• Privately held SandRidge Energy Inc. (formerly Riata Energy Inc.), Oklahoma City, has acquired NEG Oil & Gas LLC, a subsidiary of American Real Estate Partners LP (AREP), Mt. Kisco, N.Y., (NYSE: ACP) for some $1.5 billion in cash and stock.

SandRidge issued 12.8 million common shares at $19 each and $1 billion in cash, of which $10 million was paid to AREP. SandRidge also assumed approximately $250 million of NEG debt.

The transaction included all working interests of NEG Holding LLC held by National Energy Group Inc., Dallas (OTCBB: NEGI). The deal does not include any equity ownership of National Energy Group.

SandRidge chairman and chief executive Tom L. Ward says, "This transaction marks a major milestone in our company's growth. We now have an over 83% average working interest in the Pinon Field with more than 245,000 net acres of land in the West Texas Overthrust Belt, which will continue to be our largest focus."

SandRidge financed the cash portion of the deal with $550 million in convertible preferred stock and common units, an $850-million unsecured bridge loan and a new senior, secured, revolving credit facility. Banc of America Securities LLC was financial advisor to SandRidge.



• Edge Petroleum Corp., Houston, (Nasdaq: EPEX) plans to acquire properties in 13 counties in southeastern and South Texas from an undisclosed private company for $320 million in cash. The assets involve 143 gross producing wells (72 net), and interest in some 17,000 gross developed acres (11,000 net) and 56,000 gross undeveloped acres (16,000 net).

Estimated net production is approximately 31 million cu. ft. of gas equivalent per day (86% gas). Proved reserves are approximately 105 billion equivalent, including 35 billion equivalent proved developed producing, 30 billion proved developed nonproducing and 40 billion proved undeveloped. Possible reserves are 45- to 50 billion equivalent.



• Aera Energy LLC, Bakersfield, Calif., plans to acquire 71% interest in the Beta Unit offshore California from Pacific Energy Resources Ltd., Long Beach, Calif., (Toronto: PFE) for an undisclosed price. Proved reserves are some 20 million bbl. of oil and 3 billion cu. ft. of gas; probable reserves are approximately 11.61 million bbl. and 1.93 billion cu. ft. Pacific Energy will be operator.



• GE Energy Financial Services, Stamford, Conn., and Sunland Resources LLC, Shreveport, La., have acquired reserves in northern Louisiana from a consortium led by Shreveport-based Caruthers Producing Co. Inc. for $101 million. The assets include 26 producing wells in the Caspiana and Black Creek fields. Sunland Production Partners LP is operator. Production is 55% gas.



• Isramco Inc., Houston, (Nasdaq: ISRL) plans to acquire properties in Texas and New Mexico from privately held Five States Energy Co. LLC, Dallas, for $100 million.

The assets involve some 660 producing wells. Net proved developed reserves are approximately 2 million bbl. of oil, 28 billion cu. ft. of gas and 1.6 million bbl. of gas byproducts.

Separately, EV Energy Partners LP, Houston, (Nasdaq: EVEP) plans to acquire properties in North Louisiana, East Texas, Western Oklahoma and West Texas for $28.5 million from investment funds of Five States Energy Co. LLC, Dallas. The properties involve 273 wells with net production of 3.1 million cu. ft. of gas equivalent. Estimated proved reserves are 14.4 billion equivalent (62% gas).



• Tekoil & Gas Corp., The Woodlands, Texas, (Pink Sheets: TKGN) plans to acquire four properties in Galveston and Chambers counties, Texas, from Texas-based Masters Resources LLC and Masters Oil and Gas LLC for up to $80 million.

The assets include interests in 48 producing wells in the Trinity Bay, Redfish Reef, Fishers Reef and North Point Bolivar fields in Galveston Bay. Net production is 5.1 million cu. ft. of gas equivalent per day. Net proved reserves are 77 billion cu. ft. equivalent.



• PetroHunter Energy Corp., Denver, (OTCBB: PHUN) plans to acquire all of the interests in the Powder River Basin of Wyoming and Montana of Galaxy Energy Corp., Denver, (Amex: GAX) and subsidiary Dolphin Energy Corp. for $25 million in stock and $20 million in cash. The assets include an average 86% working interest in 197 wells. Production is 850,000 cu. ft. of gas per day from 22 wells.



• Denbury Resources Inc., Dallas, (NYSE: DNR) plans to acquire an interest in the Hastings Field near Houston from a subsidiary of Venoco Inc., Denver. Denbury will pay $37.5 million at closing of an option agreement; additional payments will total $12.5 million during the next two years. The assets include an approximate 89% working interest in the West Hastings Unit and an approximate 100% working interest in the East Hastings Field. Production from the field is 2,400 bbl. of oil per day.

• Petrobras America Inc., Houston, has acquired 20% working interest in the Cottonwood project in the Gulf of Mexico from Mariner Energy Inc., Houston, (NYSE: ME) for US$31.8 million. The project includes Garden Banks Block 244, which features two subsea wells. Petrobras America is operator.



• Petro Resources Corp., Houston, (Amex: PRC) plans to acquire an interest in 15 fields in the Williston Basin in North Dakota from an undisclosed private company for cash and stock. The assets consist of a 50% interest in approximately 15,000 acres and 150 wells with current net production of approximately 520 bbl. of oil per day. Net reserves are some 9 million bbl. The seller will remain the operator.



• Swift Energy Co., Houston, (NYSE: SFY) plans to acquire operated wells and land in Lake Washington Field in Plaquemines Parish, La., from an undisclosed seller for $20.4 million. Interests range from 40% to 100% (68% average net revenue interest). Production is some 275 net BOE per day (86% oil) and proved reserves are 1 million BOE (36% proved developed). Probable-plus-possible reserves total 1.7 million BOE.

