Birmingham-based Energen Corp. (EGN) announced the purchase of more than 40,000 acres in West Texas from SandRidge Energy (SD) in Loving, Reeves, Ward, and Winkler counties. Energen says it has identified 62 potential drilling sites in the 3rd Bone Spring play. At a vertical depth of 10,500 to 11,500 feet, the typical Bone Spring well has estimated ultimate recovery of 400,000 to 500,000 barrels of oil equivalent. The company will pay $110 million plus standard closing adjustments. Energen is budgeting $7.5 million per well for drilling and completion costs.