Bought E. TX deep rights involving 23,000 net acres.
An undisclosed privately held buyer has acquired the deep rights in East Texas from SandRidge Energy Inc., Oklahoma City, (NYSE: SD) for $58 million. The assets involve approximately 22,000 net acres for rights below the Cotton Valley formation in Gregg, Harrison and Rusk counties. Deutsche Bank Securities Inc. and Tristone Capital LLC advised SandRidge. In addition, SandRidge has sold the company's gathering system in Pinon Field in Pecos and Terrell counties in West Texas to an undisclosed buyer for $200 million in cash. Deutsche Bank Securities was advisor to SandRidge on this transaction. SandRidge chief executive Tom L. Ward says, "We have taken important steps during the last several months toward building the bridge between SandRidge's present and its future. In 2009, we have already raised approximately $350 million through the sale of preferred and common shares. Also, we expect the sale of our WTO midstream assets and East Texas deep drilling rights to generate additional capital during the second quarter of 2009."