SandRidge to acquire assets in Cherokee Play

SandRidge Energy has signed a definitive agreement to acquire production assets and leasehold interests in Cherokee Play, within the Mid-Continent region, for cash consideration of $65 million. The transaction strengthens the company’s presence in an area where it has been operating since 2024.

The transaction expands production in Mid-Continent

The acquisition includes net production of approximately 3.0 MBoed, with approximately 43% oil. It also incorporates approximately 7,000 net leasehold acres, interests in 21 producing wells, and eight proved development locations.

Additionally, the assets are located in areas contiguous to SandRidge’s current drilling and leasehold operations. This proximity enables integration of the new production into its operational program with greater efficiency and adds development inventory in an area already familiar to its technical teams.

More oil in the production mix

Furthermore, SandRidge expects the new assets to increase key metrics such as production, EBITDA, and free cash flow. The company also anticipates that the incorporation of production with a higher oil weighting will strengthen its liquids mix on a pro forma basis.

The agreement has an effective date of May 1, 2026, and closing is expected in the third quarter of 2026. SandRidge plans to finance the transaction with available cash, maintaining financial capacity for future strategic initiatives and its capital return program.

Cherokee Play gains weight in SandRidge’s strategy

Grayson Pranin, President and Chief Executive Officer of SandRidge, emphasized that the company seeks to continue expanding its presence in Mid-Continent through quality complementary assets. He also noted that the team has achieved solid results in Cherokee since entering the area in 2024.

Additionally, Vince Intrieri, Chairman of the Board of Directors, indicated that this is SandRidge’s second significant acquisition in Cherokee Play. The incorporation of producing wells, leasehold acres, and drilling inventory strengthens the company’s position in a key area for its growth.

A strategic oil and gas asset

Cherokee Play is located primarily in the Anadarko Basin West, with activity concentrated in areas of Oklahoma. Its development has attracted interest due to its oil and gas potential, especially for operators seeking to add scale through selective acquisitions.

With this transaction, SandRidge Energy reinforces its growth strategy in upstream assets, increases its exposure to liquid production, and consolidates its portfolio in Mid-Continent.

Source: https://www.prnewswire.com/

Photo: SandRidge Energy