SandRidge Temporarily Shuts In Production in Gulf, Galveston Bay

Galveston, Texas
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SandRidge Energy, Inc. on Wednesday announced two temporary shut-ins of production that are beyond its control. The shut-ins are in the Gulf of Mexico and at the Company's Eagle Bay Field. The production impact is estimated to be 21 million cubic feet per day of natural gas equivalent for roughly 21 days and 18 million cubic feet per day of natural gas equivalent for roughly 31 days, respectively. The Company expects the total production lost should be about 1 bcfe.

The first shut was caused by a small rupture in the High Island Pipeline System (HIPS) operated by Plains All American Pipeline L.P. On December 24th, Plains detected a pressure loss in HIPS, necessitating the shut down. The damage to HIPS was caused by a ship's anchor striking the pipeline while trying to moor in the area, where the water depth is about 90 feet deep. Plains estimates it will take seven days to repair the pipeline, once approval to begin repairs is obtained.

The second shut in is scheduled for mid-January to mid-February for maintenance work on a third party line. The Company will temporarily shut in 18 million cubic feet of per day of natural gas equivalent at the Eagle Bay Field in Galveston Bay, Texas on January 15th. The scheduled shut in will permit Kinder Morgan, which operates the 16" pipeline that connects the field to the Company's Winnie Plant in Jefferson County, to make repairs to the system. Those repairs are expected to be completed by February 16th.

SandRidge is an oil and natural gas company with its principal focus on exploration and production. SandRidge also owns and operates drilling rigs and a related oil field services business operating under the Lariat Services Inc. brand name; gas gathering, marketing and processing facilities; and, through its subsidiary PetroSource Energy Company, CO2 treating and transportation facilities and tertiary oil recovery operations. SandRidge focuses its exploration and production activities in West Texas where it has assembled a large, focused acreage position, the Cotton Valley Trend in East Texas and the Gulf Coast. SandRidge also owns oil and gas properties in the Piceance Basin of Colorado, the Gulf of Mexico, and the Anadarko and Arkoma Basins of Oklahoma and Arkansas.

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