SandRidge to Acquire Arena Resources

Oil and gas exploration company SandRidge Energy will pay $1.6 billion in cash and stock for rival Arena Resources, according to <I>The Wall Street</I>.
By TSC Staff ,

OKLAHOMA CITY (TheStreet) -- SandRidge Energy (SD) - Get Report is acquiring rival Arena Resources (ARD) - Get Report for $1.6 billion, according to a published media report.

The deal further expands SandRidge's reach into conventional oil-field assets from its original focus on natural gas, according to the report, published Sunday on

The Wall Street Journal's

Web site.

SandRidge of Oklahoma City will pay $2.50 in cash and 4.77 of its shares for each share of Tulsa-based Arena, the report said.

That's a 17% premium from Arena's $34.26 closing level Thursday.

SandRidge shares closed Thursday up 15 cents at $7.85. U.S. stock markets were closed Friday in observance of the Good Friday holiday.

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The deal is part of a strategic change SandRidge CEO Tom Ward decided to make in late 2008, according to the report. Back then, Ward concluded that natural gas prices would stay low for years, so he decided to begin looking for oil assets, the report noted.

Ward will be CEO of the combined company, and Arena's current management and board will have no role in the merged company, the report said.

This article was written by a staff member of TheStreet.com.

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