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Recent Transactions | 9 Months Ended
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Sep. 30, 2017
Extractive Industries [Abstract] |
Recent Transactions | Recent Transactions In the third quarter of 2017, the Company entered into a $200.0 million drilling participation agreement with a Counterparty to jointly develop new horizontal wells on a wellbore only basis within certain dedicated sections of its undeveloped leasehold acreage within the Meramec formation in Major and Woodward Counties in Oklahoma (the “NW STACK”). Under this agreement, the Counterparty is paying 90% of the net exploration and development costs, up to $100.0 million in the first tranche, in exchange for an initial 80% net working interest in each new well, subject to certain reversionary hurdles, as shown in the table below. As a result, the Company is receiving a 20% net working interest after funding 10% of the exploration and development costs related to the subject wells. This will allow the Company to spend minimal additional capital while accelerating the delineation of its position in the NW STACK, realizing further efficiencies and holding additional acreage by production, potentially adding reserves. The Company operates all of the wells developed under this agreement and will retain sole discretion as to the number, location and schedule of wells drilled. The Counterparty will also have the option to fund a second $100.0 million tranche, subject to mutual agreement. Development Costs and Working Interest (“WI”) Structure
|  | Counterparty |  | SandRidge
Development Costs |  | 90% of Costs |  | 10% of Costs
Initial Working Interest |  | 80% of WI |  | 20% of WI
Reversion If Counterparty Achieves 10% IRR |  | 35% of WI |  | 65% of WI
Reversion If Counterparty Achieves 15% IRR |  | 11% of WI |  | 89% of WI

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- References No definition available. + Details
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- Definition The entire disclosure for oil and gas producing industries. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -URI http://asc.fasb.org/topic&trid=2145477 + Details
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