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

Inventory

• 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

Costs

• LOE down to $7.00/boe; was over $10/boe as recently as 2014
• bringing well costs down to $5.2 million; Slickwater wells

Acquisition

• 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

DUCs

• 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.