The SandRidge Mississipian Trust I with assets in northern Oklahoma should be dissolved totally by the third quarter of this year according to an announcement made this week.
The Trust owns royalty interests in oil and natural gas properties in the Mississippian formation in Alfalfa, Garfield, Grant and Woods counties in Oklahoma and is entitled to receive proceeds from the sale of production attributable to the royalty interests.
The Trust is being dissolved because its original agreement called to wind up business if the cash available for distribution for any four consecutive quarters fell below $1 million. As of Sept. 30, 2020, the trust had about $815,000 available cash, requiring the Trust to dissolve and start the process in November of 2020.
Under the dissolution requirement, the Trustee will sell all of the Trust’s assets either by private sale or public auction. The sale, stated the announcement is expected to be finalized by the third quarter of this year.
Until then, the Trust plans to continue to receive some income and also make quarterly distributions to unitholders, if there is available cash after payment of expenses.
The payment for the quarterly distribution for the three-month period ended December 31, 2020 was approximately $0.1 million, or $0.0029 per unit.