It’s a done deal! SandRidge Energy’s $5.25 million acquisition of the overriding royalty interest assets of what is left of the SandRidge Mississippian Trust II.
In a brief filing Thursday with the U.S. Securities Exchange Commission, the company announced the closing. It explained the net purchase price was $3.28 million given the company’s 37.6% ownership of the trust. The closing date was registered as Sept. 10, 2020.
The dissolution of the Trust was required under its agreement if “cash available for distribution for any four consecutive quarters, on a cumulative basis, is less than $5 million.” At the end of 2019, the cash available totaled $4.392 million and the Trust was required to dissolve and start winding up at the close of business on Feb. 14, 2020.
The acquisition occurred even as SandRidge Energy remains in bankruptcy court where it filed Chapter 11 reorganization.
In July, the trust announced there would be no distribution paid in August for the three-month period ended June 30. It explained that its costs, charges and expenses attributable to the properties equaled the revenue received from the sale of the oil, natural gas and other hydrocarbons produced from the properties.
The Trust blamed a significant decrease in production on a drop in prices and said no additional development wells would be drilled.
Source: SEC filing
