Published:
SandRidge Energy, Inc. Acquires Additional Interests and Terminates Executive Well Participation Plan
OKLAHOMA CITY, Oct. 10 /PRNewswire-FirstCall/ -- SandRidge Energy, Inc.
(NYSE: SD) ("SandRidge") today announced that it agreed with its Chairman and
CEO, Tom L. Ward and certain of his affiliated entities, to acquire all of
Mr. Ward's working interest and related reserves in wells drilled by SandRidge
since June 2006 pursuant to SandRidge's Well Participation Plan (the "Plan").
SandRidge paid $60.0 million in cash for the interests, subject to
post-closing adjustments. In connection with the acquisition, Mr. Ward and
SandRidge agreed to terminate the Plan. SandRidge expects that the acquisition
and termination of the Plan will increase its net proved reserves by
approximately 43 Bcf of natural gas equivalent.
The Plan provided that for as long as Mr. Ward was employed by SandRidge,
he had a right to participate in and pay up to a 3% of 8/8ths working interest
in all wells (subject to certain exceptions) drilled by SandRidge through at
least 2016, after which the company could elect to terminate. Termination of
the Plan will permit SandRidge to retain a greater working interest in future
wells, thus increasing its net ownership in proved undeveloped reserves.
The transaction was unanimously approved by the disinterested members of
the Board of Directors, who engaged an independent financial advisor to
provide an opinion as to the fairness to SandRidge from a financial point of
view of the consideration to be paid in the transaction.
For further information, please contact:
Dirk M. Van Doren
Chief Financial Officer
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, Oklahoma 73102-6406
(405) 429-5520
SandRidge Energy, Inc. is a natural gas and crude oil company
headquartered inOklahoma City, Oklahoma, with its principal focus on
exploration and production. SandRidge also owns and operates gas gathering and
processing facilities and CO2 treating and transportation facilities, and has
marketing and tertiary oil recovery operations. In addition, SandRidge owns
and operates drilling rigs and a related oil field services business operating
under the Lariat Services, Inc. brand name. SandRidge focuses its exploration
and production activities inWest Texas, the Cotton Valley Trend inEast
Texas, the Gulf Coast, the Mid-Continent, and theGulf of Mexico. SandRidge's
Internet address is http://www.sandridgeenergy.com.
SOURCE SandRidge Energy, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: ,OIL,TNM,OK-S and Ridge-Energy
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