                             | 10,246 |   |   | 96% |   |   | 5,221 |   |
| Capitalized                    cost (2) |   |                                             | 3,381  |   |   | 7% |   |   | 3,161 |   |
| Capitalized                    ARO      |   |                                             | 160    |   |   | 7% |   |   | 335 |   |
| Total                                   |   | $                                                | 59,025 |   |   | 48% |   | $ | 39,979 |   |

| (1) | Includes                    $1.8 million and $1.4 million of accrued drilling costs for 2005                    and 2004,                    respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | For                    2005 includes $2.4 million in capitalized general and administrative                    cost,                    $818,000 in capitalized interest cost and $161,000 of capitalized                    stock                    compensation expense. For 2004 includes $2.4 million in capitalized                    general and administrative cost, $540,000 in capitalized interest                    cost and                    $146,000 of capitalized stock compensation expense. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

**Senior          Credit Facility**

**Senior          Subordinated Notes**

**Common          Stock Transactions**

|                                                     |   | **Shares                    Issued** |    | **Net                    Proceeds**   |   |
|----------------------------------------------------------|--------|--------------------------------------|---------|---------------------------------------|--------|
|                                                     |   |                                 |    | **(In                    thousands)** |   |
| ***2005                    common stock transactions:*** |   |                                 |    |                                  |   |
| Exercise                    of employee stock options    |   |                                 | 125,500 |                                  | $      | 434 |   |
|                                                     |   |                                 |    |                                  |   |   |   |
| ***2004                    common stock transactions:*** |   |                                 |    |                                  |   |   |   |
| Exercise                    of employee stock options    |   |                                 | 208,081 |                                  | $      | 598 |   |

**Other          Matters**

*Effects          of Inflation and Changes in Prices*

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*Table              of Contents*

*Environmental          and Other Regulatory Matters*

*New          Accounting Pronouncements*

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*Table              of Contents*

*Forward          Looking Information*

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*Table              of Contents*

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

**Derivative          Contracts**

|                                                |   |                             |   |                                  |   | **Notional                    Amount** |   |                 |
|-----------------------------------------------------|--------|----------------------------------|--------|---------------------------------------|--------|----------------------------------------|--------|----------------------|
| **Settlement                    Period**            |   | **Derivative****Instrument**     |   | **Hedge                    Strategy** |   | **Gas****(MMBTU)**                     |   | **Oil****(Barrels)** |   | **NYMEX                    Reference****Price** |
| ***Costless                    Collars***           |   |                             |   |                                  |   |                                   |   |                 |   |   |
| 07/01/05                    - 10/31/05              |   | Purchased                    put |   | Cash                    flow          |   | 240,000                                |   |                 |   | $5.45 |
|                                                |   | Written                    call  |   | Cash                    flow          |   | 240,000                                |   |                 |   | 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                    - 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 |
| 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 |
| 07/01/05                    - 03/31/06              |   | Purchased                    put |   | Cash                    flow          |   |                                   |   | 54,000               |   | $48.00 |
|                                                |   | Written                    call  |   | Cash                    flow          |   |                                   |   | 54,000               |   | 60.70 |
|                                                |   | Written                    put   |   | Undesignated                          |   |                                   |   | 54,000               |   | 38.00 |
| 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 |
| 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 |

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*Table                of Contents*

|                                                |   |                             |   |                                  |   | **Notional                    Amount** |   |                 |
|-----------------------------------------------------|--------|----------------------------------|--------|---------------------------------------|--------|----------------------------------------|--------|----------------------|
| **Settlement                    Period**            |   | **Derivative****Instrument**     |   | **Hedge                    Strategy** |   | **Gas****(MMBTU)**                     |   | **Oil****(Barrels)** |   | **NYMEX                    Reference****Price** |
| ***Costless                    Collars***           |   |                             |   |                                  |   |                                   |   |                 |   |   |
| 04/01/06                    - 06/30/06              |   | Purchased                    put |   | Cash                    flow          |   |                                   |   | 16,500               |   | $54.80 |
|                                                |   | Written                    call  |   | Cash                    flow          |   |                                   |   | 16,500               |   | 75.00 |
| ***Three                    Way Costless Collars*** |   |                             |   |                                  |   |                                   |   |                 |   |   |
| 04/01/06                    - 10/31/06              |   | Purchased                    put |   | Cash                    flow          |   | 420,000                                |   |                 |   | $7.50 |
|                                                |   | Written                    call  |   | Cash                    flow          |   | 420,000                                |   |                 |   | 9.15 |
|                                                |   | Written                    put   |   | Undesignated                          |   | 420,000                                |   |                 |   | 6.25 |
|                                                |   |                             |   |                                  |   |                                   |   |                 |   |   |
|                                                |   |                             |   |                                  |   |                                   |   |                 |   |   |
|                                                |   |                             |   |                                  |   |                                   |   |                 |   |   |

