The management intends to deal with this by reducing rig count and making cuts in the CapEx program. The operational rigs have already been reduced to seven, as of the beginning of May in comparison to 35 at the end of last year. Moreover, SandRidge Energy Inc. (NYSE:SD) is also planning to raise about $200 million from asset sales this year in order to improve its liquidity. The company’s cost cutting plan involves reaching $2.4 million per lateral in the second half of this year. Currently the cost stands at $2.7 million. This would improve the rate of return to 50% from the current 37%.
Besides Omega, other funds too have been disposing off their stakes in SandRidge Energy Inc. (NYSE:SD). Among those that we track, 20 firms had an aggregate investment of $241.42 million in the company at the end of March, as compared to 24 funds with $266.12 million at the end of the previous quarter. Prem Watsa is the largest stockholder among these funds, holding some 50.89 million shares of SandRidge Energy Inc. (NYSE:SD) valued at $90.58 million as of the end of March.