For your conditions, an extra 2 coats of oil should be adequate.
The sanding should be done before the 1st coat of oil is applied, this is to expose the willow for oiling. Then apply the 1st coat of oil and leave to settle over night lying face up. You can knock in the bat the next day. Apply the 2nd coat of oil the next night and leave to settle again overnight.
The most important areas to knock in are the edges and the toe area of the face. These are the most vulnerable areas of the bat. Start knocking in softly and gradually get harder the longer you knock these areas in. The edges need to be rounded by the knocking in process. Once rounded these edges will be hard enough to not dent too much when you hit a new or harder ball directly on the edge. Directly on the edge is any shot at a 45 deg angle to the face of the bat. You do not need to knock in the flat part of the edges as this is an area that should be directly hitting the ball in any case.
The face of the bat does need to be knocked in initially, but will not require as much work as the toe and edges as the middle will get knocked in the more the bat is used in practice. So any seam marks on the face of the bat will disappear as the rest of the face is knocked in with play.
Top quality bats are not pressed as much nowadays due to the performance the willow can offer, but if you want the bat to last you for a longer period it is advisable to knock the bat in over a period of 2 weeks before being played with against new balls in a match or nets.
If you do not feel confident that the bat is ready for new balls, then continue to knock the bat in until you are confident in the bat.