SandRidge Energy has traded some of its drilling rights for $1 billion to finance the development of its holdings in western Kansas and northern Oklahoma.
The Oklahoma City-based company says in a statement that it is selling the rights to 363,636 acres in the two states, representing a minority of its leased acreage. Repsol YPF, a Spanish energy company, will pay SandRidge $250 million in cash and $750 million for development.
The Wichita Eagle reports ( http://bit.ly/s1Ms15) that SandRidge expects to spend the $750 million within three years. The joint venture will exclude all wells and acreage in the covered area drilled before Jan. 1 and all wells and acreage associated with SandRidge Mississippian Trust I.
The transaction is expected to close in the first quarter, subject to closing conditions.