Business/economics

Shale Producers Exchange Williston Basin Position in $745-Million Deal

Oasis Petroleum announced this week that it is acquiring the position from Diamondback Energy.

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Source: Getty Images.

Shale producer Oasis Petroleum said Monday that it is acquiring Williston Basin assets from Diamondback Energy in a cash deal valued at $745 million.

Oasis will take on about 17,700 B/D in existing oil production on 95,000 net acres of leases at a cost of nearly $28,000 per BOED, the company said in its announcement. The acquisition’s production will add to the operator’s first-quarter base of about 36,800 B/D of oil, bringing pro forma production to an estimated 54,500 B/D.

“This exciting acquisition is a great example of how Oasis is addressing the needs of tomorrow, by taking action in our new industry paradigm, today,” Danny Brown, Oasis' CEO, said in a statement.

“This acquisition materially enhances scale in our core Bakken asset at an attractive valuation, with the purchase price almost entirely based on PDP and very little value attributed to the development of the top-tier inventory or potential synergies,” he continued.

On a pro forma basis, Oasis will hold 497,000 acres in the Williston Basin of North Dakota, the home basin of the Bakken Shale and Three Forks Shale.

Midland-based Diamondback acquired the acreage through its $2.2-billion acquisition of QEP Resources that closed in March. Diamondback said adjusting for the sale, it expects 2021 production to be about 350,000 to 360,000 BOED.