SandRidge to buy Forest Oil properties for $800M

AP News
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Posted: Nov 30, 2009 8:56 PM

SandRidge Energy has agreed to buy Permian Basin oil and gas properties from Forest Oil for $800 million.

Oklahoma City-based SandRidge Energy Inc. announced Monday it will acquire the west Texas properties, which cover more than 90,000 net acres. The purchase will increase SandRidge's leasehold in the Permian Basin to more than 130,000 net acres.

The independent oil and natural gas company says about $720 million of the purchase price is attributable to reserves and $80 million to undeveloped acreage, equipment and other assets. The acquired acreage has more than 1,200 drilling locations.

SandRidge says the deal with Denver-based Forest Oil Corp. should close by Dec. 31.

Earlier this month, SandRidge said it was dropping a $230 million bid to buy oil driller Crusader Energy Group Inc.

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Forest is selling off non-core assets in order to focus on developing North American tight-gas and shale resources.

Sandridge shares fell 49 cents, or more than 5 percent, to $8.89 in aftermarket trading, having closed earlier at $9.38. Forest Oil shares closed down 18 cents at $18.32, but jumped $1.04, or 5.7 percent, to $19.36 after-hours.


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