SandRidge Energy, Inc. Acquires North Park Basin Niobrara Shale Oil Assets for $190 Million in Cash

SandRidge Energy, Inc. Acquires North Park Basin Niobrara Shale Oil Assets for $190 Million in Cash

Adds 136,000 Largely Contiguous Net Acres and Multiyear Niobrara Shale Drilling Inventory in North Park Basin, Colorado
Diversifies Into Proven High Quality Repeatable Oil Asset Matching SandRidge’s Operating Strengths
High Quality Stacked Pay Resource Play with Over 1,300 Gross Locations Identified
Derisked by 16 Existing Horizontal Producers, Expect to Add ~100 PUD Locations at Year End
First Well to Spud in January 2016, with 13 Approved Drilling Permits

Oklahoma City, Oklahoma, November 4, 2015 – SandRidge Energy (NYSE: SD) today announced that it has agreed to acquire the assets of EE3, LLC (EE3) in a privately negotiated transaction for $190 million in cash, pending standard due diligence and post-closing adjustments. The transaction is expected to close in the fourth quarter of 2015.
With this acquisition, SandRidge will have a material, derisked Niobrara Shale position in the North Park Basin, Jackson County, Colorado. The Niobrara Shale is characterized by numerous stacked pay reservoirs, proven production history, long-lived reserves and repeatable drilling results. The acquired acreage is largely concentrated in rural north central Colorado and ideal for pad drilling and efficient infrastructure installation.
 Large, concentrated acreage position in Niobrara Shale play that has similar geologic characteristics to the DJ Basin Niobrara with five stacked benches at depths of 5,500 to 9,000 feet, reservoir thickness over 450 feet, oil in place greater than 55 MMBo per section and overpressured reservoir above 0.55 psi per foot
 More than 10 years of identified drilling inventory in the D Bench of the Niobrara Shale
 Significant upside from additional horizons; Niobrara Shale C Bench with proven production on this acreage
 EUR per well of 311 MBoe generates 32% IRRs at recent strip pricing with well costs targeted below $4 million
 Estimated 27 MMBoe proved reserves (82% oil) at projected year end 2015 SEC prices
 1.0 MBoepd of current production from 16 horizontal wells
 Initial one rig development program beginning in January 2016, increasing to two rigs in mid-2016; 13 drilling permits already approved
 Development acreage delineated by EOG Resources and EE3; last 6 wells average 30-day IP rate of 577 Boepd
 3D seismic coverage on 54 square miles
 100% operated with high working interest and average royalty burden less than 17%
 Approximately 47% of the 136,000 acres held by production and by two Federal units

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