Sandridge sheds Permian assets

Cheer: analysts praise Sandridge sale of non-core Permian assets

Reuters

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Luke Johnson

 04 June 2012 18:32 GMT

US independent Sandridge Energy has sold its its oil-recovery unit in the Permian basin to Midland-based Trinity CO2 Investments for $130 million.

Trinity, a carbon dioxide pipeline and supply company that is part of Morgan Stanley Global Private Equity, will take over Sandridge Tertiary, which has proved reserves of 24 million barrels of oil equivalent in West Texas.

Sandridge said the divested properties currently produce about 1100 boe per day. They are located primarily in the Central Basin Platform of Gaines County and include about 60 wells.

Trinity also acquired SandRidge's Wellman pipeline as part of the all-cash deal.

“The acquisition of Sandridge Tertiary represents a unique opportunity to combine an attractive upstream EOR business with…

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