Under the terms of the deal, SandRidge will retain a two per cent royalty interest in two exploration prospects.
The assets being acquired by Fieldwood have been estimated to hold proved reserves of 57.2 million barrels, of which 51 per cent is oil and 72 per cent is developed. Probable and possible reserves stand at 11.4 million barrels and nine million barrels, respectively.
Current daily production exceeds 25,000 barrels of oil equivalent, taking Fieldwood’s production on the Gulf of Mexico Shelf to 125,000 barrels of oil equivalent.
Fieldwood CEO Matt McCarroll said, “Given our substantial footprint across the Gulf of Mexico, which includes over 50 blocks with common interests between Fieldwood and SandRidge, I am confident that we will be able to achieve meaningful operational synergies and cost efficiencies with this combined asset base.
“Furthermore, the acquired assets add a number of near-term, high-quality drilling prospects to our existing drilling inventory. Most importantly, this transaction enhances the financial strength of the Company by providing additional liquidity, significant cash flow and further opportunities for growth.”
In July last year Fieldwood acquired Apache Corporation’s Gulf of Mexico Shelf business for $3.75bn. That deal came a month after Riverstone closed its latest power and energy fund above its $7.5bn hard cap.
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