Saturday, August 18, 2018

Contributor At Seeking Alpha Suggests Oasis Was The Seller In The Whiting "Bolt-On" Acquisition -- August 18, 2018

At the sidebar at the right, "Deals in the Bakken," about one-third of the way down, the most recent deal posted was the "Whiting bolt-on": 55,000 acres for $130 million.

Today, Don found an article completing the story. Apparently Oasis was the seller. Over at SeekingAlpha:
  • Whiting Petroleum acquired nearly 55,000 net acres in the Williston Basin for $130 million
  • this appears to be Oasis's Foreman Butte position, which it had categorized as lower-quality acreage
  • Whiting believes that it can achieve stronger results with its Generation 4.0 completions
  • the new acreage is on trend with Whiting's strong performing Mallow 34-8H well, although that well is located a fair bit to the east of the acquisition
  • Whiting is able to take a relatively low priced risk due to its improved financial position and cessation of Redtail development spending
I would not have guessed. I did not think Oasis owned that much acreage in this area.

Oasis, August, 2018, corporate presentation --
  • slide 4: net acres in the Williston Basin -- 503,000 net acres
  • see note below: at end of 2017: 520,000 net acres
  • so, something doesn't add up
  • selling 55,000 net acres should have put their total acreage well bellow 500,000
  • perhaps the deal has not closed yet and Oasis is not yet reporting it?
From "Bakken operators":
From Whiting's presentation, the "bolt-on":
Bolt-on appears to be mostly Tier 2 (by 2018 norms) but some Tier 1.

Now compare Oasis acreage in the Williston Basin:


The SeekingAlpha contributor references this Oasis deal earlier in the year:  $283 million / 65,000 acres = $4,500 / acre.

2 comments:

  1. Comparing the two maps. The bolt on appears to be mostly south of the river while Oasis acreage appears mostly north of it. just an observation

    ReplyDelete
    Replies
    1. Thank you. I'm not convinced that the seller was Oasis.

      Delete

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