HOUSTON, Sept. 6 (UPI) -- The outlook for reserve basins spread out over the U.S. Northern Plains states is "extremely compelling," the chief executive at Oasis Petroleum said.
Oasis announced it signed four separate deals with a variety of sellers to acquire 161,000 acres of land in the Williston Basin for $1.5 billion. The company already holds more than 330,000 acres in the region and said its production should increase more than 25 percent to 43,000 barrels of oil equivalent with the new acreage.
Chief Executive Officer Thomas Nusz said his company is already operating 11 rigs in the quality acreage at the heart of the Bakken and Three Forks reserve areas in the Northern Plains.
The U.S. Geological Survey estimates the area contains as much as 7.4 billion barrels of oil and 6.7 trillion cubic feet of natural gas.
"We are not only excited about the near-term value of this deal, but the outlook over the long-term is extremely compelling," Nusz said in a statement Thursday. "We expect to accelerate development across our overall combined position next year, increasing to 15 to 16 operated rigs by the end of 2014."