US shale player SandRidge Energy is on the hunt for more bidders interested in buying the company or some of its assets as it seeks to add value following activist investor Carl Icahn’s board takeover, writes Julia Martinez.

The Oklahoma-based company said it had received 26 bids, entering into confidentiality agreements with buyers likely to acquire the company via a reverse stock merger. However, SandRidge wants more — it has also extended a 25 June deadline for submissions and opened up the bidding process to non-US entities.

SandRidge is undergoing a strategic review process, which was opened up for discussion to the full board, bypassing an expected special committee. That board, recently taken over by the billionaire’s nominees, will conduct the review process with Jonathan Frates, an Icahn pick, as chairman.

"This review will include a comprehensive assessment of the previous capital expenditure programme and the company’s drilling programme in an effort to maximise the value of the company’s assets.

"The company will also be reviewing its expense footprint and will be performing a complete and comprehensive re-evaluation of its hedging programme," SandRidge said.

The review started in March after SandRidge rejected an all-stock offer from Midstates Petroleum, although that company is still interested in doing a deal.

Ten companies, including Midstates, are hoping to buy the company, SandRidge said. Icahn, who is the company’s largest individual shareholder with a 13.6% stake, decided he would not bid, for now.

SandRidge has also said that it is open to asset sale proposals, with 16 companies having expressed interest in the company’s North Park basin assets in Colorado where it holds around 125,000 net acres and is targeting the Niobrara formation. Another three companies are involved in potential confidentiality agreements with all but one of them also focused solely on the North Park assets.

In addition to its North Park position, SandRidge also holds 70,000 net acres in the NW Stack play in Oklahoma where it is targeting the meramac formation.

Icahn recently took control of the SandRidge board following a shareholder meeting that resulted in an eight-person slate, allotting five spots for the billionaire’s nominees, with SandRidge incumbents taking the remaining four seats.

The company became a target for Icahn last year following a botched $746 million Bonanza Creek takeover deal. The investor is known for shaking up boards — SandRidge’s chief executive and chief financial officer departed recently — and fighting for shareholder rights.

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SandRidge hopes to widen net for buyers