Sandridge sells Bone Spring asset package

Oil and natural gas exploration company SandRidge Energy has sold its Bone Spring asset package, which includes approximately 40,000 net acres in the Permian Basin with development potential in the Avalon Shale and Bone Spring reservoirs, for $110m (£69.6m) or approximately $2,750 per acre.

At closing, SandRidge received cash proceeds of $88m and an additional $22m was placed in escrow to be released to SandRidge in the first quarter of 2011, subject to satisfaction of customary post-closing conditions.

There is no production or proved reserves associated with these assets and SandRidge will retain all rights above and below the Avalon Shale and Bone Spring formations.

Proceeds from this transaction will be used to fund a portion of SandRidge’s planned capital expenditures in 2011.