Oasis Petroleum Inc. Announces Select Operational Results and Preliminary Financial Results for 2012 and its 2013 Outlook

  Oasis Petroleum Inc. Announces Select Operational Results and Preliminary
               Financial Results for 2012 and its 2013 Outlook

PR Newswire

HOUSTON, Jan. 31, 2013

HOUSTON, Jan. 31, 2013 /PRNewswire/ --Oasis Petroleum Inc. (NYSE: OAS)
("Oasis" or the "Company") today announced 2012 operational results and
estimated net proved reserves, updated its 2012 financial outlook, and
provided its 2013 outlook.

Achievements in 2012 include:

  oIncreased average daily production to 22,469 barrels of oil equivalent per
    day ("Boepd") in 2012, up from 10,724 Boepd in 2011 for an increase of
  oCompleted and placed on production 117 gross (93.3 net) operated wells
    during 2012, including 31 gross (25.4 net) operated wells in the fourth
    quarter of 2012.
  oIncreased total estimated net proved oil and natural gas reserves at
    December 31, 2012 to 143.3 million barrels of oil equivalent ("MMBoe"), an
    82% increase over year-end 2011 estimated net proved reserves.
    Approximately 89% of estimated net proved reserves at year-end 2012
    consisted of oil and 49% were classified asdeveloped.
  oContinued to high-grade and growthe Company'sleasehold position to
    335,383 total net acres in the Williston Basin, primarily targeting the
    Bakken and Three Forks ("TFS") formations. The Company increased its
    operated drill blocks by 37 through acreage additions and trades during
    2012. In addition, Oasis has 264,595 net acres held-by-production as of
    December 31, 2012.
  oSuccessfully launched and utilized Oasis Well Services ("OWS"), the
    Company's internal frac service provider on its operated wells.
  oReduced well costs by 16% from $10.5 million in the first half of 2012 to
    $8.8 million as of year-end 2012, while maintaining similar estimated
    ultimate recoveries ("EURs") on wells.
  oEnded the year with $239 million of cash, cash equivalents, and short-term
    investments and had total liquidity of $987 million, including the
    Company's revolving credit facility ($750 million borrowing base).

"We more than doubled production for the second straight year, growing 2012
production to 22,469 barrels of oil equivalent per day," said Thomas B. Nusz,
Oasis' Chairman and Chief Executive Officer. "The team made significant
strides during 2012, laying a firm foundation for continued growth into 2013.
We were able to attract the human resources, both in upstream and in OWS,who
are a key strength that drives the success of Oasis. As we transition into
full pad development during 2013, we believe we have the right team in place
to plan and execute successfully, especially given the complexities associated
with this type of activity."

Highlightsof 2013 Plan:

  oIncreasing average daily production to a range of 30,000 to 34,000 Boepd
    in 2013.
  o$1,020 million total capital expenditure ("CapEx") budget including $897
    million for drilling and completion CapEx.
  oCompleting approximately 128 gross (92.5 net) operated and 10.9 net
    non-operated wells.
  oFurther testing and delineating of the TFS, including lower TFS benches,
    across Oasis' acreage position.
  oPerforming numerous infill density tests, including testing the equivalent
    of 6 wells per formation in a single spacing unit.
  oDrilling approximately 60-70% of its wells on pads.
  oImproving capital efficiency without reducing EURs from wells. Oasis
    expects to spend approximately $110 million less ondrilling and
    completion CapEx in 2013 compared to 2012 while completing a similar
    number of net wells year-over-year.

Operational Results for Bakken and TFS
Oasis completed and brought on production 117 gross (93.3 net) operated wells
in the Williston Basin in 2012, including 31 gross (25.4 net) operated wells
during the fourth quarter of 2012. The following table describes the
Company's producing wells by project area in the Williston Basin as of
December 31, 2012:

