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Press release from Business Wire

Morgan Stanley Global Private Equity Portfolio Company Trinity CO2 Investments Acquires SandRidge Tertiary for $130 Million

Monday, June 04, 2012

Morgan Stanley Global Private Equity Portfolio Company Trinity CO2 Investments Acquires SandRidge Tertiary for $130 Million07:30 EDT Monday, June 04, 2012 NEW YORK (Business Wire) -- Morgan Stanley Global Private Equity announced today that portfolio company Trinity CO2 Investments LLC (Trinity CO2), a Midland, Texas-based carbon dioxide (CO2) pipeline and supply company, has acquired SandRidge Tertiary, LLC (SandRidge Tertiary) from SandRidge Energy Inc. (SandRidge Energy | NYSE: SD) for $130 million in cash. Headquartered in Midland, Texas, SandRidge Tertiary is an enhanced oil recovery (EOR) company with projects in the Permian Basin of West Texas that have proved reserves of 24 million barrels of oil equivalent, as of December 31, 2011. The acquisition will combine Trinity CO2's strategically located CO2 pipeline and supply assets with SandRidge Tertiary's EOR operations to create a leading CO2-based EOR company. Trinity CO2 has also acquired the Wellman Pipeline from SandRidge Energy as part of this transaction. SandRidge Tertiary's highly experienced management team, including Greg West and John Milam, has decades of tertiary oil recovery experience and has joined the senior management team of Trinity CO2. Greg West has been appointed Executive Vice President and Chief Operating Officer for Trinity CO2, and John Milam has been appointed Senior Vice President, Operations. Greg West has also joined Trinity CO2's board of directors. John Moon, a Partner and Managing Director of Morgan Stanley Global Private Equity, said, “The acquisition of SandRidge Tertiary represents a unique opportunity to combine an attractive upstream EOR business with Trinity CO2's strategically located CO2 pipeline and supply platform. We believe that there will be additional opportunities for this platform to grow, and we are delighted to have the management team at SandRidge Tertiary on board and working closely with our partners at Trinity CO2.” Barry Petty, Chief Executive Officer of Trinity CO2 Investments, said, “We have a clear long-term strategy to expand our existing asset base and develop a comprehensive and integrated CO2 business. With the addition of SandRidge Tertiary, we are excited to leverage the positive momentum and strength of our current partnership with Morgan Stanley Global Private Equity to take Trinity CO2 to the next level.” About Trinity CO2 InvestmentsHeadquartered in Midland, Texas, Trinity CO2 Investments is a privately owned CO2 pipeline and supply company serving upstream oil producers in the Permian Basin of West Texas and New Mexico, the hub of CO2-based enhanced oil recovery activity in the United States. Trinity CO2 Investments LLC has offices in Midland, Texas and Seminole, Texas. Trinity CO2 has been a portfolio company of Morgan Stanley Global Private Equity since August 2010. For further information about Trinity CO2 Investments, please visit www.trinityco2.com About Morgan Stanley Global Private EquityMorgan Stanley Global Private Equity, part of Morgan Stanley Investment Management, makes private equity and equity-related investments on a global basis. Morgan Stanley Global Private Equity utilizes Morgan Stanley's vast resources, including the Firm's global franchise and relationships with leading corporate management teams and financial sponsors, to source attractive opportunities for its investment funds. Morgan Stanley's roots in private equity investing date back to 1985 with the Morgan Stanley Capital Partners private equity funds. To date, Morgan Stanley Global Private Equity and its affiliated funds have invested over $8 billion of equity across a broad spectrum of industries. For further information about Morgan Stanley Global Private Equity, please visit www.morganstanley.com/privateequity. AboutMorgan StanleyMorgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 43 countries. For further information about Morgan Stanley, please visit www.morganstanley.com. Trinity CO2Barry Petty, 432-683-8265President and Chief Executive Officerbpetty@trinityCO2.comorMorgan StanleyMatt Burkhard, 212-761-2444matt.burkhard@morganstanley.com