Oasis Petroleum Announces 35% Growth

March 4, 2015 Elizabeth Alford

Oasis Petroleum announced 2014 results and rolled out updated projections for the new year.

The company increased its net income by 122% from $228.0 million in 2013 to $506.9 million in 2014 and ended the the year with $45.8 million of cash and cash equivalents.

Other 2014 highlights include:

Increased average daily production 35% from 2013 to 45,656 Boepd
Q4 2014 average daily production of 50,143 Boepd
Completed and placed on production 195 gross operated wells during 2014
Increased total estimated net proved oil and natural gas reserves by 24%

Bakken Highlights

The following table describes the Company's producing Bakken and TFS wells by project area in the Williston Basin as of December 31, 2014.

“Thomas B. Nusz, Oasis’ Chairman and CEO commented, “Capitalizing on our premier position in the Williston Basin, we have grown volumes by over 35% in 2014, including production in the fourth quarter of 2014 of 50,143 Boepd. While we are excited about the strong growth and the potential of our significant inventory position, we have turned our attention to managing the business in light of the current challenging market environment.”

2015 Projections

Citing lower commodity prices, Oasis Petroleum announced it will be reducing its 2015 capital spending by 12% over 2014 and expects the total to reach $705 million. Additionally, the company expects to complete 79 gross (63.3 net) operated wells and 2.6 net non-operated wells in 2015.

Oasis on Track to Achieve Bakken Production Targets for 2014

May 23, 2014 Kirk Eggleston

Oasis Petroleum is on track to reach the low end of its estimated 2014 daily production target of 46,000 boe/d in the second quarter of the year. Current production estimates for Oasis' second quarter production are between 43,000 boe/d - 46,000 boe/d.

During the first quarter of 2014, the company's total production was 42,856 boe/d. That figure represents production growth of approximately 5% quarter over quarter for the company.

To help achieve its production targets, Oasis will continue slickwater tests, after seeing a 25% production uplift in three of its core operating areas. Specifically, these areas are Indian Hills, Foreman Butte, and Red Bank. Oasis says it now intends to complete 20% of wells during the second half of 2014 with the slickwater technique.

“Oasis CEO Thomas B. Nusz, said, “based on encouraging results to date from slickwater tests and other completion technology, we intend to complete over 60% of our wells in the second half of 2014 with alternative completion techniques. We are focused on designs that may increase production or reduce costs, ultimately driving higher per well and per drilling spacing unit returns.”

During the first quarter, Oasis completed the sale of certain non-operated properties in its Sanish project area and other adjacent non-operated properties on March 5, 2014 for cash proceeds of $321.9 million. Properties ear-marked in the sale were 8,354 net acres and 28.2 net producing Bakken and Three Forks wells. Production from the properties was 2,691 boe/d during Q4 2013.

Also during the first quarter, the company picked up an additional rig, and anticipates a sixteenth rig after the spring. The company says a majority of its rigs will be operating on pads through the spring.

Oasis Sells Bakken Acreage - Strong Production Growth in 2014

February 4, 2014 Kirk Eggleston

Oasis Petroleum Bakken Acreage Map - Acquisition Included

Oasis Petroleum set its 2014 capital budget at $1,425 million, with 96% of expenditures ($1,367 million) earmarked for drilling and completion of its operated and non-operated wells.

The company saw production growth jump ~50% in 2013 from its' 2012 figures, and expects continued growth in 2014.

Oasis Anticipates Growing Production in 2014

Oasis plans on increasing production to 46,000 boed/d - 50,000 boe/d by the end of the year.

If the company reaches it's midpoint estimate of 48,000 boe/d, then that will be ~42% higher than total production of 33,904 boe/d in 2013.

Oasis Petroleum Divestiture of Bakken Acreage

A portion of Oasis's capital budget for 2014 will come from a $333 million sale in January of its' non-operated Sanish properties and a few non-operated leases adjacent to the Sanish.

Whiting Petroleum is believed to be the operator of the Sanish properties, and would be a logical buyer, although, Oasis has not disclosed any information about the purchaser.

“Mr. Nusz said, “The funds from the Sanish divestiture strengthen our liquidity position to execute on our accelerated drilling program in 2014. The transaction is consistent with our growth strategy as we de-lever the balance sheet and put the capital into our high return operated projects.”

Properties ear-marked in the sale are 8,354 net acres and 28.2 net producing Bakken and Three Forks wells. Production from the properties was 2,691 boe/d during Q4 2013.

In 2013, Oasis grew its Bakken acreage to 515,314 total net acres from 335,383 net acres in 2012. With ample running room, non-operated and non-core properties become a fit for divesting. The company generated cash that can be used immediately and saved future development expenses that it can directed toward operated wells and acreage.

Oasis at a Glance in 2014

$1,425 million capital budget ($1,367 million for drilling and completing wells)
42% production increase to 46,000 boed/d - 50,000 boe/d expected by the end of 2014
$333 million sale of 8,354 net acres in January 2014
Increase total operated rigs from 14 - 16 by second half of 2014
Complete approximately 205 gross (147.8 net) operated and 7.7 net non-operated wells

Oasis Petroleum Nearing Half a Million Acres in the Bakken

December 3, 2013 R.T. Dukes

Oasis Petroleum added acreage in the third quarter is nearing half a million acres prospective for the Bakken and Three Forks.

In September, the company announced several deals that added over 160,000 acres to the company's position.

The deals were just one highlight of many from the company's third quarter earnings release:

Oasis now has an inventory of almost 3,000 potential drilling locations
Added two rigs through the acquisitions. 14 running across its position now
Expanding Oasis Well Services
Decreased well costs to $7.5 million
Successful results from the Three Forks 2nd and 3rd benches
Production grew 10% quarter over quarter to ~33,000 boe/d

“Including production from our recent acquisitions, we expect production to range between 42,000 boe/d to 46,000 boe/d in the fourth quarter of 2013.”

— Mr. Nusz, CEO

At year-end, watch for additional announcements related to results from downspacing tests and wells in the lower portion of the Three Forks.

The company currently expects to drill 4-6 wells in the Middle Bakken and 1st bench of the Three Forks in the best areas of the the basin. Drilling in 2014 will be split relatively evenly between the Bakken and Three Forks. If wells in the lower portion of the Three Forks prove successful, the mix of drilling could be weighted toward the Three Forks more than currently planned.

Oasis Petroleum Is Testing Bakken & Three Forks Well Spacing

October 9, 2013 R.T. Dukes

Oasis Petroleum believes the company can drill four Middle Bakken and four Three Forks wells on each 1,280-acre unit, but the future might be more dense drilling than they currently suggest.

Oasis is testing up to seven wells per formation in the Bakken and the first bench of the Three Forks (TFS 1).

The company also notes that other operators are testing as many as eight wells per formation in the Middle Bakken and Three Forks 1st, 2nd, and 3rd benches.

Watch for results over the next few months to determine how many wells can be drilled in the Bakken and the Three Forks' first bench. It will probably be late next year before we know how many wells can be drilled targeting the lower Three Forks intervals.

Oasis and Continetnal Resources have the most downspacing pilots being tested, but we'll see results from Kodiak and Whiting as well.