Rusk

SandRidge Energy Inc. has agreed to sell its East Texas natural gas properties in Gregg, Harrison, Rusk and Panola counties to NFR Energy LLC for $231 million. The properties include about 25,000 net acres with average 2011 production of approximately 25 MMcfe/d. Proceeds from the deal, which is expected to close in November, will be used to fund a portion of SandRidge’s oil-focused drilling program, the Oklahoma City, OK-based company said. As a result of the sale, SandRidge expects production to be 23.9 MMBoe in 2011 and 27.7 MMBoe in 2012. SandRidge recently increased its 2011 production guidance to 24.1 MMboe from the previously announced 23.3 MMboe.

Goodrich Petroleum Corp., which is drilling in Texas’ Panola and Rusk counties, said the Billy Harris No. 1H, a horizontal well in a portion of the Haynesville Shale, produced into sales at a 24-hour peak production rate of 12.2 MMcf/d on a 24/64-inch choke with 6,000 pounds per square inch (psi) of pressure. The well, which Goodrich owns and operates, was drilled and completed with a 5,000-foot lateral and 20 hydraulic fracturing stages. A fourth horizontal well also was completed in Goodrich’s Cotton Valley/Taylor Sand holdings. The GT Waldrop 5H, which the company also owns and operates, is in “early stages of flow back,” and to date has a 24-hour peak production rate of 4.1 MMcf/d. The producer in 2009 completed its second operated well in East Texas, the Lutheran Church 5HR in Panola County, which had an initial production rate of 9 MMcf/d on a 26/64-inch choke with 4,375 psi (see NGI, June 8, 2009).