OKLAHOMA CITY, May 25, 2011 /PRNewswire/ -- SandRidge Energy, Inc. (NYSE: SD) ("SandRidge") today announced the filing of a Registration Statement with the Securities and Exchange Commission relating to the initial public offering of approximately $600 million in common units representing beneficial interests in SandRidge Permian Trust, a newly formed Delaware trust. The underwriters will have an option to purchase up to approximately $90 million in additional common units within 30 days of closing to cover over allotments. Application will be made to list the common units of SandRidge Permian Trust on the New York Stock Exchange under the symbol "PER."
In connection with the offering, SandRidge will convey to the trust certain royalty interests in exchange for the net proceeds from the offering and units representing approximately 40% of the beneficial interest in the trust. The royalty interests will entitle the trust to a percentage of the proceeds received by SandRidge from the production of hydrocarbons from currently producing wells and development wells to be drilled by SandRidge on approximately 15,900 net acres in the Permian Basin's Central Basin Platform in Andrews County, Texas. SandRidge intends to use the net proceeds from the offering for general corporate purposes.
Morgan Stanley & Co. Incorporated will act as lead book-running manager of the offering. SandRidge Permian Trust's offering of common units will be made only by means of a prospectus. A copy of the preliminary prospectus relating to this offering may be obtained, when available, from Morgan Stanley & Co. Incorporated, Attention: Prospectus Dept., 180 Varick Street, 2nd Floor, New York, New York 10014, prospectus@morganstanley.com, Toll-Free: (866) 718-1649.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
About SandRidge Energy
SandRidge Energy, Inc. is an oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma, with operations in the Permian Basin, Mid-Continent, West Texas Overthrust, Cotton Valley Trend in East Texas, Gulf Coast and Gulf of Mexico. In addition, SandRidge and its subsidiaries own and operate gas gathering and processing facilities, CO2 treating and transportation facilities, and drilling rig, oil field service and oil and gas marketing businesses. SandRidge's internet address is www.sandridgeenergy.com.
Statements contained in this press release that are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements, including statements regarding the completion of the proposed initial public offering of the trust and any of the terms thereof, are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of SandRidge.
CONTACT:
Kevin R. White
Senior Vice President
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102
+1 (405) 429-5515
SOURCE SandRidge Energy, Inc.
