SandRidge Thins The Portfolio (SD)
It has been a rough year for SandRidge Energy, Inc. (NYSE: SD) after earnings, guidance, and production/rates have not always been so positive as it mixes its gas and oil portfolio. Shares have recovered from the post-dip lows and now…
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This morning SandRidge announced that it has sold off its Bone Spring asset package for $110 million. The company will receive $88 million cash at the closing. SandRidge will then receive the additional $22 million in the first quarter of 2011, subject to satisfaction of customary post-closing conditions.
The Bone Spring package includes approximately 40,000 net acres in the Permian Basin with development potential in the Avalon Shale and Bone Spring reservoirs. That brings the sale to approximately approximately $2,750 per acre.
SandRidge noted that there is no production or proved reserves associated with these assets, and SandRidge will retain all rights above and below the Avalon Shale and Bone Spring formations.
As far as what the $110 million translates to, SandRidge has a market cap of $2.1 billion. After closing at $6.08, its 52-week trading range is $3.87 to $11.08.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
