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Oasis Petroleum to Acquire 161,000 Net Acres for $1.52 Billion

By Tim Brugger - Sep 5, 2013 at 4:34PM

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The oil and natural gas producer will increase its net acreage by nearly 50% via multiple transactions.

After signing four, unrelated acquisition agreements, Oasis Petroleum (OAS) will add 161,000 net acres for $1.52 billion, including the purchase of 136,000 net acres in and around its position in North Dakota in its West Williston project area for $1.45 billion, Oasis announced today.

At existing production levels, the transactions will add approximately 9,300 barrels of oil equivalent (boe) per day, bringing Oasis' total production to an estimated 43,000 boe daily, the company said. Oasis added that of the 136,000 acres in the West Williston area, 91,000 have no depth limitations, which are sometimes imposed to protect underground water supplies.

Oasis Chairman and CEO Thomas Nusz said in the company's statement that "these acquisitions add high quality acreage in the heart of the Bakken and Three Forks play, providing incremental scale to our premier position in the Williston Basin."

In addition to the West Williston project area, Oasis agreed to three transactions totaling approximately 25,000 acres in East Nesson for $65 million.

The acquisitions will bring Oasis' approximate net acres to 492,000.

The deals are expected to close in early October and are subject to customary closing conditions.

Separately, Oasis also announced its lenders, after completing their semi-annual review of its borrowing base, have extended Oasis' available credit from $1.25 billion to $1.5 billion. Oasis also added four new lenders to its bank group.

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