Newspaper article THE JOURNAL RECORD

OKC-Based SandRidge Turning to Shareholders

Newspaper article THE JOURNAL RECORD

OKC-Based SandRidge Turning to Shareholders

Article excerpt

SandRidge Energy responded to calls for change, filing documents with the Securities and Exchange Commission throughout the day Friday, urging shareholders to support the company.

An investment firm, TPG-Axon Capital Management, is seeking to replace the energy company's board of directors, alleging that excessive spending and poor corporate governance is to blame for the drop in SandRidge stock in recent years. The energy company wrote in SEC documents that CEO and Chairman Tom Ward has the most experience to lead the company. At least one local investment adviser agreed that Ward has the ability to bring the company back from low share prices.

In a letter to shareholders, SandRidge wrote that the company is a leader in the Mississippi Lime rock formation in northern Oklahoma and southern Kansas. The company has drilled more than half of the 1,100 or so wells in the area and invested $500 million purchasing land leases. In 2012, SandRidge also spent more than $500 million in infrastructure to support electricity needed to drill oil wells and disposal wells necessary to inject the wastewater inevitable with drilling activity.

TPG-Axon filed documents Tuesday with the SEC seeking three things from its consent solicitation. The investment firm wants to de-stagger the board, create annual elections and allow board members to be removed with or without cause. It also wants to remove all seven board members, including Ward, and fill the vacancies with TPG-Axon's nominees, including Dinakar Singh, the investment firm's founder.

SandRidge wrote in SEC documents that Singh doesn't have the experience necessary, nor do any of the board nominees have substantial experience in oil and gas exploration and production. Two of TPG-Axon's nominees, Stephen Beasley and Edward Moneypenny, do have experience in the oil and gas industry. Since 2010, Beasley has been a board member of BPZ Resources, a natural gas pipeline compression and transportation company. Prior to 2001, Moneypenny was chief financial officer and director of Oryx Energy Corp., an exploration and production company that was later bought by Kerr- McGee.

On Thursday, another large SandRidge shareholder, Mount Kellett Capital Management, sent an open letter to the company, asking the driller to address allegations of land flipping. …

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