SandRidge Energy, Inc. (fka SDOCQ)

[betahighlander]

SandRidge Energy, Inc. Acquires North Park Basin Niobrara Shale Oil Assets for $190 Million in Cash
Adds 136,000 Largely Contiguous Net Acres and Multiyear Niobrara Shale Drilling Inventory in North Park Basin, Colorado

Diversifies Into Proven High Quality Repeatable Oil Asset Matching SandRidge's Operating Strengths

High Quality Stacked Pay Resource Play with Over 1,300 Gross Locations Identified

Derisked by 16 Existing Horizontal Producers, Expect to Add ~100 PUD Locations at Year End

First Well to Spud in January 2016, with 13 Approved Drilling Permits


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SandRidge Energy, Inc. logo
SandRidge Energy, Inc. logo
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 [phone] and from outside the U.S. is [phone]. 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 [phone] and from outside the U.S. is [phone]. The passcode for the replay is 43465872.

http://www.prnewswire.com/news-releases/sandridge-energy-inc-acquires-north-park-basin-niobrara-shale-oil-assets-for-190-million-in-cash-300172688.html