U.S. shale producers Oasis, Whiting to merge in $6 bln deal
pdates with background on crude prices, share movement, details on the deal.
The deal between the companies that operate in the Bakken shale formation of North Dakota comes amid a significant spike in crude oil prices following the Russian invasion of Ukraine.
Brent crude soared to near $130 a barrel on Monday, its highest since 2008, as the United States and European allies mull a Russian oil import ban and delays in the potential return of Iranian crude to global markets fuel tight supply fears. O/R
Shares in Oasis rose 3.8%, while Whiting Petroleum climbed 6.1% in premarket trade.
Under the terms of the deal, Whiting shareholders will receive 0.5774 shares of Oasis common stock and $6.25 in cash for each share held.
Upon completion of the deal, which is expected in the second half of 2022, Whiting shareholders will own about 53% and Oasis shareholders will own about 47% of the combined company on a fully diluted basis.
Both companies filed for Chapter 11 bankruptcy in 2020 after the energy industry reeled under an unprecedented crash in oil prices due to the COVID-19 pandemic.
(Reporting by Arunima Kumar in Bengaluru; Editing by Vinay Dwivedi)
March 7 (Reuters) - U.S. shale oil and gas producers Oasis Petroleum Inc OAS.O and Whiting Petroleum Corp WLL.N will merge in a $6 billion deal, the companies said on Monday.