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