HOUSTON, Nov. 7, 2012 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended September 30, 2012.
"The momentum of our operational success continued into the third quarter, as we again exceeded our production guidance and drove down our capital cost per well," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "The team has done a great job minimizing downtime and has continued to deliver on our completion schedule, which has allowed us to bring the total operated wells on first production to 86 for the first nine months of 2012. As production continues to grow, we now believe that the fourth quarter average daily production will range between 26.0 MBoepd and 28.0 MBoepd, and our new full-year guidance is 22.1 MBoepd to 22.6 MBoepd. Operated well costs averaged $9.0 million this quarter, including $0.3 million per well savings related to Oasis Well Services, compared to $10.5 million for the first half of the year. Even before taking into account the benefit of Oasis Well Services, our current well costs are in-line where we said we would be by year-end 2012, at an average cost of $8.8 million per well. Oasis Well Services has proven itself to be a robust value driver for Oasis on numerous fronts, including driving down well costs and increasing the efficiency and quality of our fracs. Additionally, we recently brought wells online in our Indian Hills infill pilot programs in advance of our transition to development mode, which we expect to occur in 2013."
"We have approximately 60% of our gross operated oil volumes on our third party gathering system and expect this to grow to north of 80% by mid-year 2013 as we connect our wells in East Nesson. This gathering system provides access to numerous rail and pipeline delivery points," Mr. Nusz added.
Operational and Financial Update
Average daily production for the third quarter of 2012 was 24,257 Boepd, an increase of 109% as compared to 11,583 Boepd in the third quarter of 2011. Sequential quarter-over-quarter average daily production increased 3,904 Boepd, or 19%. In the third quarter of 2012, 93% of production was from oil.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
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