SandRidge Energy agrees to acquisition and joint development agreement
SandRidge Energy has agreed to acquire producing assets and leasehold interests in the Cherokee play of the Western Anadarko Basin for $144 million, before customary purchase price adjustments. The company also entered into a Joint Development Agreement (JDA) governing its participation in the future development of certain of the acquired leasehold interests.
Highlights of the acquisition include 42 producing wells in addition to 4 drilled uncompleted (DUC) wells scheduled to be turned to production in 2024. There will also be a leasehold interest in 11 drilling spacing units (DSUs), which add inventory of up to 22 two-mile lateral wells in the highly productive core of the Cherokee play.
The acquisition assets are located within the Mid-Continent region, where SandRidge operates, and in the vicinity of the company’s ongoing leasing program.
The effective date has been set as July 1, 2024 with anticipated closing in Q3 2024. SandRidge plans to fund the transaction with cash on hand.
