Oasis Tops Project Schedule, Aims at High-Density, Infill

By The Bakken magazine staff | March 23, 2014

Oasis Petroleum couldn’t wait to explain its 2013 accomplishments and plans for 2014. In early February, the Bakken’s top pure play operator provided an update to investors and analysts earlier than it had scheduled. “2013 was a transitional year and a transformational year for Oasis,” said Thomas Nusz, CEO.

In 2013, Oasis completed four key accomplishments: First, the company completed 136 gross operated wells, eight more than it had originally budgeted for the year, and it also drove down well costs from $8.4 million to $7.5 million. Second, Oasis grew its annual production by 51 percent. Third, net acreage was increased by 54 percent, and fourth, the Houston-based exploration and production firm expanded its drilling inventory with tighter downspacing.

This year, according to Taylor Reid, company president, Oasis will focus on four areas: inventory acceleration; sub-surface well density work; surface pad operations; cost control and well performance. With acquisitions and well density or formation testing nearly complete, the company is now looking to embark on a major high-density, infill program. “In 2014, we expect to spud 90 percent of our wells from multiwell pads,” Reid said. On average, the company will drill roughly 10 wells per spacing unit on its 403 drilling spacing units (DSUs).

Oasis has grouped its DSUs into three categories. The first category, or bucket, Reid said, will feature 15 or more wells per DSU. The second will feature 10 wells per DSU, and the third will include seven wells per DSU. None of the DSUs, at this time, will include the third bench of the Three Forks formation. There has been testing on the lower bench of the Three Forks, however, through core and log analysis on seven wells. Current analysis shows that Bakken wells are yielding an average of 600 bopd and Three Forks wells are yielding 400 bopd.

Roughly 75 percent of the company’s produced water is now going into Oasis operated disposal wells, 50 percent of which is being transported by gathering lines. In 2014, between 15 and 20 slickwater frack jobs will be performed. Overall, Oasis is completing more wells than it ever has per year, all at a lower cost than it ever has. “We are continuing to find ways to improve economics by driving down costs in the basin, lowering well costs 22 percent year over year,” Reid said.