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
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?
- enters the Permian; announces that it will buy 20,000 acres there; December 12, 2017
- expects to raise $500 million by selling non-core Bakken assets
- had 517.8 thousand net acres in the Bakken prior to the announcement
- announces interest in spinning off an MLP, May 19, 2017
- Daily activity report: 156 SM Energy wells transferred to Oasis
- Record two-month production for Oasis? February 2, 2017.
- January, 2017: Motley Fool update; very, very bullish; SM Energy deal a big, big deal
- November, 2016: with SM Energy deal closing December 1, 2016, Oasis should have 540,000 net acres
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.
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
ReplyDeleteThank you. I'm not convinced that the seller was Oasis.
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