Oil and gas E&P specialist SandRidge Energy (NYSE:SD) announced today a $3.50-per-share semi-annual dividend on its shares of 7% convertible perpetual preferred stock. It has 3 million shares of the preferred stock outstanding.

The board of directors said the dividend is payable on November 15 to holders of record at the close of business on November 1.

The 7% convertible perpetual preferred stock was issued in November 2010 with a liquidation preference of $100.00. They were convertible at the holder's option on Feb. 15, 2011, initially into approximately 12.8791 shares of SandRidge's common stock, but beginning on May 15, 2011, the annual dividend on each share of the 7% convertible preferred stock became $7.00 payable semi-annually, in cash, stock, or a combination of the two as the oil and gas company saw fit.

While the 7% convertible perpetual preferred stock is not redeemable by SandRidge at any time, after Nov. 20, 2015, it may cause all outstanding shares of the preferred stock to convert automatically into common stock at the then-prevailing conversion rate if certain conditions are met.

SandRidge does not pay a dividend on its regular stock.

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