Fresh out of bankruptcy and shedding $3.7 billion in debt, Oklahoma City-based SandRidge Energy still faces a significant challenge. Its fourth-quarter earnings report showed a net loss of $334 million which translates into a loss of $17.61 a share.
In the fourth quarter of 2015, the company suffered losses of $665 million or $1.13 a share. So now the company prepares to expand exploration in northern Oklahoma’s STACK where it bought 13,100 acres in Woodward County. The purchase came at a cost of $48 million cash. But it increased SandRidge’s position in the STACK to 60,000 acres in Major, Woodward and Garfield counties.
However, there is a major challenge for the company. It has only one drilling rig in the state while others are in Colorado. CEO James Bennett said they plan to add one more rig to the STACK exploration efforts.
“Our track record of capturing efficiency gains can now be applied to our portfolio of Oklahoma’s NW STACK and Mississippian plays and in the North Park Basin in Colorado, where Niobrara drilling will resume mid-year.”