"This asset sale is part of the capital plan to execute our three-year strategy of tripling EBITDA, (Earnings Before Interest, Taxes, Depreciation and Amortization), doubling oil production and lowering our debt ratio by the end of 2014 by continuing to develop high rate of return oil wells in the Central Basin Platform and the Mississippian play in the Mid-Continent," Ward said in a prepared statement.

The company signed a purchase and sale agreement with Houston-based NFR to sell natural gas properties in Gregg, Harrsion, Rusk and Panola counties. It includes about 25,000 net acres with an average 2011 production of approximately 25 MMcfed (millions of cubic feet per day) of natural gas, SandRidge reported. The deal is expected to close in November.

SandRidge plans to use the proceeds of the sale to fund a portion of its oil focused drilling program and expects production of 23.9 million barrels of oil equivalent in 2011 and 27.7 MMBoe in 2012.

NFR is led by CEO David Sambrooks who, before joining the company in 2007, served as vice president and general manager of Devon Energy’s southern division, and prior to that was in Devon’s international division.

SandRidge shares ended the day up 17 cents to close at $6.49.