Oasis Notes Drilling Activities in Williston Basin
Oasis provided an update on its operations and the impact of weather conditions across the Williston Basin during the second quarter of 2011. The Company's operations have been adversely impacted by breakup from a record winter snowfall, sustained heavy rainfall, and out of the ordinary flooding throughout the second quarter. Last week, certain federal highways and various counties imposed road restrictions on heavy trucks, and Oasis had to shut-in certain wells. These unpredictable weather conditions continue to make operations difficult and the ultimate impact on the second quarter of 2011 production is not yet fully defined. As of June 6, 2011, Oasis had 24 gross operated wells waiting on completion. The Company has been able to complete 11 gross operated wells since March 31, 2011, but 5 of these wells still have not been cleaned out.
"We continue to work diligently to counteract the impact of the harsh weather," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Although we were able to grow production quarter over quarter through an unusually difficult winter, the second quarter has proved more challenging given significant shut-in time on producing wells due to the late winter storm in early May that took down power across the Williston Basin, continued rainfall, flooding, and road restrictions. It will be difficult to maintain first quarter production levels in the second quarter. However, we have continued to move forward with our capital program and, while we have had some delays moving equipment, we don't currently expect a meaningful impact to our drilling and completion activity. We have renewed our contract with one of our pumping services providers for a 24-month term. We have now also lined up our third frac crew and anticipate that they will begin completions in July 2011. In addition, we are making progress on securing our eighth and ninth rigs for the second half of 2011. Assuming normalized conditions through the summer and fall, we expect our capital program to be on track and should be able work through our completion inventory in the second half of the year."