SandRidge To Unload E TX Gas Properties
To acquire certain E TX, including 25,000 net acres in Gregg, Harrison, Rusk and Panola counties, gaining 25 MMcfe/d.
Privately held, Houston-based NFR Energy LLC plans to acquire certain East Texas natural gas properties from SandRidge Energy Inc., Oklahoma City, (NYSE: SD) for $231 million.
The properties include approximately 25,000 net acres in Gregg, Harrison, Rusk and Panola counties. Average 2011 production is approximately 25 million cubic feet of gas equivalent per day.
Pro forma, SandRidge expects production to be 23.9 million barrels equivalent in 2011 and 27.7 million barrels equivalent in 2012.
SandRidge plans to use the cash proceeds to fund a portion of its oil-focused drilling program.
SandRidge chairman and chief executive Tom Ward says, “This asset sale is part of the capital plan to execute our three-year-strategy of tripling EBITDA, doubling oil production, and lowering our debt ratio by the end of 2014 by continuing to develop high rate of return oil wells in the Central Basin platform and the Mississippian play in the Midcontinent.”
The deal is expected to close in November.
NFR Energy is principally focused on developing its Haynesville and Cotton Valley assets in East Texas.