U.S. shale producers Oasis, Whiting to merge in $6 bln deal

A trader waits for the opening of Whiting Petroleum's stock at the post where it is traded on the floor of the New York Stock Exchange

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.

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.

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Shares in Oasis rose 3.8%, while Whiting Petroleum climbed 6.1% in premarket trade.

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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.