Is Oasis Petroleum a Takeout Target?

Oasis Petroleum Bakken Acreage Map - Acquisition Included
Oasis Petroleum Bakken Acreage Map - Acquisition Included

Location, location, location. It's a good time to have an interest in the Bakken and Three Forks.

A recent article by Bloomberg indicates Oasis Petroleum's recent Bakken acquisition makes the company even more attractive to buyers. Oasis acquired 161,000 acres through four separate transactions and now controls ~492,000 net acres prospective for Bakken drilling.

A few highlights from the article include:

  • European companies like Statoil and Repsol might be interested in expanding their shale footprint in the U.S.
  • Oasis offers "core acreage in very good areas."
  • The company's large Bakken position signals a "commitment to be a pure-play", which is attractive to buyers
  • Larger drilling inventory makes the company more attractive
  • Oasis is trading ~70% cheaper than other U.S. explorers based on EBITDA multiples

Read more in the article published at bloomberg.com

Savage Adds Oilfield Logistics Services At North Dakota Terminal

Savage is expanding the company's Bakken Petroleum Services Hub in Trenton, ND. The company is leveraging the acquisition of Fort Worth Pipe to expand its offering in the North Dakota. New services include:

  • OCTG storage
  • Transloading
  • Trucking
  • Threading
  • Pipe inspection & clean and drift services

"We are always working to bring expanded value to our customers," said Nathan Savage, Sr. VP at Savage. "The addition of OCTG logistics to the Trenton terminal was a natural fit. The knowledge and network of locations we`ve gained by joining with the Ft. Worth Pipe team will allow us to expand the suite of services we can provide to our oilfield customers."

Read the full press release at savageservices.com

The article above was published through BakkenShale.com`s press release distribution service. Learn more about Bakken Advertising Here

Expect Ups and Downs in the Bakken - Lynn Helms

We in full development mode in the Bakken, but don't expect smooth sailing from here on out. That was was the basic message from the Department of Mineral Resources Director Lynn Helms at the North Dakota Petroleum Council's annual meeting. A few of threats to development include:

  • Federal regulations such as new rules around hydraulic fracturing
  • A lack of light-sweet crude refining capacity

The commission is also working to help reduce natural gas flaring.

“We have a tremendous amount of work in front of us,” Helms said. “I commend you for how responsibly you`re approaching this process as we develop this amazing, amazing resource.”

Largest Monthly Bakken Oil Production Increase Ever in July

Bakken Oil Production Forecast - NDPA
Bakken Oil Production Forecast - NDPA

Bakken oil production reported in July is both a new record and a broken record in North Dakota.

Oil production in North Dakota grew by almost 53,000 b/d in a single month. The increase from June to July represents the largest monthly increase in production in the state's history.

Preliminary estimates peg state production at 874,460 b/d and 970 mmcfd (both records). The Bakken and Three Forks contributed 810,795 b/d.

The increase was primarily driven by an increase from 102 well completions in June to 251 well completions in July. Less than 100 completions are needed to sustain production.

Production has only increased more than 40,000 b/d in a single month twice and the biggest increase before now was ~41,000 b/d in February.