TPG-Axon is lobbying other SandRidge shareholders to amend the company's bylaws to make it easier to replace the current board. It also has proposed its own slate of directors to lead the company.
Mount Kellett intends to support TPG-Axon's proxy efforts, according to a source familiar with the situation.
Mount Kellett's Fiorello said he is concerned about SandRidge's silence on the allegations surrounding Ward and WCT Resources LLC.
“We had expected that the company and its CEO would quickly issue an unequivocal denial of these allegations,” Fiorello wrote. “To date there has only been silence, other than the assertion, which we believe lacks credibility, that Tom Ward had no involvement in WCT.”
WCT listed its principal office at SandRidge until 2011. Its current address is 428 Dean A. McGee.
WCT, which was formed in 2002, is owned by trusts established for the benefit of Ward's children, according to SandRidge's proxy statement last year.
It sold working interests on acreage in northeast Oklahoma to SandRidge in 2011 for $391,000. WCT also received $168,000 in revenue as a working interest owner in SandRidge wells in northwest Oklahoma, SandRidge reported.