Oasis Petroleum will go public tonight according to CNBC: 42 million shares in the $13 - $15 range, to raise about $400 million. The press release was two days ago anticipating the IPO sometime this week. Here is the CNBC video. This is the original "Form S1" from March, 2010.
When I was first alerted to the pending IPO back on March 27, 2010, I posted my guess for fair value for Oasis based on NOG and KOG (two different business models): my fair value guess -- 30 million shares at $12/share.
Oasis currently has four (4) active rigs in North Dakota, one less than the highly visible BEXP.
Regardless of what Oasis does, this is another opportunity for national awareness of the Bakken. I think it will help all Bakken stocks.
I am accumulating shares in three or four other Bakken companies and won't participate in the Oasis IPO, but I can't argue against it. I don't know history of Oasis very well, but I believe they partnered with MDU/Fidelity in the early days, and then during the drop in oil prices in 2008/2009, Oasis acquired all (or most) of MDU/Fidelity acreage in North Dakota. At the time, MDU had just successfully petitioned the NDIC for defining a new field, the Cottonwood field, which has been less than spectacular, although recently EOG has had some pretty good wells there.
It looks like a nice day for an energy IPO; oil has been trending higher ever since the administration shut down the gulf, and oil is having a good day today, also.
It also looks like a nice for a picnic in the Bakken; some areas will see highs in the low 80's; rain in some areas tomorrow.
Notice you do not post much about Questar, Check it out, Big things happening there
ReplyDeleteIt's funny you should mention Questar. I came across this company on/about April 22, 2010, and posted it's plans for a tax-free spin-off of its E&P unit. I was very impressed, and had I had money at the time, I probably would have invested. Then, I simply forgot about Questar (my mistake) --- too many companies to follow in the Bakken and I missed this one. I will do another post on Questar to make up for my oversight. Thank you for reminding me. But, yes, I am very, very impressed with Questar after looking at its acreage locations.
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