By OGJ editors
HOUSTON, Apr. 6 -- Oklahoma City independent SandRidge Energy Inc. has agreed to acquire Tulsa-based Arena Resources Inc. for $1.6 billion in cash and stock, as SandRidge moves to increase its oil production and reserves base.
The combined company will have more than 200,000 net acres in the Permian basin and 5,700 identified locations to drill, primarily in the shallow San Andres and the Clear Fork formations.
The transaction, subject to approval by the stockholders of both companies and other customary conditions, is expected to close by the third quarter.
Arena shareholders will receive stock and cash worth about $40/share of Arena stock. SandRidge will issue about 4.8 shares of SandRidge stock and pay $2.50 in cash for each share of Arena common stock.