Oasis Petroleum Inc. is banking on the proceeds from millions of shares of common stock to fund part of its planned acquisition of another company’s Bakken Shale assets.
The Houston-based exploration and production company has begun selling 48 million shares of common stock, the company announced Tuesday. The company anticipates gross proceeds of $518.4 million.
Oasis is buying 55,000 net acres in North Dakota’s Williston Basin from SM Energy Co. Reuters reported Tuesday that SM Energy’s deal with Oasis is worth $785 million. Also on Tuesday, SM Energy announced it will buy 35,700 acres in Texas’ Permian Basin for $1.6 billion.
In a statement, Oasis said if its planned acquisition of SM Energy’s assets doesn’t occur, it will use proceeds from the stock sale for “general corporate purposes, which may include funding a portion of the company’s 2017 capital budget.”