2008-09-02-2008-05-08-2008-05-22

Purchased 24,000 net undeveloped acres, WI in 38 producing wells, gathering/compression systems/treating facilities in Rio Blanco Co. in CO Piceance Basin.

The Williams Companies Inc., Tulsa, Okla., (NYSE: WMB) has completed its acquisition of interests in Colorado's Piceance Basin in Rio Blanco County from SandRidge Energy Inc., Oklahoma City, (NYSE: SD) and other sellers for approximately $285 million in cash. Net proceeds to SandRidge will be approximately $140 million following allocation of the sales price among multiple sellers. The assets represent substantially all of the company's holdings in the Piceance. The assets include 24,000 net undeveloped acres, working interests in 38 producing wells, and gathering, compression systems and treating facilities that are valued at $35 million. Williams reports the assets could represent more than 1.9 trillion cubic feet equivalent of probable and possible reserves on 10-acre spacing. Approximately two-thirds of the acreage is in an area of mutual interest with a third party that has the option to purchase a 49% interest in acquired assets from Williams. The acreage is on federal land. The acreage is contiguous to Williams' existing 17,500 net acres and 48 producing wells in the Ryan Gulch area of the Piceance Basin Highlands. The acquisition increases Williams' probable and possible reserves in the Piceance by more than 42% to 6.4 trillion cubic feet equivalent. Williams had 2.8 trillion equivalent of proved reserves in the Piceance at year-end 2007. Total proved reserves for the company year-end 2007 were 4.3 trillion equivalent, and total proved, probable and possible reserves were 11.4 trillion equivalent. Williams' operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast and eastern U.S.