SandRidge Energy, Inc. to Sell Permian Assets to Focus the Lucrative and Oil-rich Mississippian Play.

December 19, 2012

SandRidge Energy has announced that the corporation will sell their Permian Basin assets for $2.6 Billion In Cash. The sale is part of SandRidge Energy’s plan to make a strategic shift from natural gas to emphasis oil and petroleum development. The sale to Sheridan Production Partners II will be effective January 1, 2013, and close in the first quarter of 2013.

SandRidge President and CEO Tom Ward said, “With these proceeds we will have a cash balance of almost $3 billion and liquidity of over $3.5 billion, which we intend to use to reduce debt and strengthen the balance sheet. This will also allow us to fund development of our acreage position as well as future opportunities in the highly scalable, high return Mississippian Play.”

Ward added, “We are excited about focusing our efforts on the Mississippian, which encompasses parts of northern Oklahoma and western Kansas, an area we believe generates some of the highest rates of return for horizontal drilling in the U.S. today. With 1.85 million net acres and 11,000 possible future drilling locations, the Company is the industry leader in the region.