US independent SandRidge Energy has thrown out more than two dozen offers to purchase the company or a portion of its properties and will move forward with developing its assets, writes Caroline Evans.

The company, which has assets in the north-west Stack and Mississippi Lime of Oklahoma and the North Park basin of Colorado, said all of the bids undervalued the company and its properties.

“When the highest cash bids were totalled, the company’s implied liquidation value was approximately $12 to $13 per share, which the board believes meaningfully undervalues the company,” SandRidge said.

The highest bids included $305 million for the company’s Mississippi Lime and “other” Oklahoma properties, as well as $70 million for SandRidge’s north-west Stack acreage, also in Oklahoma, and $100 million for assets in the North Park basin of Colorado.

SandRidge said a number of “impermanent” factors, such as a ballot initiative in Colorado that many said would effectively ban oil and gas activity in much of the state, had depressed the company’s value.

The company made the announcement following completion of a strategic review that launched in May.

During the process, Sand-Ridge’s advisers contacted 662 entities to discuss potential sales.

The review resulted in the signing of 28 non-disclosure agreements and eight offers to either buy a portion of Sand-Ridge’s assets or proposing a purchase of or merger with the entire company.

Chairman Jonathan Frates said: “At the right price, notwithstanding the conclusion of this formal strategic review process, the board is prepared to recommend a sale of the company or certain of its assets, or the consummation of an appropriate merger opportunity.

“The value of the company’s current reserve development plan exceeds recent trading values and certainly these offers, which grossly undervalue the company.

“Unfortunately, our properties are located in areas that are currently out of favour and are therefore meaningfully undervalued.

“We will work assiduously over the next few years to realise the true value of the business.”

SandRidge said it would concentrate its efforts on developing its assets and pursuing “opportunistic” acquisitions.

“The company will continue to focus on cost reductions, margin improvements and divestment of non-core properties while moving forward with a profitable plan for organic growth,” Sand-Ridge said.

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SandRidge Energy rejects more than two dozen offers from suitors