UPDATE 1-SandRidge sells non-core oil assets for $110 mln

* Gets $88 million on deal close

* $22 mln in escrow till Q1 2011

* Assets sold have no production, proved reserves

Dec 10 (BestGrowthStock) – Oil and gas exploration company
SandRidge Energy Inc (SD.N: ) sold some non-core assets in the
Permian Basin in Texas for $110 million as it focuses more on
oil.

With oil prices rising and natural gas prices falling, U.S.
exploration and production companies are shifting exploration
dollars to acreage containing crude oil-rich or natural gas
with a high liquids content. [ID:nN03288352] [ID:nSGE6A20LW]
[ID:nSGE6A30KU]

The Bone Spring asset package includes about 40,000 net
acres in the Permian Basin, but there is no production or
proved reserves associated with the assets, SandRidge said in a
statement.

SandRidge got cash proceeds of $88 million on the closing
of the deal and said it would get $22 million, which is
currently held in escrow, in the first quarter of 2011.

SandRidge plans to increase its oil production by about
half in 2011 and said the liquid will generate 75 percent of
2011 sales.

The company had earlier said it would sell some non-core
Permian Basin oil assets to fund its 2011 capital expenditures.
[ID:nSGE6A409U] Since announcing those plans in November, the
company’s shares have risen about 4 percent and closed at $6.08
on Thursday on the New York Stock Exchange.
(Reporting by Savio D’Souza in Bangalore; Editing by Anne
Pallivathuckal)

UPDATE 1-SandRidge sells non-core oil assets for $110 mln