Penny Stocks to Watch – SandRidge Energy Inc.  (Public, NYSE:SD)

SandRidge Energy, Inc. (SandRidge) is an independent Texas based oil and natural gas company. Its areas of focus in West Texas are the Permian Basin as a part of the West Texas Overthrust; known as (the WTO). SandRidge Energy Inc. is currently engaged in development and production activities as well in the Mid-Continent area of Oklahoma and Kansas.

The company also owns and operates other interests in the Mid-Continent, Cotton Valley Trend in East Texas, Gulf Coast and Gulf of Mexico. On July 16, 2010, it completed acquisition of Arena Resources, Inc. (Arena). On August 26, 2010, it sold certain deep acreage rights in the Cana Shale play in Western Oklahoma. On December 10, 2010, it sold approximately 40,000 net acres of non-core assets in the Avalon Shale and Bone Spring reservoirs of the Permian Basin. On January 6, 2011, it sold its Wolfberry assets in the Permian Basin.

The WTO, which includes the Pinon gas field, is a natural gas-prone region in Pecos County and Terrell County, Texas, where it has approximately 501,100 net acres under lease. As of December 31, 2010, its area of focus in the Mid-Continent area was the Mississippian formation, where it had approximately 573,800 net acres under lease. It also owns and operates other interests in the Mid-Continent, Cotton Valley Trend in East Texas, Gulf Coast and Gulf of Mexico.

On July 16, 2010, the Company completed acquisition of Arena Resources, Inc. (Arena). On August 26, 2010, it sold certain deep acreage rights in the Cana Shale play in Western Oklahoma. On December 10, 2010, it sold approximately 40,000 net acres of non-core assets in the Avalon Shale and Bone Spring reservoirs of the Permian Basin. On January 6, 2011, SandRidge sold its Wolfberry assets in the Permian Basin.

The third quarter results show SandRidge Energy Inc. posting a quarterly profit. This was helped by an increase in output, but the company slightly lowered its full-year production forecast. The company cut its output forecast to 23.4 million barrels of oil equivalent (mmboe) from 23.9 mmboe, citing constraints at one of its facilities, and underperformance in the Gulf Coast and Gulf of Mexico region. Production guidance for 2012 remains unchanged at 27.7 mmboe however, according to a spokesperson for SandRidge.

SandRidge Energy Inc.  (Public, NYSE:SD) Shares: 43.81M Range: 2.65 – 2.88 52 week: 2.02 – 8.04