Previous Statements by OAS
» Oasis Petroleum's CEO Discusses Q2 2011 Results - Earnings Call Transcript
» Oasis Petroleum's CEO Discusses Q1 2011 Results - Earnings Call Transcript
» Oasis Petroleum CEO Discusses Q4 2010 Results - Earnings Call Transcript
» Oasis Petroleum CEO Discusses Q3 2010 Results - Earnings Call Transcript
Those risks include among others matters that we have described in our earnings release as well as in our filings with the Securities & Exchange Commission including our annual report on Form 10-K and our quarterly reports on Form 10-Q. We disclaim any obligation to update these forward looking statements.Please note that we expect to file our third quarter 10-Q tomorrow. During this conference call, we will also make references to adjusted EBITDA which is a non-GAAP financial measure. Reconciliations to adjusted EBITDA to the applicable GAAP measures can be found in our earnings release or on our website. I will now turn the call over to Tommy. Thomas Nusz Good morning and thank you for joining us this morning to discuss our third quarter financial results, recent operational activity and our outlook for the rest of the year. I’ll begin with an operational update outlook and then I’ll turn it back over to Michael to cover financial highlights. We had a great quarter coming out the heels of two tough quarters that were largely influenced by weather. The 47% production increase quarter-over-quarter is a good indication that operations are getting back up to speed. As we announced in late October, we continue to grow production and our operational reports have us around 14,300 BOE per day for the full month of October. Included in that most recent production, growth is about two million cubic feet per day of net incremental natural gas production above the 3Q average of 2.45 million cubic feet per day which we attribute to new wells being connected to our gas infrastructure that we’ll discuss more in a moment. The team did a great job ramping up production in the third quarter to get us back on track operationally. Although we have the obvious weather related issues in the first half of the year, we have made some important strides this year in setting up our asset base for the most optimal cost efficient development going forward. We have significantly de-risked our acreage position proven the impact of 36 stage completions and have begun understanding in the full potential of the Three Forks formation.
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. Read the rest of this transcript for free on seekingalpha.com