2008-10-20-2008-10-10

To acquire all interests of CEO through participation plan, gaining 43 Bcfe proved in TX, LA, OK, CO.

SandRidge Energy Inc., Oklahoma City, (NYSE: SD) plans to acquire all of the interests of SandRidge chairman and chief executive Tom L. Ward and certain affiliated entities for $60 million in cash. The acquisition will increase SandRidge's net proved reserves by approximately 43 billion cubic feet equivalent. The buyout involves working interest and related reserves in wells drilled by SandRidge since June 2006 related to SandRidge's well participation plan, which was terminated. The plan provided that for as long as 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 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, according to the company, and thus increase its net ownership in proved undeveloped reserves.