I have a similar laptop but my GPU is a 750M, which is slightly better. You should be able to run Oblivion fine at max settings without mods. Start adding mods and you should still be able to run Oblivion pretty well, and you will probably hit the limits of the old 32 bit OBlivion engine before you hit the limits of your hardware. It is an 8 year old game so your laptop is way more horsepower than the game was designed for. I also run Oblivion on a desktop with a 780ti and it only runs marginally better than on the laptop with the same mod load order. Oblivion was not designed to run on a modern OS or processor and as a result, better hardware really does not help much. But I digress.
Oblivion generally cannot recognize any modern graphics card, so that's pretty normal. Just set your graphics settings manually either in the launcher or in the options menu in game (which will require a reboot). You should be able to run Oblivion just fine in 1980 by 1080. That's what I run it on using my Windows 8.1 Lenovo laptop (model y400).