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U.S. shale producers Oasis, Whiting to merge in $6 billion deal -Breaking

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© Reuters. FILE PHOTO: A model new oil manufacturing facility owned by Oasis Petroleum within the Permian Basin oil and pure gasoline manufacturing space close to Wink, Texas U.S. August 22, 2018. Image taken August 22, 2018. REUTERS/Nick Oxford

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(Reuters) – U.S. shale oil and gasoline producers Oasis Petroleum (NASDAQ:) Inc and Whiting Petroleum (NYSE:) Corp will merge in a $6 billion deal, the businesses stated on Monday.

The deal between the businesses that function within the Bakken shale formation of North Dakota comes amid a big spike in costs following the Russian invasion of Ukraine.

soared to close $130 a barrel on Monday, its highest since 2008, as the US and European allies mull a Russian oil import ban and delays within the potential return of Iranian crude to world markets gasoline tight provide fears. [O/R]

Shares in Oasis rose 3.8%, whereas Whiting Petroleum climbed 6.1% in premarket commerce.

Underneath the phrases of the deal, Whiting shareholders will obtain 0.5774 shares of Oasis widespread inventory and $6.25 in money for every share held.

Upon completion of the deal, which is anticipated within the second half of 2022, Whiting shareholders will personal about 53% and Oasis shareholders will personal about 47% of the mixed firm on a totally diluted foundation.

Each corporations filed for Chapter 11 chapter in 2020 after the power business reeled beneath an unprecedented crash in oil costs because of the COVID-19 pandemic.

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