Oasis Petroleum launches stock sale to finance acquisition

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.”