                   Bakken / Three Forks Wells
                   West Williston     East Nesson     Sanish       Williston
Producing wells   Gross    Net       Gross   Net     Gross  Net   Gross Net
Producing on or
before 12/31/11:
Operated           73       59.2      41.0    32.7    0      0.0   114   91.9
Non-Operated       37       2.6       51      4.4     174    13.1  262   20.1
Total Producing    110      61.8      92      37.1    174    13.1  376   112.0
Producing on or
before 9/30/12:
Operated           138      110.3     62.0    51.6    0      0.0   200   161.9
Non-Operated       48       4.0       58      4.8     236    18.4  342   27.2
Total Producing    186      114.3     120     56.4    236    18.4  542   189.1
started in Q4
Operated           18       14.2      12      10.1    0      0.0   30    24.3
Non-Operated       0        0.3       13      1.0     21     1.5   34    2.8
Total Producing    18       14.5      25      11.1    21     1.5   64    27.1
Producing wells on
or before
Operated           156      124.5     74      61.7    0      0.0   230   186.2
Non-Operated       48       4.3       71      5.8     257    19.9  376   30.0
Total Producing    204      128.8     145     67.5    257    19.9  606   216.2
(1) Total producing wells on 12/31/12 has been adjusted for the Rebne well (1
gross and 1.0 net) in St. Croix that is in the process of being shut-in.

As of December 31, 2012, the Company had 21 gross operated wells awaiting
completion and 11 gross operated wells in the process of drilling. Two of the
Company's nine rigs were each drilling two wells on pads on December 31,

Preliminary Fiscal Year 2012 Results
Oasis is providing preliminary unaudited financial results for fiscal year
2012. Oasis has prepared the summary preliminary data below based on the most
current information available to management. Its normal closing and financial
reporting processes with respect to the preliminary financial data have not
been fully completed. As a result, its actual financial results could be
different from this preliminary financial data, and any differences could be

Average daily production by project area is listed in the following table:

               Average Daily Production for the Quarter Ended (Boepd)
               Dec 31, 2012      Sep 30, 2012     Change    % Change
West Williston 18,492            16,605           1,887     11.4%
East Nesson    6,410             5,336            1,074     20.1%
Sanish         2,654             2,316            338       14.6%
Total          27,556            24,257           3,299     13.6%

Average daily production in the fourth quarter and full year for oil and gas
is included in the following table:

                     Average Daily Production for Period
                     4Q 12     FY 12     4Q 11    FY 11
Oil (Bopd)           25,009    20,581    14,402   10,226
Natural Gas (MMcfpd) 15.3      11.3      5.0      3.0
Total (Boepd)        27,556    22,469    15,243   10,724

"At the end of 2012, Oasis had approximately 90% of its wells connected to
natural gas infrastructure," added Taylor Reid, Oasis' Executive Vice
President and Chief Operating Officer. "Additionally, we had approximately
60% of our gross operated oil volumesin our third party oil gathering system,
which provides access to numerous rail and pipeline delivery points. Because
of the flexibility that this system provides, we were able to shift volumes
from approximately 50% rail and 50% pipeline earlier this year to
approximately 80% rail and 20% pipeline in the fourth quarter of 2012. With
the shift, we delivered our best oil differentials to date during the quarter
at less than 2.5% versus WTI."

The following table provides the Company's estimates for oil prices and
differentials and natural gas prices for the fourth quarter of 2012 and for
the full year 2012:

                        Expected Prices and Oil Differentials
Metric                  4Q 12                FY 12
WTI (NYMEX)             $88.21               $93.39
Realized price for oil  $86.00 - $86.90      $85.00 - $85.25
Oil differential        1.5 - 2.5%         8.7 - 9.0%
Natural gas ($ per mcf) $6.10 - $6.40      $6.45 - $6.55

The following table provides Oasis' preliminary estimates for fiscal year 2012

                                             FY 2012
Metric                                       August Guidance  Updated Guidance
LOE ($/Boe)                                  $5.75  -  $7.00  $6.65  -  $6.75
Marketing, transportation, and gathering     $1.00  -  $1.50  $1.00  -  $1.10
($/Boe) ^(1)
G&A ($ in millions)                          $55    -  $62    $56.9  -  $57.8
Production taxes (% of E&P Revenue)          9.5%   -  10.5%  9.35%  -  9.45%

(1) Excludes bulk purchase of oil of $1.4 million in the first quarter of 2012
and the effect of non-cash market valuation adjustments on pipeline

Oasis is estimating CapEx related to drilling and completion activities to
total between $1,005 million and $1,015 million for 2012. The Company expects
total CapEx for the full year 2012 to be between $1,145 million and $1,155
million. The incremental spending above the Company's August 2012 target was
primarily due to increased working interests in operated wells and drilling
and completion activity that exceeded the plan. The Company completed an
additional 7.1 net operated and non-operated wells in 2012 compared to its
plan. On an operated basis, Oasis completed 5 more gross operated wells than
budgeted in 2012, due to the Company's decision to utilize available frac
capacity in early December 2012, when the Williston Basin was experiencing
seasonally mild weather. CapEx reductions associated with OWS, which are
included in the CapEx numbers above, are expected to range between $17 and $18
million during 2012, which exceeded the Company's expectations.

