SandRidge Energy, Inc. and Arena Resources, Inc. have agreed to amend the merger agreement under which SandRidge will acquire Arena. Pursuant to the revised terms, each outstanding share of Arena will be converted in the merger into the right to receive 4.7771 shares of SandRidge common stock plus $4.50 per share in cash.

The board of directors of each company has unanimously approved the amendment to the merger agreement and recommends that the respective stockholders vote in favor of the transaction.

The amended agreement provides, among other things, that Arena may solicit other offers for the company for a 30 day period ending on July 1. In the event Arena accepts a superior proposal, the termination fee will be reduced from $50 million to $39 million.

Tim Rochford, Chairman and Co-Founder of Arena, noted: "The amended merger agreement allows for a "go-shop" period, an increase in the cash consideration, and a lower termination fee. This amendment should enable Arena shareholders to receive maximum consideration for their shares. We are confident that upon completion of this period, we will be able to close the transaction."

Tom Ward, Chairman and CEO of SandRidge, commented, "We continue to believe the combination realizes numerous synergies and creates a stronger platform from which to grow production across a balanced and concentrated West Texas asset base."

Tags: Arena Resources, SandRidge Energy