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Saturday, September 6, 2014

Data Points From Oasis Most Recent Presentation - September 6, 2014

Link here.

These data points taken from the August, 2014, presentation.

The high points for me, from this presentation as well as others:
  • the wells are coming down in cost, but will likely rise again going forward due to new completion techniques
  • new completion techniques: high volume proppant and SlickWater
  • high volume proppant and SlickWater will add $1.5 million to 2.0 million+ to complete a well
  • additional completion costs will be offset by lower drilling costs (but probably not by much)
  • high volume proppant and SlickWater raising EUR curves by 35% (this number seems consistent among three operators) 
  • with two dedicated frack spreads, Oasis still completes less than 40% of their own wells with their own folks
  • in future earnings conference calls, analysts need to be asking about the cost of shipping proppant to the Bakken
I doubt much has changed from earlier presentations, but I have a few minutes before I leave for soccer.

Random data points (some numbers rounded).

Bakken (Montana/ND)
  • 505,960 net acres
  • 17 years of inventory
  • 2Q14 production: 44K boepd
  • 3Q14: 47 - 49K boepd
  • proved reserves: 220 mmboe/ PV-10 of $5.2 billion
  • West Williston : 362,000 net acres
  • East Nesson: 145,000 net acres
  • highest working interest: 68% average WI
Plans to advance/expand infrastructure development
  • double Oasis Well Services
  • grow Oasis Midstream Services
Operations (2014)
  • 16 rigs
  • further TFS delineation
  • loe: $8.50 - $10.00/boe
  • mg&t: $1.20 - $1.60/boe
Rig allocation
  • Montana: 2
  • West Williston: 8
  • East Nesson: 6
Well completion costs
  • 2012: $9.7 million
  • 4Q13: $7.9 million
  • 1H14: $7.6 million
EURs
  • vary across the Bakken: 450K boe to 750K boe
  • 35% production uplift seen using SlickWater in Montana (Hebron)
Very early in TFS delineation
  • the economic boundary of the TFS is expanding (slide 10); it's possible the Cottonwood field will benefit (TF2 and TF3)
Slickwater:
  • 1st TFS well produced 37% better than comparable well
  • 1st Montana well produced 35% better than Montana type curve
Frack spreads
  • 2nd frack spread at 100% utilization as of August, 2014
  • 2 spreads will complete up to 40% of Oasis completions
  • OWS first spread has returned 2.8x the cash invested into business since inception

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