Oasis Petroleum (ticker: OAS) continued its portfolio shift today, selling properties in the Williston Basin in two transactions.
Oasis has agreed to sell its Foreman Butte position and some non-operated assets to buyers that the company declined to disclose. In total, these assets account for 65,000 net acres, and produced 4.4 MBOEPD. Oasis will receive a total of $283 million for the assets, making this the largest sale by the company since early 2014.
A price of $283 million means the acreage was valued at an unadjusted $4,350/acre, a price that is below average for the Bakken but in line for non-core acreage.
If production is valued at $40,000 per flowing BOE, the buyers paid an adjusted $1,650/acre, also in line with non-core acreage in the Bakken.
The asset sale continues Oasis’s refocusing, as the company recently looked beyond the Bakken in an acquisition of 20,300 acres in the Permian for $946 million. This was a major move for Oasis, as it has historically been a pure play Bakken operator.
Remaining assets up for sale could be worth $366 million to $446 million
Oasis hopes to sell additional acreage in the coming year, as it initially targeted $500 million in asset sales. The company highlighted 200,000 net acres and 8 to 10 MBOEPD of production that could be divested, so it has already progressed more than halfway to its goal. Based on this transaction, the remaining acreage alone would be worth an unadjusted $588 million. The unsold production is worth $144 to $224 million. If the remaining acreage is valued based on the adjusted acreage price seen, it is worth $222 million, meaning the overall position is worth $366 to $446 million.
