SandRidge Energy (NYSE:SD) Increasing Oil Production by 50 Percent in 2011

SandRidge Energy (NYSE:SD) announced its goal for 2011 oi production is to increase it by 50 percent.

That has left Susquehanna feeling bullish on Sandridge, as they believe it'll attract new investment over time.

As far as the short term, the increase in production will also increase expenditures, and that has resulted in Susquehanna lowering their EPS estimates on them for 2011 and 2012. For full year 2011, they've dropped it from $0.25 to $0.07, and for full year 2012 from $0.41 to $0.13.

The strategy put forth by Sandridge is to drill shallower wells at a quick pace which will cost them $730,000 a well and generate 40/bopd each.

SandRidge closed Monday at $6.82, up $0.17, or 2.56 percent. Susquehanna increased their price target on them from $7 to $9.