Please ensure Javascript is enabled for purposes of website accessibility

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

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.


Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Oasis Petroleum Inc. Stock Quote
Oasis Petroleum Inc.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.