Oasis Petroleum Inc. (OAS)
Oasis is a Houston based E&P company, that recently IPO’ed on the NYSE. Yesterday several large analysts initiated coverage of the stock putting price targets at around $20 a share. I decided that I would like to pick up this stock, here are some of the reasons why.
Oasis (OAS) has just under 300,000 acres of leasehold in the Williston Basin. This is located in North Dakota and Montana, and is one of the larger onshore US oil fields. In fact the US Geological Survey (USGS) now says there are 3.0 – 4.3 billion barrels of ‘technically recoverable oil’. In 1995 they assessed only 151 million barrels. Advances in drilling technology mean that more oil is recoverable than ever before. Oasis seeks to utilize these new technologies, along with its vast amount of land leases, to extract the oil.
OAS went public on June 17th at about $14 a share, I purchased it July 28th for $16.79. In the last two days the stock is up about 3.5%, and I am excited to see what it can do. A run up to the $20 target issued by the analysts would be almost 20% gain for me.
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