Sandridge

SandRidge Energy Inc. has signed a letter of intent with an undisclosed independent producer to sell some of its deep acreage rights in the natural gas-rich Cana Shale in Oklahoma for $140 million in cash. The Oklahoma City-based producer would retain the shallow drilling rights; it said has no associated proved reserves or current production from the deep rights to be sold. Proceeds from the sale, to be completed before the end of September, would be used to pay down existing debt. The transaction is not expected to affect a pending merger with Arena Resources Inc. (see NGI, April 12).