Fieldwood Energy LLC acquired SandRidge Energy, Inc.’s Gulf of Mexico and Gulf Coast business unit for US$750 million, with an effective date of Dec. 1, 2013, and subject to customary purchase price adjustments.
As part of the transaction, SandRidge will retain a 2% overriding royalty interest in two identified exploration prospects.
According to a Netherland, Sewell & Associates reserve report as of Dec.1, 2013, total proved reserves attributable to the acquired entities’ assets were 57.2 MMboe, of which 51% is oil and 72% is developed. Additionally, probable reserves were 11.4 MMboe and possible reserves were 9 MMboe, resulting in total 3P reserves of 77.5 MMboe. Current daily production exceeds 25,000 boe and is about 90% company operated.
The acquisition further enhances Fieldwood’s position as the owner of the largest asset base on the Gulf of Mexico Shelf with a pro forma leasehold comprising more than 650 blocks and net production of about 125,000 boe/d.
“The acquisition adds further geographic and geologic diversity by expanding our business to include an onshore Gulf Coast division as well as the deepwater Bullwinkle field,” Matt McCarroll, president and chief executive officer of Fieldwood said.“Additionally, the acquired assets add a number of near-term, high-quality drilling prospects to our existing drilling inventory.”
Fieldwood has obtained underwritten committed financing for the transaction from Citigroup Global Markets Inc., J.P. Morgan, Deutsche Bank AG New York Branch, BofA Merrill Lynch and Goldman Sachs Bank USA.