SandRidge has no associated proved reserves or current production from the deep acreage rights located in the Cana Shale play in northwest Oklahoma. The company will retain the shallow rights to the acreage.
The company said it intends to use the proceeds from the sale to pay down existing borrowings under its credit facility. The transaction is subject to negotiation of a purchase and sale agreement and other customary closing conditions.
SandRidge expects the transaction to close in the third quarter of 2010. The transaction does not affect the company’s pending merger with Arena Resources.
Headquartered in Oklahoma City, SandRidge is an oil and natural gas company with its principal focus on exploration and production. SandRidge and its subsidiaries also own and operate gas gathering and processing facilities and CO2 treating and transportation facilities, and conduct marketing and tertiary oil recovery operations.
