The Truth About SandRidge

 | Dec 22, 2011 | 4:31 PM EST
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What is with the deal with sellers of oils? SandRidge (SD) was up huge today because Repsol is investing in the company and helping to fund its huge drilling budget.

I can't begin to tell you how much pressure I felt because I said that SandRidge would have no problem funding its drilling program with all the foreign money around. CEO Tom Ward has come on "Mad Money" twice to say it would not be a problem. With oil up at $100, it sure seemed credible.

But this stock has been horrid because people figured the funding gap would be too great -- the same thing that bedeviled EOG Resources (EOG) for so long before it became clear that it could sell off its Bakken holdings and fund about a lifetime of dry-hole drilling, and it's hitting 100% of its drill holes in the Eagleford.

I keep coming back to the fact that the oils are the place to be if the situation in Europe devolves into crisis instead of full-blown terror.

This Repsol deal -- a SPANISH company giving $1 billion to SandRidge -- is all you need to think about going forward when you worry about funding gaps with U.S. oil companies.

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