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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (182106)	1/7/2014 7:46:49 AM
From: Sam	Read Replies (1) \| Respond to of 206183

7:37 am SandRidge Energy sells its Gulf of Mexico business, announces enhanced mid-continent growth strategy -- raises FY14 production guidance ( SD) : Prompted by ongoing drilling success in its onshore operations and a more focused Mid-Continent strategy, SandRidge Energy ( SD) announced the sale of its Gulf of Mexico business, which comprises all of SandRidge's Gulf of Mexico and Gulf Coast properties, to Fieldwood Energy LLC, for $750 million of cash and the assumption of $370 million of abandonment liabilities and subject to customary purchase price adjustments. SandRidge will also retain a 2.0% overriding royalty interest in certain exploration prospects. The proceeds are expected to be reinvested over time in the company's Mid-Continent drilling projects. SandRidge also announced revised guidance for 2014, including production growth of 26% in 2014, an increase from the previous guidance of 12% growth. In 2014, the co will redeploy the capital expenditures that were previously allocated to Gulf of Mexico development into its Mid-Continent assets. SandRidge plans to add three additional rigs during the second quarter of the year, resulting in the drilling of ~30 additional gross wells compared to the previous budget. The co now expects to exit 2014 with 29 rigs operating in its Mid-Continent acreage, where it continues to discover, delineate and develop new, high rate-of-return opportunities. The co is updating 2014 guidance provided on November 5, 2013 to adjust for the impact of the divestiture. The co expects to produce 29.3 MMBoe in 2014, which includes 1.0 MMBoe of production from Gulf of Mexico assets prior to the closing of the transaction. This compares to pro-forma 2013 estimated production of 22.4 MMBoe, after adjusting for divested Gulf of Mexico and Permian properties, and results in 26% organic year-over-year production growth. The co anticipates capital expenditures of $1.475 billion in 2014. The redeployment of offshore capital expenditures is expected to result in 2014 production of 23.2 MMBoe in the Mid-Continent, representing production growth of 37% over estimated 2013 levels. The assets divested had proved reserves at December 1, 2013 of 29 MMBbls of liquids and 168 Bcf of natural gas, as determined by Netherland, Sewell & Associates, and daily production of ~23.5 MBoe/d over the past month, of which ~48% was natural gas.