SandRidge sells Gulf of Mexico assets to Fieldwood Energy for $1.12 billion

January 9, 2014

Oklahoma City oil and gas explorer SandRidge Energy Inc. said on January 7 it agreed to sell its Gulf of Mexico properties to Riverstone Holdings LLC-backed Fieldwood Energy LLC of Houston for $1.12 billion, less than what it paid for them just two years ago, Deal Pipeline has reported.

The price included $750 million in cash and $370 million in abandonment liabilities. SandRidge is keeping a 2% overriding royalty interest in two exploration prospects, including the deep Miocene in Green Canyon 65, known as the Bullwinkle field, and South Pass 60.

SandRidge said the assets had proved reserves of 29 million barrels of liquids as of Dec. 1 and 168 billion cubic feet of natural gas, citing figures from Netherland, Sewell & Associates. The properties produced 23,500 barrels of oil equivalent per day over the past month, 48% of which was natural gas.

Copyright: Deal Pipeline, 2014