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

**Material          Control Weakness Previously Disclosed**

**Evaluation          of Disclosure Controls and Procedures**

**Changes          in Internal Control over Financial Reporting**

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*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** |
|----------------------------------|-----------------------------------------------------------------------------------|

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*Table              of Contents*

| **ITEM                    4.** | **SUBMISSION                    OF MATTERS TO A VOTE OF                    SECURITYHOLDERS** |
|--------------------------------|----------------------------------------------------------------------------------------------|

| (a) | We                    held our Annual Stockholders meeting on Wednesday, June 8, 2005,                    in                    Austin, Texas at 10:00 a.m. local                    time. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Proxies                    were solicited by our  Board of Directors pursuant to Regualtion                    14A under the Securities Exchange Act of 1934. There were no                    solicitations                    in opposition to the Board of Directors’ nominees as listed in the proxy                    statement and all of such nominees were duly                    elected. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Out                    of the total 42,489,396 shares of our common stock and outstanding                    and                    entitled to vote, 31,425,571 shares were present in person or                    by proxy,                    representing approximately 73.96%. They only matters voted on                    by our                    stockholders, as fully described in the definitive proxy materials                    for the                    annual meeting, are set forth below. The results were as                    follows: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | To                    elect eight directors to serve until the Annual Meeting of Stockholders                    in                    2006. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------|

| **Nominee**                                         |   | **Number                    of shares voting for election as director** |   | **Number                    of shares voting against election as director** |   | **Number                    of shares withholding authority to vote for election as                    director** |
|-----------------------------------------------------|--------|-------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
|                                                |   |                                                                    |   |                                                                        |   |                                                                                                              |
| Ben                    M. “Bud” Brigham |   | 24,143,828                                                              |   | -                                                                           |   | 7,281,743                                                                                                         |
| David                    T. Brigham                 |   | 23,997,683                                                              |   | -                                                                           |   | 7,427,888                                                                                                         |
| Harold                    D. Carter                 |   | 23,141,813                                                              |   | -                                                                           |   | 8,283,758                                                                                                         |
| Stephen                    C. Hurley                |   | 31,010,130                                                              |   | -                                                                           |   | 415,441                                                                                                           |
| Stephen                    P. Reynolds              |   | 30,633,066                                                              |   | -                                                                           |   | 792,505                                                                                                           |
| Hobart                    A. Smith                  |   | 30,814,785                                                              |   | -                                                                           |   | 610,786                                                                                                           |
| Steven                    A. Webster                |   | 23,167,761                                                              |   | -                                                                           |   | 8,257,810                                                                                                         |
| R.                    Graham Whaling                |   | 31,010,330                                                              |   | -                                                                           |   | 415,241                                                                                                           |

|   | 2. | To                    approve the appointment of PricewaterhouseCoopers LLP as                    our independent auditors for the year ending December 31,                    2005. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For       | 30,972,445 |
|-----------|------------|
| Against   | 452,401    |
| Abstained | 725        |

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

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*Table              of Contents*

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

| **Number** |    | **Description**                                                                                                                                                                                                                                                                                                             |
|------------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1       | — | Fourth                    Amended and Restated Credit Agreement, dated June 29, 2005 between                    Brigham                    Oil & Gas, L.P., Bank of America, N.A., The Royal Bank of Scotland                    plc, BNP Paribas and Banc of America Securities LLC.                                   |
|       |    |                                                                                                                                                                                                                                                                                                                        |
| 10.2       | — | The                    Resignation of Agent, Appointment of Successor Agent and Assignment                    of                    Security Instruments dated June 29, 2005 by and among Brigham                    Oil &                    Gas, L.P., Société Générale and Bank of America, N.A. |
|       |    |                                                                                                                                                                                                                                                                                                                        |
| 10.3       | — | First                    Amendment to Second Amended and Restated Subordinated Credit                    Agreement                    dated June 29, 2005, between Brigham Oil & Gas, L.P., and The Royal                    Bank of Scotland plc.                                                                      |
|       |    |                                                                                                                                                                                                                                                                                                                        |
| 10.4       | — | Second                    Amended and Restated Intercreditor and Subordination Agreement,                    dated                    January 21, 2005.                                                                                                                                                                     |
|       |    |                                                                                                                                                                                                                                                                                                                        |
| 10.5       | — | First                  Amendment to the Second Amended and Restated Intercreditor and                  Subordination Agreement                                                                                                                                                                                              |
|       |    |                                                                                                                                                                                                                                                                                                                        |
| 31.1       | — | Certification                    of Chief Executive Officer of the Company pursuant to Rule 13a-14(a)                    of                    the Securities Exchange Act of 1934                                                                                                                                          |
|       |    |                                                                                                                                                                                                                                                                                                                        |
| 31.2       | — | 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                                                                                                                                                                                              |

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*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 |

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