As of December 31, 2012, the Company had cash, cash equivalents, and
short-term investments of $239 million. As of December 31, 2012, Oasis had no
borrowings under its revolving credit facility ($750 million borrowing base),
although it had $2.2 million of letters of credit that reduces the borrowing
capacity of the revolving credit facility. Overall, Oasis has liquidity of
approximately $987 million.

Leasehold Position and Drilling Locations
Oasis built its leasehold position in its West Williston, East Nesson and
Sanish project areas primarily through acquisitions and development
activities.As of December 31, 2012, the Companyhad 335,383 net acres in the
Williston Basin. The following table presents net acreage as of December31,
2012 and 2011:

               Dec 31, 2012  Dec 31, 2011  Change  % Change
West Williston 208,062       201,265       6,797   3%
East Nesson    118,943       97,756        21,187  22%
Sanish         8,378         8,409         (31)    0%
Total          335,383       307,430       27,953  9%

"The land team, working closely with our asset management team, has done an
extraordinary job high-grading and adding to our core acreage position in the
Williston Basin," said Mr. Reid. "We now have approximately 305,000 net acres
that we believe are core based on prospectivity for the Middle Bakken, and we
include about 110,000 (36% of core net acres) of those net acres in our
primary inventory for the TFS. Additionally, our significant investment in
drilling activities has enabled Oasis to increase its acreage that is held by
production to approximately 264,595 as of year-end 2012."

Based on results to date and the delineation of the Bakken formation
throughout much of its acreage, Oasis believes it has 1,632 gross (730.9 net)
remaining primary drilling locations. This drilling inventory is based on the
assumption that there are 280 substantially delineated and economically viable
operated spacing units across the Company's acreage position. Identified
gross and net drilling locations are based on primarily 1,280 acre spacing
units. For the primary inventory, each spacing unit assumes three Bakken
wells (excluding wells previously drilled) and in certain areas where the
Company has conclusive historical production data, such as in Indian Hills and
in parts of South Cottonwood, each spacing unit assumes four Bakken and
threeTFSwells (excluding wells previously drilled). Additionally, the
Company assumes the operators' identified plan for development in the Sanish
project area. 

In addition to its primary drilling locations, the Company believes it has
additional remaining potential drilling locations including a fourth Bakken
well and up to four TFSwells per spacing unit in certain areas.

The following table presents remaining drilling locations for each project
area as of December31, 2012:

            Remaining Primary   Remaining Potential        Remaining Drilling
            Drilling Locations  Drilling Locations         Locations
            Gross     Net       Gross           Net        Gross    Net
West        834       394.4     1,159           582.4      1,993    976.8
East Nesson 644       326.8     354             213.7      998      540.5
Sanish      154       9.7       26              5.3        180      15.0
Total       1,632     730.9     1,539           801.4      3,171    1,532.3

Estimated Net Proved Reserves
Oasis' estimated net proved oil and natural gas reserves at December 31, 2012
were 143.3 MMBoe, a 82% increase over year-end 2011 estimated net proved
reserves, and consisted of 128.1 million barrels ("MMBbls") of oil and 91.5
billion cubic feet ("Bcf") of natural gas utilizing an average WTI oil price
of $94.68 per barrel and an average natural gas price of $2.75 per MMBtu.
These prices were adjusted by lease for quality, transportation fees,
geographical differentials, marketing bonuses or deductions and other factors
affecting the price received at the wellhead. At year-end 2012, 89% of the
Company's estimated net reservesconsisted ofoil.

The table below summarizes the Company's estimated net proved reserves and
related PV-10 at December31, 2012 and 2011 for each project area. The reserve
estimates at December31, 2012 and 2011 presented in the table below are based
on reports prepared by DeGolyer and MacNaughton, independent reserve
engineers. In preparing its reports, DeGolyer and MacNaughton evaluated
properties representing all of the Company's PV-10 at December31, 2012 and
2011 under the current SEC rules. The information in the following table does
not give any effect to or reflect Oasis' commodity hedges.

