SandRidge Energy to buy Gulf of Mexico-focused Dynamic Offshore for $1.28 bn
02 February 2012
US-based oil and gas producer SandRidge Energy today said that it will acquire Gulf of Mexico-focused Dynamic Offshore Resources for about $1.28 billion in cash and stock, the largest sale of oil and gas assets in the region since BP's massive oil spill in April 2010.
The deal is the largest for the Gulf of Mexico oil-and-gas fields since British oil giant BP's Deepwater Horizon rig exploded in April 2010, making it the biggest oil spill in US history.
Oklahoma City-based SandRidge will pay about $680 million in cash and about 74 million of its shares at $8.02 each, and expects the deal to close in the second quarter.
Backed by private equity firms Riverstone Holdings and the Carlyle Group, Houston-based Dynamic Offshore is an exploration and production company formed in 2008 to focus on the acquisition and development of producing oil and natural gas properties in the Gulf of Mexico.
Its assets are mainly located in shallow waters in water depths of less than 300 feet. Dynamic owns a 49-per cent interest in and operates the deepwater Bullwinkle field and associated platform, located in approximately 1,350 feet of water.
Dynamic, which has proved reserves of 62.5 million barrels of oil equivalent, currently produces about 25,000 barrels a day.