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SandRidge Mississippian Trust II Announces Distribution of $0.598636 Per Unit



  SandRidge Mississippian Trust II Announces Distribution of $0.598636 Per
  Unit

Business Wire

AUSTIN, Texas -- November 01, 2012

SANDRIDGE MISSISSIPPIAN TRUST II (NYSE: SDR) today announced a quarterly
distribution for the three-month period ended September 30, 2012 (which
primarily relates to production attributable to the Trust’s interests from
June 1, 2012 through August 31, 2012) of $29.8 million, or $0.598636 per unit.
The Trust makes distributions on a quarterly basis approximately 60 days after
the end of each quarter. The distribution is expected to occur on or before
November 29, 2012 to holders of record as of the close of business on November
14, 2012.

During the three-month production period ended August 31, 2012, total sales
volumes increased 14% over the previous three-month period. The increased
volume was primarily due to higher oil and natural gas liquids production,
which increased approximately 17% compared to the previous period while
natural gas production increased 11% period over period. The additional oil
production was partly offset by lower realized prices. The realized oil price,
including the impact of hedges and natural gas liquids, was approximately 1%
lower compared to the previous period. Although the realized gas price
increased 28% over the previous period, natural gas revenues made up only 16%
of total revenues during the period. Overall, the higher production volumes
more than offset the lower realized oil price, resulting in a 6% higher
distribution per unit than the target.

The Trust owns royalty interests created from interests held by SandRidge
Energy, Inc. (“SandRidge”) and its subsidiaries in oil and natural gas
properties in the Mississippian formation in Alfalfa, Grant, Kay, Noble, and
Woods counties in northern Oklahoma and Barber, Comanche, Harper and Sumner
counties in southern Kansas and is entitled to receive proceeds from the sale
of production attributable to the royalty interests. As described in the
Trust’s filings with the Securities and Exchange Commission (the “SEC”), the
amount of the quarterly distributions is expected to fluctuate from quarter to
quarter, depending on the proceeds received by the Trust as a result of actual
production volumes, oil and natural gas prices and the amount and timing of
the Trust’s administrative expenses, among other factors. Although there is no
assurance of any minimum distribution in any quarterly period, during the
subordination period (as described in the Trust’s filings), holders of Common
Units will be entitled to receive an amount up to the “Subordination
Threshold” (which varies from quarter to quarter) prior to any distribution
being made for that quarter in respect of the Subordinated Units, all of which
are held by SandRidge. If the amount available for distribution in any
quarterly period is sufficient to distribute an amount equal to the
Subordination Threshold to the holders of all units (including the
Subordinated Units), any additional balance is distributed to holders of all
units pro rata, up to the amount of the Incentive Threshold for the quarter.
Trust units are entitled to receive 50% of any cash available for distribution
in excess of the Incentive Threshold for the quarter. The announced
distribution exceeded the Subordination Threshold, but not the Incentive
Threshold, for the quarter.

Volumes, price and distributable income available to unitholders for the
period were (dollars in thousands, except per unit):

                                                                   
Sales Volumes
Oil (MBbl) (1)                                                        271
Gas (MMcf)                                                            1,716
Combined (MBoe)                                                       557
Average Price
Oil (per Bbl) (1)                                                   $ 82.29
Gas (per Mcf)                                                       $ 2.94
Average Price - including impact of derivative settlements and
post-production expenses
Oil (per Bbl) (1)                                                   $ 98.39
Gas (per Mcf)                                                       $ 2.30
Revenues
Royalty income                                                      $ 27,322
Derivative settlements                                                4,360
Expenses                                                              1,915
Distributable income available to unitholders                       $ 29,767
Distributable income per unit (49,725,000 units issued and          $ 0.598636
outstanding)
                                                                       

(1)   Includes natural gas liquids.
       

In addition to wells that were producing at the effective date of the
assignment of the royalty interests to the Trust, SandRidge, pursuant to a
development agreement with the Trust, is obligated to drill, or cause to be
drilled, the equivalent of 206 development wells, determined by reference to
SandRidge’s net revenue interest in a well and the perforated length of the
well, in an area of mutual interest by December 31, 2016.

To date, equivalent development wells producing, or drilled and perforated for
completion, during production periods upon which distributions are based are
as follows:

              Equivalent              Additional Drilled     Total Development
As of         Producing               Development Wells*     Wells
              Development Wells
2/29/2012     4.8                     3.4                    8.2
5/31/2012     37.5                    2.7                    40.2
8/31/2012     67.1                    0.3                    67.4
                                                              

*Equivalent development wells that are not producing at the ‘As of’ date but
have been drilled and perforated for completion.

SandRidge Energy, Inc., the sponsor of SandRidge Mississippian Trust II,
announced that it will host a conference call on November 16, 2012 at 8:00 am
CST. The telephone number to access the conference call from within the U.S.
is 866-314-4483 and from outside the U.S. is 617-213-8049. The participant
code for the call is 79553135. The call may also be accessed via the internet
at http://www.media-server.com/m/acs/02de84b55352fe478e45c9012f7e3083. An
audio replay of the call will be available from November 16, 2012 until 11:59
pm CST on November 23, 2012. The number to access the conference call replay
from within the U.S. is 888-286-8010 and from outside the U.S. is
617-801-6888. The participant code for the replay is 97481272.

Pursuant to IRC Section 1446, withholding tax on income effectively connected
to a United States trade or business allocated to foreign partners should be
made at the highest marginal rate. Under Section 1441, withholding tax on
fixed, determinable, annual, periodic income from United States sources
allocated to foreign partners should be made at 30% of gross income unless the
rate is reduced by treaty. This is intended to be a qualified notice to
nominees and brokers as provided for under Treasury Regulation Section
1.1446-4(b) by SandRidge Mississippian Trust II, and while specific relief is
not specified for Section 1441 income, this disclosure is intended to suffice.
Nominees and brokers should withhold 35% of the distribution made to foreign
partners.

This press release contains statements that are “forward-looking statements”
within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. All statements contained in this press release, other than statements
of historical facts, are “forward-looking statements” for purposes of these
provisions. These forward-looking statements include the amount and date of
any anticipated distribution to unit holders. The anticipated distribution is
based, in part, on the amount of cash received or expected to be received by
the Trust from SandRidge with respect to the relevant period. Any differences
in actual cash receipts by the Trust could affect this distributable amount.
Other important factors that could cause actual results to differ materially
include expenses of the Trust and reserves for anticipated future expenses.
Statements made in this press release are qualified by the cautionary
statements made in this press release. Neither SandRidge nor the Trustee
intends, and neither assumes any obligation, to update any of the statements
included in this press release. An investment in Common Units issued by
SandRidge Mississippian Trust II is subject to the risks described in the
Trust’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, and
all of its other filings with the SEC. The Trust’s quarterly and other filed
reports are or will be available over the Internet at the SEC’s web site at
http://www.sec.gov.

Contact:

SandRidge Mississippian Trust II
The Bank of New York Mellon Trust Company, N.A., as Trustee
Sarah Newell, 1-512-236-6531
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