2009-10-26-2009-09-23

CANCELED plans to acquire company with assets in TX, OK, MT, ND, gaining 206 Bcfe proved.

SandRidge Energy Inc., Oklahoma City, (NYSE: SD) reports it no longer will seek the acquisition of bankrupt Midcontinent neighbor Crusader Energy Group Inc., Oklahoma City, (Pink Sheets: CKGRQ) in a deal valued at $230 million. Additional bidders have submitted proposals to acquire Crusader through the bankruptcy court, and SandRidge does not intend to participate in the auction triggered by those proposals. SandRidge chief executive Tom L. Ward says, "We remain committed to a disciplined approach to managing the company. While we execute our primary growth strategy of developing the West Texas Overthrust, we will continue to evaluate other opportunities that are accretive to shareholder value." Crusader filed for Chapter 11 protection under the U.S. Bankruptcy Code in the Northern District of Texas on March 30 following a borrowing-base redetermination that left the company $5 million deficient. SandRidge previously agreed to pay cash and common stock, no more than $85 million in cash and $13.45 per Crusader share and to issue warrants to purchase an additional 2 million shares of SandRidge common stock. As of year-end 2008, Crusader proved reserves were 206 billion cubic feet equivalent (73 billion proved developed producing; 17 billion proved developed nonproducing). Annual production for 2008 was approximately 10.7 billion cubic feet equivalent. It holds 1.015 million gross acres (442,000 net). SandRidge expects to receive payment of the agreed upon break-up fee of $7 million. Projected end of period common and fully diluted shares outstanding for SandRidge are updated to 183.5 million and 216.6 million from 194.3 million and 227.4 million, respectively, for 2009. For 2010, end of period common and fully diluted shares outstanding are updated to 187.3 million and 220.4 million from 198.0 million and 231.1 million, respectively. Deutsche Bank Securities was advisor to SandRidge.