Law Firm of Wohl & Fruchter Investigating Potential Claims of Unitholders of SandRidge Mississippian Trusts I and II
March 27 2014 - 9:30AM
Business Wire
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;
and improperly changing the wells subject to Trust II’s royalty
interest.
Persons with relevant information, and SDT and SDR unitholders
with questions about this investigation, are invited to contact the
attorney below, or our Firm by calling 866.833.6245.
Additional information is available
at http://www.wohlfruchter.com/cases/sdtrusts.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation
arising from fraud and other fiduciary breaches by corporate
managers, as well as other complex litigation matters. In
particular, we have experience litigating claims on behalf of
unitholders of oil and gas royalty trusts. Please visit our
website, www.wohlfruchter.com, to learn more about our Firm, or
contact one of our partners.
This release may be deemed to constitute attorney
advertising.
Wohl & Fruchter LLPJ. Elazar Fruchter, 845-425-4658Toll
Free: 866-833-6245www.wohlfruchter.com