December 22, 2011 / 8:48 PM / in 9 years

UPDATE 1-SandRidge Energy signs $1 bln JV deal with Repsol

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Dec 22 (Reuters) - SandRidge Energy Inc sold part of its interest in the liquids-rich Mississippian play to Spanish oil and gas giant Repsol YPF in a deal that could be worth up to $1 billion, sending its shares up 21 percent.

Repsol will acquire 363,636 net acres in the Mississippian play for $250 million in cash.

Repsol will pay the remaining amount by assuming SandRidge’s capital expenditure. SandRidge expects these payments to be made over the next three years.

As a result, SandRidge lowered its capital expenditure guidance for 2012 to $1.6 billion from $1.8 billion.

The deal is expected to close in the first quarter.

SandRidge shares were trading up 21 percent at $8.11 in late trade on Thursday on the New York Stock Exchange. (Reporting by Divya Lad in Bangalore; Editing by Viraj Nair)

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