SandRidge (SD) Lands $1 Billion in Repsol Venture

In an announced joint venture with Spanish energy company Repsol YPF, SandRidge Energy Inc. (NYSE:SD) said it'll generate about $ billion in the oil acreage connected to the deal.

The Madrid, Spain-based Repsol subsidiary has agreed to acquire 25 percent interest in the Extension Mississippian play, and approximately a 16 percent interest in the Original Mississippian play.

Repsol's 25 percent interest is in about 250,000 net acres, and the 16 percent interest entails 113,636 net acres.

Sandridge will receive $250 million in cash and the remainder in the drilling carry, which includes completion and drilling costs.

Estimates by Sandridge are for the carry obligation to be completed within a period of three years.

The deal should close sometime in the first quarter.

Sandridge closed Thursday at $8.21, gaining $1.54, or 23.09 percent.