Saturday, December 3, 2016

Oasis Petroleum -- November, 2016 Presentation

This is a very, very impressive presentation. My recommendation: skip my post and go directly to the presentation.

Oasis: only "play"is the Williston Basin
  • 485,000 net acres
  • pending: another 55,000 net acres; to close December 1, 2016 (see deals at sidebar at the right or go direct to this post
  • with acquisition, I believe Oasis is now the #2 operator in the Bakken based on net acreage, surpassing Whiting by just a bit; CLR remains out front by a large margin
  • 91% held by production
  • 97% operated
  • 395 drilling units
  • ~ 25 years of drilling activity
  • more than 1,300 locations are economic at $40
EURs -- look at this: Whiting says the same thing --
  • 1.55 million boe EUR in area around Watford City (Wild Basin area)
  • the pending acquisition includes a fair amount of acreage in the Wild Basin rarea
  • this is even more amazing: the 1.55 million boe EUR is new; but the previous EUR was 1.2 million boe; these are incredible EURs
  • LOE down to $7.00/boe; was over $10/boe as recently as 2014
  • bringing well costs down to $5.2 million; Slickwater wells
  • 55,000 acres; a bolt-on acquisition
  • bolt-on means that the new acreage abuts producing acreage
  • will ad 34 operated drilling units
  • will result in a 25% increase in OAS core inventory position
Average spud to rig release
  • 2014: 22 days
  • 2016: 13 days
  • about 80 DUCs right now
  • "highly economic" at current strip (~ $3.5 million completion cost)
  • ~ 80% of DUCs in core  
EUR Curves

These curves are simply staggering.

Gathering system: pipeline and CBR:

Expanding takeaway capacity out of the Williston Basin:

  • Note: pay particular attention to the "Guernsey." Previously discussed in light of the DAPL.

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