NEW YORK (Thomson Financial) - SandRidge Energy Inc. Monday said it has
entered into an agreement with Occidental Petroleum Corp. to develop a West
Texas hydrocarbon gas processing plant and related pipeline infrastructure that
will provide carbon dioxide (CO2) for use in Occidental's enhanced oil recovery
projects.
Occidental will fund total expected project costs of $1.1 billion, and
SandRidge will drill, produce and deliver high Co2 gas to the plant.
Occidental will operate the plant and treat the gas under the 30-year
agreement. SandRidge will retain 100% of the methane gas and Occidental will
retain Co2 for use in tertiary oil recovery in West Texas.
SadnRidge shares fell 0.7% to $63.11 in early trading. Occidental shares
rose 1.6% to $89.84.
Christie Rizk
cr/vj
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