Oasis Petroleum Inc., Houston, (NYSE: OAS) has acquired properties targeting the Williston Basin in Montana from an undisclosed seller for $49.9 million in cash.
The deal value was originally set at US$48 million and was increased due to closing adjustments.
The assets include approximately 16,700 net acres of land in Roosevelt County. Production is approximately 300 barrels of oil equivalent per day.
Oasis is operator and expects to drill and complete future wells consistent with completion practices used in other operated areas and expects estimated ultimate recoveries within the current ranges of the West Williston. In order to hold acreage in this block, the company plans to run one operated rig continuously until such acreage is held.
The deal was funded with cash in the balance sheets. The effective date is Aug. 1.
Madison Williams analyst Andrew Coleman estimates Oasis paid $2,988 per acre, or $166,000 per flowing barrel equivalent, "less than the $300,000 per BOE per day at which Oasis shares currently trade."
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