Oasis Petroleum Inc., Houston, plans to direct 65-70% of its 2021 capital to the Williston basin and 30-35% of its capital to the Permian basin. About 80-85% of its exploration and production (E&P) and other capex is to be invested in drilling and completions activities, including completing 23-25 gross operated wells with a working interest of 86% in the Williston basin, and completing 6-8 gross operated wells with a working interest of 100% in the Permian basin.
E&P capex for 2021 is expected to be $225-235 million. Additionally, Oasis's portion of midstream is expected to be $6-8 million. First-quarter 2021 capex is expected to be roughly 20% of full-year guidance.
First-quarter 2021 total volumes are expected to be 54,000-57,000 boe/d (65% oil cut), impacted by deferred activity and weather impacts. Full year volumes are expected to be 57,000-60,000 boe/d (66% oil cut).
Fourth-quarter 2021 volumes are expected be 62,000-65,000 boe/d (67% oil cut), as normalized capital activity supports production volumes, the company said.
Full-year 2022 volumes are expected to be flat to slightly higher with similar E&P CapEx levels as 2021.
The company said 74% of expected 2021 oil production is hedged at an average swap price of $42/bbl WTI, and that it has secured alternative outlets for about one-third of its expected April through September Williston crude to mitigate risk associated with any potential Dakota Access Pipeline (DAPL) disruption.
For fourth-quarter 2020, the company produced 59,200 boe/d, with oil volumes at 38,600 b/d of oil. E&P capex for the quarter was $12.6-16.6 million, about 61-71% below guidance. Full-year 2020 E&P capex was $207-211 million, some 64% below the original budget.
