Energy Prospectus

We now have close to 500 EPG members. On a day when all of our Sweet 16 Growth Portfolio stocks are up big except for one, guess which one I get e-mails about?

Oasis Petroleum (OAS) was down six cents (0.15%) today on heavy volume. There is nothing wrong at Oasis! The Motley Fool published an article yesterday about another company (http://www.fool.com/investing/general/2 ... under.aspx) that just mentioned OAS in what some perceived as a negative light.

Yes, Oasis' production was flat from Q1 to Q2 due to weather related completion delays. The weather has cleared up and all of our Bakken companies are going to ramp up production during the 2nd half. BTW the weather in North Dakota is ALWAYS bad in the 2nd quarter. They call it "Spring Break-Up". It is more like "Spring Mud Pit". I worked for Hess for 18 years. North Dakota is a Core Area for Hess. While I was there, we pretty much shut-down all ND drilling operations from Jan-June. Pad drilling now allows companies to drill all year, but those huge completion jobs are very expensive in the mud.

Something else to remember: The spike in WTI crude oil prices during the 3rd quarter is going to give the Bakken companies a Big Revenue Boost. Bakken oil is up close to $15/bbl since July 1st.

Oasis Petroleum +5% on Williston deal, but company no longer takeover bait • 2:44 PM

Investors cheer Oasis Petroleum's (OAS +5%) move to snatch up 161K acres' worth of North Dakota oil fields, including 136K acres from Zenergy, one of the last remaining closely held energy producers in the state’s Williston Basin.

“As some have been concerned about the company stepping outside the basin to bolster inventory, this announcement could cause... a sigh of relief,” SunTrust analysts write.

But the deal could disappoint those who saw OAS as takeover bait; the acquisitions, which boost the size of the company’s North Dakota drilling acreage by nearly 50%, make it a much larger bite to swallow.

Emerald Oil (EOX +4.2%) and Triangle Petroleum (TPLM +3.2%) also are up sharply, attributed to the OAS Williston Basin news.

http://seekingalpha.com/currents/post/1 ... c_readmore

I do not agree that the deal makes it less of a takeover target. My guess is that Statoil is taking a real hard look at OAS, WLL and KOG.

Oasis Petroleum (OAS) pushed higher on Friday, thanks in part to higher crude oil prices that lifted all of our Sweet 16.

Oasis said late Thursday it signed four separate deals to add 161,000 net acres to the 331,000 net acres it already has. Production will increase by 9,300 barrels of oil equivalent to 43,000 boe, the company said.

“These acquisitions add high quality acreage in the heart of the Bakken and Three Forks play, providing incremental scale to our premier position in the Williston Basin,” Oasis Chairman and Chief Executive Thomas B. Nusz said in a statement.

Analysts at Simmons & Co. said Oasis is an “attractively valued Bakken growth story” with a best-in-class, low-cost operations.

LOS ANGELES (AP) -- Shares of Oasis Petroleum Inc. got a lift Friday, a day after the oil and gas company announced several land acquisition deals that will help boost production in the Williston Basin of North Dakota.

A Deutsche Bank analyst raised his rating on the company's shares to a "Buy," while several others raised their price target on the stock.

THE SPARK: The company agreed to pay $1.52 billion to acquire 161,000 acres of land in four separate deals. The move will boost its holdings in the Williston Basin by nearly 50 percent to 492,000 acres. Recent production on the total acreage acquired in the deals is equal to about 43,000 barrels of oil per day.

THE BIG PICTURE: Oasis, based in Houston, is an independent oil and gas producer with operations in North Dakota and Montana. The company currently operates 11 rigs in the Williston Basin. The company expects to be running as many as 16 by the end of next year.

THE ANALYSIS: In a research note Friday, Deutsche Bank analyst Ryan Todd said that acquisition amounts to a double victory for Oasis. He noted that, in addition to significantly boosting the company's land holdings, it reduces or removes the risk of having to expand outside the Williston Basin.

Todd raised his rating on the stock to "Buy" from "Hold" and increased his target price on the shares to $55 from $45.

In a separate note, a group of KeyBanc analysts said they believe there isn't any merit now to concerns that Oasis doesn't have ample quality holdings. They also estimated that the company now has about 11 years of land inventory.

The KeyBanc analysts reiterated their "Buy" rating on Oasis shares and raised their price target on the stock to $51 from $47.

Oasis Petroleum price target raised to $68 from $57 at Jefferies
Jefferies raised its price target for Oasis Petroleum citing visibility of inventory following the company's Williston basin acquisition. The firm keeps a Buy rating on the stock.

Oasis Petroleum (OAS): An updated Net Income & Cash Flow Forecast model which includes the acquisition announced this week has been posted under the Sweet 16 Tab.

My Fair Value Estimate is now $64/share.