Separately, Swift has acquired additional interest in the South Bearhead Creek Field in Beauregard Parish, La., from undisclosed sellers for $4.5 million, bringing its working interest in the field to nearly 100%. Reserves are 5.2 billion cu. ft. of gas equivalent.



• Ignis Petroleum Group Inc., Dallas, (OTCBB: IGPG) has acquired 45% interest in acreage, producing properties and a gas-gathering and -treating system in the St. Jo Ridge Field in Montague and Cooke counties, Texas, from privately owned W.B. Osborn Oil & Gas Operations Ltd., San Antonio, and St. Jo Pipeline Ltd. for $18.5 million. The assets involve 13 producing wells, and net proved reserves of 1.1 million BOE (500,000 proved developed, 50% oil). W.B. Osborn will remain operator.



• PetroQuest Energy Inc., Lafayette, La., (NYSE: PQ) has sold interests in 17 mature Gulf of Mexico fields to an undisclosed private company for approximately $17 million. Estimated proved reserves total some 8.7 billion cu. ft. of gas equivalent, and the properties have a substantial near-term abandonment obligation.



• South Texas Oil Co., Austin, (OTCBB: STXX) plans to acquire a 50% to 75% working interest in approximately 20,000 acres in the D-J Basin in northeastern Colorado for approximately 4.8 million restricted shares valued at approximately $15 million.



• New Frontier Energy Inc., Denver, (OTCBB: NFEI) plans to acquire a 36.67% working interest in 11 gas wells and 32,000 acres in the Slate Dome Field in northwestern Colorado and southwestern Wyoming from the operator for $8 million. Estimated proved reserves are 8.2 billion cu. ft. of gas. Pro forma, New Frontier will own 66.67% working interest in the field.



• JMG Exploration Inc., Calgary, (NYSE: JMG) plans to sell its working interest in land in North Dakota for approximately C$5.5 million. The target is Bakken and the sale excludes properties in which JMG is developing its Midale play.



• NGAS Resources Inc., Lexington, Ky., (Nasdaq: NGAS) has sold its lease position in Dunn County, North Dakota, to an undisclosed buyer for $4.8 million. The noncore assets include 100% working interest in undeveloped leases totaling 18,441 gross acres (14,865 net) in the Bakken play. NGAS will retain an overriding royalty interest in the lease position of up to 1.35%.



• Houston-based Patriot Exploration Co. Inc. plans to acquire an interest in 26,000 gross acres (22,000 net) in the Barnett Shale in Erath County, Texas, from Carrizo Oil & Gas Inc., Houston, (Nasdaq: CRZO) for $2.5 million. Carrizo is operator. Patriot may invest another $35 million or more as work progresses.



• Jay Petroleum LLC, a subsidiary of Isramco Inc., Houston, (Nasdaq: ISRL) and Delek Energy US Inc., a subsidiary of Delek Group, Netanya (South), Israel, (NYSE: DK) have acquired working interest in 2,780 nonproducing Barnett Shale acres in Wise County, Texas, from McCommons Oil Co., Dallas, for $2.4 million.



• Teton Energy Corp., Denver, (Amex: TEC) plans to acquire additional leasehold interest in the Denver-Julesburg Basin in Nebraska from an undisclosed seller. The assets include 56,000 gross acres (42,000 net). Some 33,600 net acres are within Teton's area of mutual interest with Noble Energy Inc., Houston, (NYSE: NBL) and will be offered to Noble under the AMI terms.

• Win Energy Corp., Calgary, (Toronto Venture: WNR) plans to acquire a lease covering 93,603 gross acres (79,009 net) in Montana from an undisclosed private company for US$2 million.



• Marathon Oil Co., Houston, (NYSE: MRO) has entered a three-year lease and a joint-operating agreement to explore approximately 9,000 acres in Freestone County, Texas, with Wentworth Energy Inc., Palestine, Texas (OTCBB: WNWG).



• Bow Valley Energy Ltd., Calgary, (Toronto: BVX) has entered a joint venture with Alaska Venture Capital Group LLC and its operating subsidiary Brooks Range Petroleum Corp. to earn a 20% working interest in an exploration program on the North Slope of Alaska. The property includes approximately 140,000 gross acres, and Bow Valley plans to drill two wells and acquire seismic information.



• Cascadia Energy Corp., the operating subsidiary of Torrent Energy Corp., Seattle, (OTCBB: TREN) has acquired a 60% interest on a 25,664-acre lease in southwestern Washington. Cascadia's current acreage is now 40,637 acres under four- to six-year terms and 115,237 acres under lease-option terms. (For more on activity in Washington state, see "E&P Momentum," Oil and Gas Investor, December 2006.)



• Goodrich Petroleum Corp., Houston, (NYSE: GDP) has entered a farm-out agreement covering 16,000 acres in 33 sections (21,000 gross acres) in the Alabama Bend Field of Bienville Parish, La.



• Derek Oil & Gas Corp., Vancouver, (Pink Sheets: DRKOF) plans to acquire an interest in the LAK Ranch Field in Weston County, Wyo., from partner Ivanhoe Energy Inc., Vancouver, (Nasdaq: IVAN; Toronto: IE) for US$800,000.



• Trans Energy Inc., St. Marys, W.Va., (OTCBB: TENG) has acquired the J.B. Dewhurst lease in West Virginia. The lease involves seven wells on 2,200 acres in Grant District, Wetzel County.



• Exxel Energy Corp., Vancouver, (Toronto Venture: EXX) has canceled its acquisition of a 25% working interest in the Rifle Creek project in Garfield County, Colo., from Galaxy Energy Corp., Denver, (Amex: GAX) for US$40 million in cash and stock.