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Wednesday, June 15, 2011

Oasis With New Presentation -- Drilling Has Just Begun -- Pure Bakken Play, North Dakota, USA

Link here.

The drilling has just begun.
Oasis reports drilling 5.5 net wells in 1Q11. Oasis has identified 1,303 drilling locations (772 operated locations). They've identified 1,100 additional gross drilling locations from the TFS formation. Getting from 6 wells/quarter to 3,000 wells will take awhile, to say the least. And this is just one Bakken company.
Seven operated rigs. Working on 8th and 9th rig for 2H11.

West Williston area: three wells per formation (Middle Bakken and Three Forks) in each spacing unit yields 10 to 15 percent of the (original) oil in place (OOIP)

Three dedicated frac crews (ratio rigs to fracking crews: 7:3; with 9 rigs, 3:1). How bad is the fracking backlog? In West Williston, Oasis has 35 producing wells; Oasis has another 20 wells waiting to be completed (fracked)

Wells: $9 million for 36-stage completion.

North Dakota is aiming for 1.5 million bopd starting in 2H14, plateauing out through 2H16; currently about 350,000 bopd (1.5 million: 0.350 million --> 4.3 times greater)

For investors, Oasis has hedged their oil sales with 2-way collar contracts: floors $60 - $80; ceilings $80 - $123. Hard to sort out "true" cost of production/bbl, but appears to be about $25.

 
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4 comments:

  1. AnonymousJune 16, 2011 at 6:19 AM

    I wonder how much of the acreage for Oasis is located in the Williams County area and if Oasis plans future participation with G-3 in this area. Seems like G-3 has been off the drilling permit radar lately.

    ReplyDelete
  2. Bruce OksolJune 16, 2011 at 6:35 AM

    I can't speak to partnership regarding G-3, but the corporate presentation has a great map that shows where all of the Oasis acreage is. I was surprised to see how much was in Williams Cointy. I still think it was Oasis buying Fidelity acreage that was the catalyst that moved Oasis to where it is now.

    ReplyDelete
  3. AnonymousJune 16, 2011 at 4:21 PM

    is there any way to download the Oasis presentation if you are not an Oasis investor? This link seems like it can only be accessed by Oasis investors.

    Thanks,
    Steve

    ReplyDelete
  4. Bruce OksolJune 16, 2011 at 6:23 PM

    I just checked the link -- it's good.

    To access the link, you do need to provide a valid e-mail address but you don't have to be an investor.

    I currently hold no shares in OAS and had no trouble accessing on either my laptop or the iPad.

    ReplyDelete

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