("SandRidge Sells Repsol JV Interest In Shale Play For $1B," published 3:58 p.m. EST, incorrectly described the Mississippian formation as a shale play rather than a limestone region. A correct version follows.) DOW JONES NEWSWIRES SandRidge Energy Inc. (SD) agreed to sell a stake in its Kansas-area holdings to Repsol YPF SA (REPYY, REP.MC) for $1 billion, joining a growing list of midsize producers that have inked deals with major oil companies in recent months. SandRidge shares jumped 23% to $8.21 Thursday as the company said it will sell 363,636 acres to Repsol for $250 million in cash at closing. Repsol agreed to pay the remainder through a drilling carry agreement, which the Spanish producer is seen satisfying within the next three years at current forecast production rates. Uncoventional plays have yielded growing amounts of oil and gas in recent years as drillers take advantage of advanced methods to take fuel out of previously hard-to-reach geological formations. The new production has often attracted the attention of larger oil majors. The joint venture will include a 25% non-operated working interest in the Extension Mississippian region of western Kansas as well as a 16% non-operated working interest in SandRidge's Original Mississippian play. "We compare the scope of this play to the Bakken and believe it will be transformational for the Mid-Continent region of the United States," SandRidge Chairman and Chief Executive Tom Ward said. Repsol will also pay double the value of its working interest to fund a portion of SandRidge's development costs until the additional $750 million drilling carry obligation is satisfied. Cash from the deal is expected to cut SandRidge's 2012 capital expenditures to $1.6 billion, down from its previous budget of $1.8 billion. The deal is expected to close in the first quarter. -By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com
