Sandridge Energy Buys Area Oil Properties

OKLAHOMA CITY (AP) - SandRidge Energy Inc. says it has agreed to buy Permian Basin oil and gas properties from Forest Oil Corp. for $800 million.

Oklahoma City-based SandRidge Energy announced on Monday it would acquire the west Texas properties, which cover more than 90,000 net acres.

The purchase will increase SandRidge's leasehold in the Permian Basin to more than 130,000 net acres. The independent oil and natural gas company says about $720 million of the purchase price is attributable to reserves and $80 million to undeveloped acreage, equipment and other assets.

The acquired acreage has more than 1,200 drilling locations. SandRidge says the deal with Denver-based Forest Oil should close by Dec. 31.

Earlier this month, SandRidge said it was dropping a $230 million bid to buy oil driller Crusader Energy Group Inc.