Oklahoma City’s SandRidge Energy on Monday announced the $47 million sale of its North Park Basin Assets in Colorado to Gondola Resources, LLC, a Delaware limited liability company backed by Fulcrum Energy Capital Funds.
It is the latest divestiture made by the Oklahoma energy company.
Gondola is based in Frisco, Texas and formed in 2015 and the effective date of the sale goes back to Oct. 1 of this year. Closing of the sale is not expected until the first quarter of 2021.
SandRidge explained that its North Park Basin assets accounted for less than 10% of its production during the quarter that ended Sept. 30. 2020. The production also proved to be less than 10% of SandRidge’s Proved Developed Reserves as of the end of last year.
“We believe this transaction significantly enhances shareholder value. It monetizes an asset the value of which, we believe, has not been adequately reflected in our stock price and which had become increasingly non-core with the Company’s shift to a cash optimization-focused strategy,” stated Carl Giesler, SandRidge’s President and CEO in making the announcement.
SandRidge last week finalized its 2016 bankruptcy filing. The company also sold its downtown Oklahoma City high-rise headquarters in a $35 million sale to the state of Oklahoma in the fall. The company recently moved into leased office space in Oklahoma City’s Entertainment District where it is now headquartered.
The announcement was also filed with the Securities and Exchange Commission.
Jefferies LLC provided a financial fairness opinion to the Company. Winston & Strawn LLP acted as legal advisor to the Company.
Source: SandRidge/SEC
