SandRidge Energy oil exploration company enters into deal with Repsol
SandRidge Energy is selling 363,636 net acres to Repsol YPF for $1 billion.
SandRidge Energy has announced that it has entered into a new deal with a subsidiary of Repsol YPF, which may have involved merger and acquisition consultants.
In total, SandRidge will sell 363,636 net acres at a cost of $1 billion (£637.9 million), with $250 million to be paid in cash and the remainder to be paid in the form of a drilling company.
Some 25 per cent non-operated working interest will be sold in the Extension Mississippian play in west Kansas, as well as 16 per cent non-operated working interest in the firm's Original Mississippian play.
Chairman and chief executive of the enterprise Tom Ward said Repsol shares his company's confidence that there is potential for development in the "vast" Mississippian oil play.
He said the business has been a leader in this industry "and has now drilled more than 195 horizontal wells, representing nearly half of all the horizontal wells drilled in the play to date".
SandRidge shares were trading at $8.21 on the New York Stock Exchange today after increasing by $1.54.
Posted by Edel Quinn
Source: SandRidge Energy press release, December 22nd