U.S. oil and gas exploration and production firm SandRidge Energy Inc has struck a deal to buy bankrupt rival, Crusader Energy Group, for $230 million, in a cash and stock deal that would give it additional acreage in the Anadarko and Permian basins.
SandRidge said on Tuesday Crusader and its subsidiaries would become indirect, wholly-owned subsidiaries of the Oklahoma City-based company and all the outstanding equity interests in Crusader would be cancelled.
Crusader Energy filed for Chapter 11 bankruptcy protection in March, listing assets of about $750 million and debts of about $325.8 million as of Sept. 30, 2008.
SandRidge said it would pay up to $85 million in cash and issue common shares valued at $13.45 per share.
We believe this transaction will be accretive to SandRidge in terms of reserves, production and cash flow and provide new drilling opportunities for the company, SandRidge CEO Tom Ward said in a statement.
Shares of SandRidge closed at $13.0 on Tuesday on the New York Stock Exchange. (Reporting by Ajay Kamalakaran in Bangalore; Editing by Anshuman Daga)