2009-07-09-2009-01-30-2009-01-30

Acquired WI in 5,700+ wells, gaining 88.9 Bcf proved, 25 MMcf/d.

Black Stone Minerals Co. LP has acquired working interests in more than 5,700 wells in Oklahoma, Texas, Louisiana, New Mexico and other states from SandRidge Energy chief executive Tom L. Ward for $150 million. Ward sold his interests in wells owned by Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) that he held as co-founder of the company before leaving in 2006 to form SandRidge, Oklahoma City (NYSE: SD). In the same month, Ward also sold approximately 8.9 million shares of SandRidge stock to Oklahoma businessman George B. Kaiser valued at $50 million. Several of Black Stone's investment affiliates, including Black Stone Acquisition Partners III LP, joined in the acquisition, which closed on Jan. 9. Proved reserves are approximately 88.9 billion cubic feet of gas. Production is approximately 25 million cubic feet per day. Upside includes some 1,700 probable and possible drilling locations. Hallie A. Vanderhider, Black Stone president and chief operating officer, says, "The properties are incredibly diversified, with stable production profiles and low finding and development costs. That bodes well for future development drilling." Black Stone chairman and chief executive Thomas L. Carter Jr. says the company's funding commitments, bank lines and investors make it well positioned to respond quickly to attractive investment opportunities in the current credit-constrained environment.