Oasis Petroleum (NYSE: OAS), an independent production company operating in Williston Basin, mainly focuses on the acquisition and development of oil and natural gas resources and has announced a deal yesterday, with Forge Energy, LLC to purchase 20,300 net acres in the Delaware Basin that is worth about $946 million. According to PR Newswire, this acquisition consists of “approximately $483 million in cash and 46 million shares of Oasis’ common stock valued at approximately $463 million as of the close of trading on December 8, 2017.” A combination of the company’s shares issued to the seller, capital markets transactions, as well as credit facility will be funded towards the acquisition.
The effective date started at the beginning of this month and is expected to be finalized by February 2018. According to Oasis’ Chairman and Chief Executive Officer, Tommy Nusz, this deal is expected to “double Oasis’ core net inventory and represents a unique opportunity to acquire a highly complementary asset to Oasis’ premier Williston Basin acreage that positions the Company to further capitalize on its operational strengths.”
In addition, Oasis has announced an underwritten public offering of 32,000,000 shares of common stock. The company aims to allow underwriters a 30-day option to buy up to 4,800,000 additional shares of common stock. By using these net proceeds from the offering, a portion of the acquisition with Forge Energy, LLC can be funded where Goldman Sachs & Co. LLC as well as Credit Suisse Securities (USA) LLC are joint book running managers.