Davis Polk & Wardwell LLP is advising SandRidge Energy, Inc. on its $230 million agreement to acquire Crusader Energy Group Inc. Under the terms of the agreement, SandRidge will purchase all shares of Crusader common stock that will be issued upon the effectiveness of their reorganization under Chapter 11 of the United States Bankruptcy Code. Under Crusader’s plan of reorganization, all of the currently outstanding equity interests in Crusader would be cancelled and Crusader and its subsidiaries would become indirect, wholly owned subsidiaries of SandRidge. The transaction, which is expected to close in the fourth quarter of 2009, is subject to customary conditions, as well as approval of Crusader’s creditors and the Bankruptcy Court, and consideration of alternative transactions that may be submitted prior to a deadline to be approved by the Bankruptcy Court.

Headquartered in Oklahoma City, Oklahoma, SandRidge Energy is a rapidly growing independent natural gas and oil company concentrating in exploration, development and production activities. Oklahoma City, Oklahoma-based Crusader Energy Group is an oil and gas company with assets focused in various producing domestic basins.

The Davis Polk corporate team includes partners Nancy L. Sanborn and Michael Davis and associates Paul Denley Hodgdon and Saswat Bohidar (not yet admitted), all of the New York office, and associates Nicholas M. Janof, Robert J. Maynes and Zachary Patton, all of the Menlo Park office. The tax team includes partner Kathleen L. Ferrell and associates Kevin J. Brogan and Ari Weinstein. Partner Barbara Nims and associate Kerry Kopke are providing employee benefits advice. Partner Gail A. Flesher and associate Hayden Baker are providing environmental advice. Partner E. Waide Warner Jr. and associates Margie Chan and Florian Feder are providing credit advice. Associate Emma Maconick (admitted only in the High Court of New Zealand and the Supreme Court of England and Wales) of the Menlo Park office is providing intellectual property advice. Robin Kimberly Kakade is the legal assistant on the transaction. Except as noted above, all members of the Davis Polk team are based on the New York office.