Oasis CEO says Bakken still early innings
When Taylor Reid, president and Chief Operating Officer of Bakken pure-play operator Oasis Petroleum Inc., is asked how long the oil production and development will happen in the Williston Basin, he responds with a baseball analogy. The Bakken is still “in the early innings,” Reid said. For Oasis, it appears the game is just getting good. “2013 was a really good year for us,” he said.
Based on its overall operations, Reid believes Oasis is as good, or better, than any operator in the Bakken. The company has in place large contiguous blocks of acreage and a large inventory ready for future production. The inventory allows Oasis to continue its fast pace. At the start of 2013, Oasis was operating 9 drilling rigs, but by the end of the year, its rig count increased to 14. Currently, Oasis is running 16 drilling rigs. Because of Oasis’ position in the core of the Williston Basin, Reid believes it will have the opportunity to drill more wells.
Like other large operators, the company has performed, or been monitoring, testing to determine appropriate downspacing without overcapitalizing. Below the Bakken, Reid said Oasis is excited about what it is seeing deeper.
In 2014, 90 percent of the company’s new wells will be drilled on multi-well pads, a general industry trend. One of the moves that Oasis has made that Reid said was unorthodox, was the formation of its own well services business. The company’s well services business may have been out of the norm, but the reasons for it are clear, he said. Oasis is able to control costs on the single largest well cost: completions. It is also able to have more control over the dynamics associated with completions and production cycles. On a typical well, the company estimates savings per well range from $500,000 to $700,000. “It is a good example of how we find value,” Reid said. As a testament to the value in its own frack spread, Reid said Oasis plans to bring a second frack spread online in 2014. Reid spoke during the DUG Bakken and Niobrara Conference held in Denver last week. The event was put on by Hart Energy.