               December 31, 2012                       December 31, 2011
                                        PV-10          Proved    PV-10
               Proved Reserves (MMBoe)  (in millions)  Reserves  (in millions)
                                        ^(1)           (MMBoe)   ^(1)
West Williston 94.6                     $2,066.6       51.6      $1,242.6
East Nesson    41.4                     975.6          21.1      479.1
Sanish         7.3                      202.1          6         182.0
Total          143.3                    $3,244.3       78.7      $1,903.7

(1) PV-10 is a non-GAAP financial measure and generally differs from
Standardized Measure, the most directly comparable GAAP financial measure,
because it does not include the effect of income taxes on discounted future
net cash flows.Average WTI oil price was $94.68 per barrel in 2012 and $96.23
per barrel in 2011.

Estimated net proved developed reserves increased from 35.8 MMBoe at year-end
2011 to 70.0 MMBoe at year-end 2012. The PV-10 of the Company's estimated net
proved developed reserves increased from $1,149 million at year-end 2011 to
$2,188 million at year-end 2012.

At December 31, 2012, Oasis had approximately 73.3MMBoe of estimated net
proved undeveloped reserves as compared to 42.9 MMBoe at December 31, 2011.
All of the Company's estimated net proved undeveloped reserves at December 31,
2012 are expected to be developed within the next five years.

The following table summarizes the changes in Oasis' estimated net proved
reserves during 2012:

As of December 31, 2011                     78.7
Revision of previous estimates              (2.0)
Extensions, discoveries and other additions 73.9
Sales of reserves in place                  0.0
Purchases of reserves in place              1.0
Production                                  (8.2)
As of December 31, 2012                     143.3
Total estimated proved developed reserves   70.0
Percent proved developed                    49%

Outlook for 2013
The Company's 2013 CapEx budget totals $1,020 million, which consists of $996
million for Exploration and Production ("E&P") CapEx and $24 million for other
CapEx, including OWS and non-E&P capital.

E&P CapEx primarily consists of:

  o$897 million of drilling and completion CapEx for operated and
    non-operated wells (including expected savings from services provided by
  o$43 million for constructing infrastructure to support production in
    Oasis' core project areas, primarily related to salt water disposal
  o$25 million for maintaining and expanding the Company's leasehold
  o$21 million for facilities and other miscellaneous CapEx; and
  o$10 million for micro-seismic work, purchase of seismic data and other
    test work.

Other CapEx consists of the following:

  o$14 million for OWS; and
  o$10 million for non-E&P capital, including items such as administrative
    capital, and capitalized interest.

The Company expects the wells completed by area in 2013 to be:

Wells Completed by   Gross Operated  Net Operated  Net Non-operated  Total Net
Area                                                                 Wells
West Williston       75              55.3          2.9               58.2
East Nesson          53              37.2          2.3               39.5
Sanish               -               -             5.8               5.8
Total                128             92.5          10.9              103.4

The following table provides Oasis' forward-looking guidance for 2013:

Metric                                                 2013 Ranges
Production (Boepd)
 Full Year                                             30,000 - 34,000
 1Q 13                                                 27,000 - 29,000
Full Year Financial Metrics
 LOE ($/Boe)                                           $5.75  - $7.00
 Marketing, transportation, and gathering ($/Boe) ^(1) $1.25  - $1.60
 G&A ($ in millions)                                   $75    - $85
 Production taxes (% of E&P Revenue)                   9.5%   - 11.0%

(1) Excludes the effect of non-cash market valuation adjustments on
inventory imbalances.

"Oasis is looking forward to another year of outstanding production growth
combined with improving capital efficiency," said Mr. Nusz. "Average well
costs in our budget are expected to be approximately $8.5 to $8.7 million, and
the team is continuing their work to drive well costs down even further. We
expect to complete a similar number of net wells in 2013 as we did in 2012,
with savings ofapproximately $110 million in drilling and completion CapEx.
Production growth in the first half of the year is expected to moderate due to
winter weather conditions, spring break-up, and infill operations. As we have
seen in past years, production growth will be weighted towards the back half
of the year."

