Oasis Petroleum CEO Discusses Q3 2011 Results - Earnings Call Transcript

We’ve added two additional rigs in October takings us to nine operated rigs and we are ramping up our activity as planned going into 2012. So we believe 2012 will be an even better year because of the actions that we’ve taken during the course of this year.

We continue to make progress delineating and securing our acreage position as well as consolidating in our core blocks. Counting our core de-risked acreage, which across the basin is about 250,000 to 260,000 net acres, we have an inventory of about 1,500 remaining operated locations and 2,400 total gross locations.

On our nine rig program, that equates to about 17 years of inventory. As we ramp up to 10 to 12 rigs depending on the efficiency and market conditions, we would envision being able to do about 120 gross operated wells per year. So at the end of 2012, we’ll have about 1,400 remaining locations and approximately 12 years of inventory.

Remember, when we talked about our inventory in our de-risked acreage, this is the acreage that’s in the heart of the play and excludes any fringy stuff. All of the sub service mapping indicates that these 250,000 to 260,000 net acres look to be within our tight curve ranges.

Our team continues to upgrade our land position increasing acreage in our core de-risked operated areas and dropping acres in geologically challenged areas. We continue to focus on increasing our working interest in our operative blocks so that each gross operated well that we bring on to production has more of an impact on our overall net production.

Additionally, we estimate that this year’s drilling program, we currently have approximately 160,000 net acres held by production. So a little bit ahead of where we expected to be coming into the year and a function of the great job our land group has done consolidated acres in our core drill blocks.

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