OKLAHOMA CITY, Nov. 4, 2015 /PRNewswire/ -- SandRidge
Energy, Inc. (NYSE: SD) today announced that it has
agreed to acquire the assets of EE3, LLC (EE3) in a privately
negotiated transaction for $190
million in cash, pending standard due diligence and
post-closing adjustments. The transaction is expected to close in
the fourth quarter of 2015.
With this acquisition, SandRidge will have a material, derisked
Niobrara Shale position in the North
Park Basin, Jackson County,
Colorado. The Niobrara Shale is characterized by numerous
stacked pay reservoirs, proven production history, long-lived
reserves and repeatable drilling results. The acquired acreage is
largely concentrated in rural north central Colorado and ideal for pad drilling and
efficient infrastructure installation.
- Large, concentrated acreage position in Niobrara Shale play
that has similar geologic characteristics to the DJ Basin Niobrara
with five stacked benches at depths of 5,500 to 9,000 feet,
reservoir thickness over 450 feet, oil in place greater than 55
MMBo per section and overpressured reservoir above 0.55 psi per
foot
- More than 10 years of identified drilling inventory in the D
Bench of the Niobrara Shale
- Significant upside from additional horizons; Niobrara Shale C
Bench with proven production on this acreage
- EUR per well of 311 MBoe generates 32% IRRs at recent strip
pricing with well costs targeted below $4
million
- Estimated 27 MMBoe proved reserves (82% oil) at projected year
end 2015 SEC prices
- 1.0 MBoepd of current production from 16 horizontal wells
- Initial one rig development program beginning in January 2016, increasing to two rigs in mid-2016;
13 drilling permits already approved
- Development acreage delineated by EOG Resources and EE3; last 6
wells average 30-day IP rate of 577 Boepd
- 3D seismic coverage on 54 square miles
- 100% operated with high working interest and average royalty
burden less than 17%
- Approximately 47% of the 136,000 acres held by production and
by two Federal units
SandRidge President and CEO, James
Bennett, commented, "Our rightsized and derisked
acquisition of assets in the North
Park Basin deliberately matches our expertise with a clear
line of sight to over 1,300 high return drilling locations.
Expanding into a proven high quality repeatable oil play leverages
our core competencies in medium depth horizontal drilling,
unconventional development, infrastructure, and cost reduction.
Significant upsides include additional zones beyond the proven
Niobrara D bench, deploying our Mid-Continent multilateral,
extended lateral designs and improved completion designs. We will
be mobilizing to spud our first well in January."
Mr. Bennett further said, "We anticipate improved
corporate capital efficiency by concurrently developing our strong
Mid-Continent and newly acquired Niobrara resource base. This
valuable acquisition, which long term has the potential to add half
or more to our current reserves base, represents judicious use of
our liquidity."
Additional detail and related exhibits about this transaction
are available via SandRidge's website, www.sandridgeenergy.com,
under Investor Relations/Presentations & Events.
Management discussion of this transaction will be included in
the previously scheduled 2015 third quarter financial results
conference call which will be held on Thursday, November 5, 2015 at 8:00 am CT.
The telephone number to access the conference call from within
the U.S. is (877) 201-0168 and from outside the U.S. is (647)
788-4901. The passcode for the call is 43465872. An audio replay of
the call will be available from November 5,
2015 until 11:59 pm CT on
December 5, 2015. The number to
access the conference call replay from within the U.S. is (855)
859-2056 and from outside the U.S. is (404) 537-3406. The
passcode for the replay is 43465872.
For further information, please contact:
Duane M. Grubert
EVP – Investor Relations & Strategy
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK
73102-6406
+1 (405) 429-5515
About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an oil and natural gas
exploration and production company headquartered in Oklahoma City, Oklahoma with its principal
focus on developing high-return, growth-oriented projects in the
Mid-Continent region of the United
States. In addition, SandRidge owns and operates a saltwater
gathering and disposal system and a drilling and related oil field
services business.
FORWARD LOOKING STATEMENT
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements express a belief, expectation or
intention and are generally accompanied by words that convey
projected future events or outcomes. The forward-looking statements
include statements about the Company's corporate strategies, future
operations, development plans, our drilling inventory, estimated
production, rates of return, reserves, projected capital
expenditures, projected general and administrative and other costs,
anticipated efficiency and cost reduction initiative outcomes,
infrastructure utilization and investment, and capital structure.
We have based these forward-looking statements on our current
expectations and assumptions and analyses made by us in light of
our experience and our perception of historical trends, current
conditions and expected future developments, as well as other
factors we believe are appropriate under the circumstances.
However, whether actual results and developments will conform with
our expectations and predictions is subject to a number of risks
and uncertainties, including the volatility of oil and natural gas
prices, our success in discovering, estimating, and developing oil
and natural gas reserves, the availability and terms of capital,
our timely execution of hedge transactions, credit conditions of
global capital markets, changes in economic conditions, regulatory
changes and other factors, many of which are beyond our control. We
refer you to the discussion of risk factors in Part I, Item 1A –
"Risk Factors" of our Annual Report on Form 10-K for the year ended
December 31, 2014 and in comparable
"Risk Factors" sections of our Quarterly Reports on Form 10-Q filed
after the date of this press release. All of the forward-looking
statements made in this press release are qualified by these
cautionary statements. The actual results or developments
anticipated may not be realized or, even if substantially realized,
they may not have the expected consequences to or effects on our
company or our business or operations. Such statements are not
guarantees of future performance and actual results or developments
may differ materially from those projected in the forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements.
The SEC permits oil and natural gas companies, in their filings
with the SEC, to disclose only proved, probable and possible
reserves, as each is defined by the SEC. At times we use the term
"EUR" (estimated ultimate recovery) to provide estimates that the
SEC's guidelines prohibit us from including in filings with the
SEC. These estimates are by their nature more speculative than
estimates of proved, probable or possible reserves and,
accordingly, are subject to substantially greater risk of being
actually realized by the company. For a discussion of the company's
proved reserves, as calculated under current SEC rules, we refer
you to the company's amended Annual Report on Form 10-K referenced
above, which is available on our website at www.sandridgeenergy.com
and at the SEC's website at www.sec.gov.
Logo -
http://photos.prnewswire.com/prnh/20120416/DA88110LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sandridge-energy-inc-acquires-north-park-basin-niobrara-shale-oil-assets-for-190-million-in-cash-300172688.html
SOURCE SandRidge Energy