SandRidge Energy withdraws from Crusader Energy asset sale process

By Caroline Salls

Pittsburgh, Nov. 12 - SandRidge Energy, Inc. said it has withdrawn from Crusader Energy Group's asset sale process, according to a SandRidge news release.

According to the release, additional bidders have submitted proposals to acquire Crusader, and SandRidge "does not intend to participate in the auction triggered by those proposals."

"We remain committed to a disciplined approach to managing the company," SandRidge chief executive officer Tom L. Ward said in the release.

"While we execute our primary growth strategy of developing the West Texas Overthrust, we will continue to evaluate other opportunities that are accretive to shareholder value."

SandRidge said it expects to receive payment of the agreed upon $7 million break-up fee from Crusader.

As previously reported, SandRidge entered into an agreement in September to buy all of the shares of common stock to be issued on the effective date of Crusader's plan of reorganization for $230 million in cash and common stock.

Under the deal, Crusader and its subsidiaries would have become indirect, wholly owned subsidiaries of SandRidge.

Crusader, an Oklahoma City-based oil and gas company, filed for bankruptcy on March 30, 2009 in the U.S. Bankruptcy Court for the Northern District of Texas. Its Chapter 11 case number is 09-31797.

SandRidge is a natural gas and crude oil company based in Oklahoma City.

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