Oasis is expecting to continue expansion of its pad development operations in
2013 as it expects to develop 60-70% of its wells on pads. Pad development is
anticipated to help drive down costs through efficiencies, less required
equipment and manpower and lower facilities costs. In addition, the use of
pads is expected to decrease the overall impact to the environment and to the
land owners in the Williston Basin.

As Oasis moves to pad operations,the Companyexpects to utilize a four Bakken
and three TFS well pattern in certain spacing units in Indian Hills and South
Cottonwood. Throughout the year, Oasis expects to further test infill density
across the Company's acreage position and, in some cases, test down to 400
feet spacing, which could equate to a six wells per formation per 1280 acre
spacing unit. Additionally, Oasis is expecting to evaluate the TFS through
high resolution core work throughout its acreage position in 2013.In
addition to theone well core in Indian Hills in 2012, Oasis is planning
todrill six well pilots, which willinclude cores and high resolution logsto
evaluate all benches of the TFS formation. This core work, combined with
continued infill density tests across the Company's acreage position, is
expected to provide Oasis valuable information as it continues to evolve its
full development plan to achieve the highest economics.

Hedging Activity
The Company expects to continue to layer in additional commodity derivatives
during 2013 to protect funding for its drilling program and a portion of its
existing production volumes. As of January 30, 2013, the Company had the
following outstanding commodity derivative contracts, all of which settle

                          Weighted Average Prices
Type           Remaining  Sub-Floor  Floor   Cap      Swaps   BOPD   Total
               Term                                                  Barrels
Partial Year
Put Spread     6 Months   $65.00     $95.00                   500    90,500
(No Ceiling)   (Jan-Jun)
Full Year
Swaps          12 Months                              $94.55  4,000  1,460,000
Two-Way        12 Months             $86.82  $97.75           5,500  2,007,500
Collar         (Jan-Dec)
Three-Way      12 Months  $65.92     $92.45  $111.45          6,130  2,237,450
Collar         (Jan-Dec)
Put Spread     12 Months  $71.03     $91.03                   4,870  1,777,550
(No Ceiling)   (Jan-Dec)
Total 2013 Hedges        $68.11     $90.22  $104.97                 7,573,000
(Weighted Average)
Implied total volume hedged (BOPD) for 2013                          20,748
Full Year
Swaps          12 Months                              $92.15  1,000  365,000
Three-Way      12 Months  $70.67     $90.67  $105.81          7,500  2,737,500
Collar         (Jan-Dec)
Total 2014 Hedges        $70.67     $90.67  $105.81                 3,102,500
(Weighted Average)
Implied total volume hedged (BOPD) for 2014                          8,500

Upcoming Conferences

February 5, 2013  Credit Suisse Energy Summit 2013 – Vail, CO
February 27, 2013 UBS SMID Cap One-on-One Symposium – Boston, MA
February 27, 2013 J.P.Morgan Global High Yield & Leveraged Finance Conference
                  – Miami, FL
March 1, 2013     Simmons & Company 13th Annual Energy Conference - Las Vegas,
March 5, 2013     Raymond James' 34th Annual Institutional Investors
                  Conference – Orlando, FL

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or may
occur in the future are forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained in this
press release specifically include the expectations of plans, strategies,
objectives and anticipated financial and operating results of the Company,
including the Company's drilling program, production, derivatives activities,
capital expenditure levels and other guidance included in this press release.
These statements are based on certain assumptions made by the Company based on
management's experience and perception of historical trends, current
conditions, anticipated future developments and other factors believed to be
appropriate. Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company, which may
cause actual results to differ materially from those implied or expressed by
the forward-looking statements. These include changes in oil and natural gas
prices, the timing of planned capital expenditures, availability of
acquisitions, uncertainties in estimating proved reserves and forecasting
production results, operational factors affecting the commencement or
maintenance of producing wells, the condition of the capital markets
generally, as well as the Company's ability to access them, the proximity to
and capacity of transportation facilities, and uncertainties regarding
environmental regulations or litigation and other legal or regulatory
developments affecting the Company's business and other important factors that
could cause actual results to differ materially from those projected as
described in the Company's reports filed with the SEC.

Any forward-looking statement speaks only as of the date on which such
statement is made and the Company undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable law.

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.

Oasis Petroleum Inc.
Richard Robuck, (281) 404-9600

SOURCE Oasis Petroleum Inc.

Website: http://www.oasispetroleum.com
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