By OGJ editors
HOUSTON, Sept. 23 -- SandRidge Energy Inc. said it will buy bankrupt Crusader Energy Group Inc. for $230 million, no more than $85 million of which will be cash. Both are Oklahoma City firms.
The purchase will close upon the effectiveness of Crusader’s Chapter 11 reorganization, expected in the last quarter of 2009. Crusader’s unsecured creditors committee and its principal secured creditors agreed to support the deal.
SandRidge said the deal will “further substantiate” its positions in the Anadarko basin of western Oklahoma and the Permian basin in West Texas. Crusader’s production revenue is expected to enhance SandRidge’s balance sheet and provide increased liquidity.
The transaction will boost SandRidge’s reserves, production, and cash flow and provide new drilling opportunities.
The acquisition agreement provides that if it is terminated by either company because the bankruptcy court approves an alternative transaction that is completed within 1 year, Crusader will pay SandRidge a termination fee.