SandRidge Energy Inc. has agreed to acquire certain producing assets and leasehold interests in the Cherokee play of the Western Anadarko basin for cash consideration of $144 million, the company said in a release July 29.
A joint development agreement has been signed, governing SandRidge participation in the future development of certain of the acquired leasehold interests.
The assets include net production of about 6,000 boe/d (~40% oil) focused in Ellis and Roger Mills Counties, Okla., and include 42 producing wells in addition to four drilled uncompleted (DUC) wells scheduled to be turned to production in 2024. The deal includes leasehold interest in 11 drilling spacing units (DSUs), which add inventory of up to 22 two-mile lateral wells in the productive core of the Cherokee play, the company said. SandRidge will assume operatorship of new wells after they are producing.
“These assets bolster our base production and cash flow profile by immediately adding higher oil content while providing access to a successful drilling campaign through joint development of the assets. We're looking forward to participating in new high-return drilling and completion projects and taking over operatorship of the new wells, allowing us to apply SandRidge's low-cost lease operating expertise to the new assets,” said Grayson Pranin, SandRidge president and chief executive officer.
The deal is expected to close in this year’s third quarter.
