Texas-based oil and gas company Oasis Petroleum has agreed to acquire 20,300 net acres in the Delaware Basin from Forge Energy for about $946m in a cash-cum-stock deal.

As per the terms of the deal, Oasis Petroleum will pay $483m in cash and issue 46 million shares, worth around $463m to the shareholders of Forge Energy.

Oasis Petroleum has also announced its plans to sell its acreage in the Williston Basin which it considers as non-core for a price of up to $500m in 2018.

The acreage to be acquired by Oasis Petroleum is located in Texas and is spread across Loving, Ward, Winkler and Reeves Counties and had reported a combined production of around 3,500 barrels of oil equivalent (Boe) per day in November 2017.

The transaction includes 601 gross operated locations where Forge Energy has a working interest of 76% and 507 net core locations targeting the Wolfcamp A, B, and C and the Bone Spring formations.

According to Oasis chairman and CEO Tommy Nusz, the transaction more than doubles the company’s core net inventory and gives a unique opportunity to acquire a highly complementary asset to its Williston Basin acreage that places it to further benefit from its operational strengths.

Nusz added: “Our leading track record of efficient full field development in the Williston Basin positions Oasis to succeed as we expand operations into the Delaware Basin.

“Our new Permian Assets deliver a consolidated position in the deepest and highest pressured part of the Delaware in the heart of the oil window.”

Oasis has plans to drill 16-20 wells in the new acreage and complete drilling of 6-8 wells with an investment of around $100m in 2018.

The transaction, which will be subject to customary closing adjustments and conditions, is anticipated to be completed in February 2018.

Oasis had started its business in 2007 by acquiring 175,000 net acres and 1,000boepd in West Williston for $83m.