Oasis Petroleum Inc. Announces the Acquisition of Approximately 55,000 Net Acres in the Williston Basin

Oasis Petroleum Inc. Announces the Acquisition of Approximately 55,000 Net Acres in the Williston Basin

On October 17, 2016, Oasis signed a purchase and sale agreement to acquire approximately 55,000 net acres and an estimated 226 gross operated drilling locations in the Williston Basin for approximately $785 million. We have internally estimated that as of December 1, 2016, the properties to be acquired will have an estimated 50.2 MMBoe of proved reserves, 63% of which are considered proved developed producing and 77% of which are oil.  The properties to be acquired are expected to produce 12,400 Boe/d in the three months ending December 31, 2016.  Oasis expects to operate approximately 75% of the properties based on proved reserves.

“This acquisition is a great opportunity to add acreage and inventory that is a natural fit with our existing core and extended core positions and will increase our gross operated drilling locations in our core acreage by approximately 25%,” said Mr. Nusz. “With our continued capital efficiency and best-in-class operations in the Williston Basin, we are well positioned to take full advantage of this complementary asset that we believe will generate substantial shareholder accretion based on our currently anticipated acquisition financing.”

The following table provides detail on key operational highlights for Oasis and the acquisition.

Oasis
Stand-Alone

Acquisition

Pro Forma
Combined

Net acreage (1)

484,745

55,000

539,745

Production (Boepd) (2)

48,509

12,400

60,909

Gross Core Op Inventory Estimate (3)

554

130

684

Net Core Op Inventory Estimate (3)

333

68

401

Total Net Core Inventory Estimate (3)

333

92

425

1)

Oasis Stand-Alone acreage is as of December 31, 2015.

2)

Oasis Stand-Alone production is based on third quarter 2016 and Acquisition production is based on projected fourth quarter 2016.

3)

Oasis Stand-Alone inventory is based on year-end 2015 counts, adjusted for wells expected to be completed in 2016.  Acquisition inventory is based on similar methodology that Oasis used at year-end 2015 on its own inventory.

The effective date for the acquisition is October 1, 2016 and the transaction is expected to close on December 1, 2016. The transaction is subject to customary closing conditions. The Purchase Agreement contains various purchase price adjustments to be calculated as of the closing date.

SOURCE:  http://oasispetroleum.investorroom.com/2016-10-18-Oasis-Petroleum-Inc-Announces-the-Acquisition-of-Approximately-55-000-Net-Acres-in-the-Williston-Basin-and-Provides-Financial-Operational-and-Guidance-Updates

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