SandRidge acquiring Bonanza Creek Energy

SandRidge Energy Inc., Oklahoma City, will deepen its inventory of drilling locations in the Denver-Julesburg basin of Colorado under a definitive merger agreement it has entered with Bonanza Creek Energy Inc., Denver.

SandRidge Energy Inc., Oklahoma City, will deepen its inventory of drilling locations in the Denver-Julesburg basin of Colorado under a definitive merger agreement it has entered with Bonanza Creek Energy Inc., Denver.

SandRidge will acquire all Bonanza Creek common stock in a cash-and-stock transaction with an implied value of $746 million.

The acquisition includes 67,000 net acres in the rural oil window of the DJ basin as well as acreage in the North Park basin and producing interests in the Upper Jurassic-Lower Cretaceous Cotton Valley play of Arkansas.

Average production from the acquired properties during this year’s third quarter was 15,800 boe/d, 52% oil. Bonanza Creek estimates proved and probable oil and gas reserves at 91 million boe, 55% oil.

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