Sep. 24--SandRidge Energy Inc. is taking an admittedly atypical approach to developing new assets during the tough times facing oil and gas companies.

The Oklahoma City company Wednesday said it is acquiring debt-ridden Crusader Energy Corp., which filed for bankruptcy protection in March.

SandRidge Chief Executive Officer Tom L. Ward said many companies are trying to sell assets to raise capital to drill new wells, but that isn't the only option.

"This is the perfect time to make a niche acquisition with assets that can favorably compete against the cost to drill and develop on conventional assets," Ward said Wednesday in a conference call.

SandRidge will pay $230 million in cash and stock for all shares of the bankrupt Crusader, which struggled after going public in June 2008.

Crusader and seven affiliates sought Chapter 11 relief from its creditors in March, listing $326 million in debts as of last September.

Judge's OK needed The proposed sale will go forward once a bankruptcy judge in Dallas approves Crusader's reorganization plan, making Crusader and its subsidiaries into subsidiaries of SandRidge.

"We believe this transaction will be accretive to SandRidge in terms of reserves, production and cash flow and provide new drilling opportunities for the company," Ward said in a news release.

The deal is expected to be finalized before the end of the year. It will beef up SandRidge's positions in the Anadarko basin of western Oklahoma as well as within the Permian Basin in west Texas.

-----

To see more of The Oklahoman, or to subscribe to the newspaper, go to http://www.newsok.com.

Copyright (c) 2009, The Oklahoman, Oklahoma City

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:SD,

A service of YellowBrix, Inc.