SandRidge Buys NEG Oil for $1.26 Billion

Oklahoma-basded SandRidge Energy, Inc. has announced the closing of the company’s previously announced acquisition of NEG Oil & Gas LLC from American Real Estate Partners, L.P.
SandRidge paid approximately $1.5 billion for NEG properties consisting of substantial West Texas acreage and production that complements SandRidge operated interests, as well as significant producing holdings in the Texas Gulf Coast, Gulf of Mexico and East Texas.
SandRidge did not acquire any equity ownership of National Energy Group, Inc. in the transaction.
In the acquisition, SandRidge issued approximately 12.8 million shares of its common stock to a subsidiary of AREP, paid $1.025 billion cash, and assumed approximately $250 million of debt of NEG Oil & Gas, net of cash.
After this transaction, the principal shareholders of SandRidge, Ward and Mitchell, will beneficially own approximately 27.9% and 20.1% of the outstanding common stock of SandRidge.

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