OAS Upgrade

[dan_s]

OAS--Oasis Petroleum upgraded to Buy from Hold at Canaccord
Canaccord upgraded Oasis Petroleum based on valuation and increased drilling inventory. Price target raised to $55 from $50.

My Fair Value Estimate (current break-up value) is $70/share.

The PV10 of just their proven reserves is over $5 Billion. This Sweet 16 company has some VERY VALUABLE leasehold and most of it is now held by production ("HBP").

A Pure Play on the Bakken / Three Forks: Oasis built its leasehold position in its West Williston and East Nesson project areas through acquisitions and development activities and, as of December 31, 2013, had 515,314 net acres in the Williston Basin, including 422,386 net acres held-by-production.

Based on the Company's successful acquisitions in the second half of 2013 and its active leasing efforts, Oasis has grown operated spacing units by 44%, to 403 from 280 drilling spacing units ("DSU"). Additionally, through its extensive subsurface modeling and evaluation, Oasis is now counting approximately 10 wells per DSU, increasing its wells per spacing unit by 25% from 8 wells per DSU at the end of 2012. Based on both the increased DSU count and the increased wells per DSU, the Company's overall remaining operated drilling inventory as of December 31, 2013 grew by 78% year over year to 3,590 drilling locations.