This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Oasis Petroleum's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Second we’ll be making progress on extensional testing in both the Middle Bakken, and Three Forks and associated well density. With that, the Middle Bakken is largely delineated across our acreage position, even up into North Cottonwood and into Montana. We will also make meaningful progress on the Three Forks this year. We commenced several in-fill and interference tasks in the second quarter to determine the optimal number of wells per horizon, on each spacing unit and to test communication between laterals.

Third, operations optimization, that's optimizing services, including the start-up of Oasis well services, and continuing to evaluate different completion techniques in each of our operated regions to optimize well costs without degrading recoveries, and in some cases, even improving recoveries.

And fourth, infrastructure development. We’re spending a lot of time on infrastructure planning and development to bring down unit costs, as shown in our financial results and improving operating run time and maximizing revenues on both oil and gas. We’re also beginning to realize cost reductions for both drilling and completions. We’re expecting to knock off approximately 10% from current well costs by the end of this year. And with the additional savings from pad development, we’ll be able to have an even larger impact on capital costs during 2013.

With the second quarter, we produced a record average of 20,353 BOEs per day, an increase of 2,720 BOEs per day or 15% over the first quarter of 2012, and we were able to outperform our guided production range of 18,000 to 19,500 BOEs per day for the second quarter. On total completions, we initially planned to complete 22 to 44 wells in the quarter, a pace slightly below our first quarter. Due in part to mild weather, but in large part to our team continuing to push operational improvements, we were able to complete 26 gross operated wells in the quarter. These 26 gross operated wells had a 78% working interest on average compared to our budget of approximately 70%.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs