SandRidge Energy Acquires ORRI Assets in $4.85 Million Deal
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SandRidge Energy has acquired all the overriding royalty interest assets of SandRidge Mississippian Trust I. The gross purchase price is $4.85 million (net $3.55 million). At the current strip and based on historical production trends, the company believes the acquisition represents an attractive price-to-value, approximating PDP PV-55 and a 2-year cash-on-cash payback.
“Buying in the ORRIs from SDT will add to our PDP reserves and improve our netbacks and cash flow in wells that we already operate for the most part. This acquisition is a good example of the relatively low-capital, high-return, quick-payback, ‘small-ball’ investments that the board and management are making to increase shareholder value realization from its asset base,” said Carl Giesler, president and CEO.
About SandRidge Energy, Inc.
SandRidge Energy is an independent oil and gas company engaged in the development and acquisition of oil and gas properties. Its primary area of operations is the Mid-Continent region in Oklahoma and Kansas.
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