Oasis Petroleum has signed a Purchase and Sale Agreement to acquire approximately 10,000 net acres of land primarily in Richland County, Montana and approximately 200 barrels of oil equivalent per day (Boepd) of current production. Total consideration for the transaction was $30.0 million ($26.5 million of cash and approximately $3.5 million of assets). The acreage is 95% held by production and is primarily operated. As operator in this area, Oasis expects to drill and complete future wells consistent with completion practices used in other operated areas, and expects Estimated Ultimate Recoveries (EURs) within its current ranges published for West Williston.
"We are pleased to announce another bolt-on acquisition of production and acreage in Eastern Montana contiguous to our Hebron area," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "This deal is consistent with our philosophy of focusing on large consolidated acreage positions where we can operate. Given that the majority of this acreage is already held by production, we have a lot of flexibility on development timing and capital allocation."