November 6, 2013 / 10:06 PM / in 4 years

UPDATE 1-New wells help Oasis Petroleum profit beat Street

By Ernest Scheyder

Nov 6 (Reuters) - Oasis Petroleum Inc, which drills for oil in North Dakota’s Bakken shale field, posted a better-than-expected quarterly profit on Wednesday, helped largely by new wells and a rise in production.

The company posted third-quarter net income of $54.5 million, or 59 cents per share, compared with $18.3 million, or 20 cents per share, in the year-ago period.

Excluding a loss on hedging for crude oil and natural gas prices and other one-time items, Oasis earned 80 cents per share.

By that measure, analysts expected earnings of 75 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 65 percent to $305.49 million. Analysts expected revenue of $287.9 million.

Production rose 10 percent to 33,064 barrels of oil equivalent per day (boe/d). Oasis completed 28 net operated wells during the quarter, with 253 net operated wells at the end of the quarter. The company said it cut its well completion cost to $8 million, below the industry average.

In September, Oasis bought roughly 161,000 net acres of leases in North Dakota from Magnum Hunter Resources Corp and three other buyers for a total of $1.52 billion, boosting its production by nearly 33 percent.

Shares of Houston-based Oasis rose 1.2 percent to $53.16 in after-hours trading. The stock has gained 65 percent so far this year.

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