As part of the transaction, SandRidge will retain a 2.0% overriding royalty interest in two identified exploration prospects.
According to a Netherland, Sewell & Associates reserve report as of December 1, 2013, total proved reserves attributable to the acquired entities’ assets were 57.2 Mmboe, of which 51% is oil and 72% is developed.
Additionally, probable reserves were 11.4 Mmboe and possible reserves were 9.0 Mmboe, resulting in total 3P reserves of 77.5 Mmboe. Current daily production exceeds 25,000 boe and is approximately 90% Company operated.
The acquisition further enhances Fieldwood’s position as the owner of the largest asset base on the Gulf of Mexico Shelf with a pro forma leasehold comprising more than 650 blocks and net production of approximately 125,000 boepd, which is 54% oil.
Matt McCarroll, President and Chief Executive Officer of Fieldwood, commented, "This transaction, coming only three months after the closing of our inaugural acquisition from Apache, demonstrates Fieldwood’s continued commitment to our acquire and develop strategy in the Gulf of Mexico. Additionally, the acquisition adds further geographic and geologic diversity by expanding our business to include an onshore Gulf Coast division as well as the deepwater Bullwinkle field."
