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Mount Kellett Sends Second Letter to the Board of SandRidge Energy



      Mount Kellett Sends Second Letter to the Board of SandRidge Energy

PR Newswire

NEW YORK, Jan. 17, 2013

NEW YORK, Jan. 17, 2013 /PRNewswire/ -- Mount Kellett Capital Management LP
("Mount Kellett") today sent a letter to SandRidge Energy, Inc.'s (NYSE: SD)
("SandRidge") Board of Directors regarding allegations that SandRidge's
Chairman and Chief Executive Officer, Tom Ward, and his son engaged in
persistent front running of the company.  Full text of the letter follows:

January 17, 2013

SandRidge Energy Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102
Attn: Board of Directors

Dear Sirs,

Mount Kellett Capital Management LP ("Mount Kellett" or "we") is a
multi-strategy private investment firm focused on global value, special
situations and opportunistic investing. Mount Kellett and funds and accounts
under common control collectively have beneficial ownership in SandRidge
Energy Inc. ("SandRidge" or the "Company") of 22.2 million shares, or
approximately 4.5%, of the Company's outstanding common stock. 

We have reviewed with intense concern the allegations made by TPG-Axon in its
letter to the Board of Directors of the Company dated December 24, 2012 and
its proxy materials dated January 15, 2013 that Tom Ward, the Company's
Chairman and Chief Executive Officer and a trust ("WCT") purportedly run by
his son engaged in "persistent front running of the Company."  The letter and
the proxy contain serious and specific allegations that Mr. Ward and his son
acquired mineral rights from third parties ahead of the Company and then
"flipped" them to SandRidge or other oil and gas companies at a profit, often
even retaining a participation in future wells in transactions with
SandRidge.  That WCT could profit from acreage sales to other oil and gas
companies at a time when SandRidge was looking to sell or joint venture
acreage to delever itself, put WCT in direct competition with the Company and
potentially siphoned value from SandRidge shareholders and into the pockets of
the Ward family.

WCT had its principal office at SandRidge until 2011 and it appears that WCT
derived some benefit by leveraging SandRidge's facilities.  It would also seem
reasonable to infer, given Mr. Ward's son's limited experience in the oil and
gas industry, that WCT leveraged SandRidge's and Mr. Ward's knowledge of the
Mississippian play, at the expense of SandRidge shareholders, to acquire
properties at a time when the play was just emerging, lease rates were
cheapest and the knowledge of SandRidge and Mr. Ward were most valuable.

We had expected that the Company and its CEO would quickly issue an
unequivocal denial of these allegations.  To date there has only been silence,
other than the assertion, which we believe lacks credibility, that Tom Ward
had no involvement in WCT.

We assume that the independent directors of the Company, particularly the
members of the Company's audit committee, were completely unaware of these
dealings, as tolerance of these kinds of conflicts would be utterly
incompatible with serving as an independent director of a public company.  We
call on the Board of Directors to retain a leading independent law firm and
forensic accounting firm to conduct a thorough and independent investigation
of these allegations.  If true, these allegations may constitute a breach of
Mr. Ward's non-compete obligations to the Company and "cause" for terminating
Mr. Ward.  Pending completion of the investigation, Mr. Ward should be
suspended from serving as Chairman and Chief Executive Officer of the Company.

We hope the Board understands the gravity of the situation.

Very truly yours,
MOUNT KELLETT CAPITAL MANAGEMENT LP
By:                 (sig)
                    Name:  Jonathan Fiorello
                    Title:  Chief Operating Officer

About Mount Kellett Capital Management LP

Mount Kellett is a multi-strategy private investment firm focused on global
value, special situations and opportunistic investing. The firm has
approximately 115 employees with offices in New York, Dallas, Hong Kong,
London, and Mumbai. The firm currently has in excess of $7 billion in assets
under management.

SOURCE Mount Kellett Capital Management LP

Contact: Scott Tagliarino or Catherine Jones, ASC Advisors, +1-203-992-1230
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