US based SandRidge Energy has closed the sale of its Wolfberry assets in the Permian Basin to a private party for cash proceeds of $155m.

The divested properties are producing approximately 1,600boe/d and had estimated proved reserves of 2.37mmboe at 31 December 2009.

The company said that the proceeds will be used to pay down outstanding borrowings under its credit facility.

SandRidge chairman and CEO Tom Ward said that this transaction is another step in the company’s plan to raise capital by divesting of non-core assets and monetizing its horizontal Mississippian acreage in the Mid-Continent.

SandRidge is an oil and natural gas company headquartered in Oklahoma City, Oklahoma, with its principal focus on exploration and production.