Oasis Petroleum Raises $588 Million in IPO

(Reuters) – Oil and natural gas exploration company Oasis Petroleum Inc (OAS.N) said late on Wednesday it priced its initial public offering at $14 a share.

Houston, Texas-bases Oasis sold 42 million shares in its offering. The company had earlier planned to sell the shares for $13 to $15 each.

The company is leasing land in the Williston Basin in Montana and North Dakota. It said in its prospectus that it had an estimated 13.3 million barrels of oil equivalent net proved reserves as of December 31.

Investors include private equity funds affiliated with EnCap. Oasis said it would use funds from the offering to repay debt and for exploration and development.

Oasis posted a net loss of $3.23 million on revenue of $20.07 million in the three months ended March 31.

Underwriters on the offering were led by Morgan Stanley (MS.N) and UBS (UBSN.VX). The shares are expected to begin trading on the New York Stock Exchange on Thursday under the symbol “OAS.”

(Reporting by Clare Baldwin in New York and Sakthi Prasad in Bangalore; Editing by Anshuman Daga)