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Sandridge Mississippian Trust II Message Board

  • birdfish1965 birdfish1965 Mar 27, 2014 12:17 PM Flag

    Possible Lawsuit

    I just saw this:

    Law Firm of Wohl & Fruchter Investigating Potential Claims of Unitholders of SandRidge Mississippian Trusts I
    9:30a March 27, 2014 (Business Wire) Print

    The law firm of Wohl & Fruchter LLP has commenced an investigation into potential claims of unitholders of SandRidge Mississippian Trust I (Trust I) (NSYE:SDT) and SandRidge Mississippian Trust II (Trust II) (NSYE:SDR) against SandRidge Energy, Inc. (SandRidge) (NYSE:SD) and the trustees of Trust I and Trust II (Trusts).

    The Trusts are Delaware statutory trusts to which SandRidge conveyed royalty interests in certain oil and natural gas wells (Trust Wells) operated by SandRidge in the Mississippian formation in Oklahoma and Kansas. The royalty interests entitle the Trusts to receive varying percentages of the proceeds from the sale of oil, natural gas, and natural gas liquids produced by the Trust Wells.

    Under the terms of the conveyances pursuant to which the royalty interests were granted to the Trusts, SandRidge is obligated to act as a reasonably prudent operator, and thus operate the Trust Wells in the same manner as it would operate its own fully-owned wells under the same or similar circumstances.

    On March 14, 2014, the Trusts filed their 2013 annual reports on Form 10-K, which contained updated reports of proved reserves for the Trust Wells. The reports showed continued deterioration in proved reserves due in part to poor well performance.

    The 2013 Form 10-K of Trust II also disclosed that certain wells drilled by SandRidge on behalf of Trust II during 2013 were on locations different than those included in the reserve report prepared as of December 31, 2012. This "swap" resulted in a further downward revision in proved reserves.

    Wohl & Fruchter's investigation concerns whether SandRidge has breached duties owed to the Trusts, as well as acted in bad faith by, among other things, failing to act as a reasonably prudent operator with respect to its operation of the Trust Wells

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    • Regarding this part: The 2013 Form 10-K of Trust II also disclosed that certain wells drilled by SandRidge on behalf of Trust II during 2013 were on locations different than those included in the reserve report prepared as of December 31, 2012. This "swap" resulted in a further downward revision in proved reserves.

      Can anyone find that in the 10-K. I searched for quit a while and cannot find it. It is a very large file but I searched for 'swap', 'drill', 'acre' and several other keywords and no luck. I would think that if a law firm publishes it, then they would be at great risk if they were lying. Though I would like to read the part of the 10K to see what it really says instead of their interpretation.

      • 1 Reply to happyg456
      • " SandRidge is not required to drill Trust Development Wells on locations with respect to which proved undeveloped reserves have previously been identified for the Trust. In this regard, Trust Development Wells were drilled during 2013 on locations different than those included in the reserve report prepared as of December 31, 2012. As a result, and because no more than 206 Trust Development Wells are to be drilled for the Trust, certain locations with proved undeveloped reserves were removed from the drilling plan developed for the Trust, resulting in downward revisions of 3.9 MMBoe during the period."

    • http://www.wohlfruchter.com/cases/sdtrusts
      Just what I hoped for!

 
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