Whiting Petroleum (NYSE:WLL) is in deal talks with smaller rival Abraxas Petroleum (NASDAQ:AXAS), although the terms under discussion are unclear, Reuters reports.
WLL sees a deal as a way to increase its acreage in North Dakota's Bakken Shale and spread its overhead costs over greater production, according to the report.
AXAS said earlier today it had hired investment bank Petrie Partners to review its business and strategic plans and include "potential alternative transactions that might further enhance shareholder value."
AXAS +12.5%, WLL +1.2% after-hours.