Oasis exceeds Q1 production predictions

By The Bakken Magazine Staff | June 18, 2015

Oasis Petroleum Inc., an independent exploration and production company, announced that company total revenues were down in the first quarter of 2015, primarily due to lower oil and natural gas prices despite beating its previously set production predictions. In the company’s 2015 Q1 earnings call, Oasis reported a sequential quarter-over-quarter decrease in lease operating expense (LOE) per barrels of oil equivalent (boe), which was due to lower water volumes produced as well as more salt water disposal volumes going to Oasis Midstream Services disposal wells, decreased workover costs and lower LOE on nonoperated volumes.

“Oasis exceeded production guidance of 47,000 barrels of oil equivalent per day (boepd) to 49,000 boepd in the first quarter of 2015, as new wells brought on during the first quarter exceeded production expectations with over 60 percent of the wells completed with high-intensity stimulation,” said Thomas Nusz, Oasis chairman and CEO. “Additionally, CapEx tracked in line with our budget, with drilling and completion capital coming in at $216.6 million, or $8.3 million below our budget.”

Oasis brought on 23 gross operated and 0.9 net nonoperated wells on producing in the Williston Basin during Q1. The company has five rigs running and 91 gross operated wells awaiting completion in the Williston Basin.

“The White Unit in Wild Basin, our first multislickwater test, continues to outperform the high-end of our type curve,” said Nusz.

The test included seven wells in a portion of a single drilling space unit (DSU), all completed with slickwater completions. Nusz added that the Middle Bakken well has produced approximately 256,000 boe through 216 days and the wells in the first bench of the Three Forks have produced on average 167,000 boe through 192 days. Oasis also completed its first high-volume proppant test in Alger.

“The Helling Trust has two new Middle Bakken wells that have produced on average 139,000 boe through 88 days and a well completed in the first bench of the Three Forks wells that has produced 104,000 boe through 87 days. All of the Middle Bakken and Three Forks wells in both the White Unit and the Helling Trust have early time production that is trending over double our corresponding production data for our 750,000 boe Middle Bakken type curve and our 600,000 boe Three Forks type curve, respectively,” Nusz said. “The continued outperformance of both of these high intensity completion tests continues to provide us with confidence in our plans to target our core area with high-intensity completions.”