SandRidge Permian Trust Announces Quarterly Distribution

distribution for the three-month period ended March 31, 2019 (which
primarily relates to production attributable to the Trust’s interests
from December 1, 2018 to February 28, 2019) of approximately $3.8
million, or $0.071 per unit. The Trust makes distributions on a
quarterly basis on or about the 60th day following the completion of
each quarter. The distribution is expected to occur on or before May 24,
2019 to holders of record as of the close of business on May 10, 2019.

During the three-month production period ended February 28, 2019,
combined sales volumes were lower than the previous period and the
average oil price received from the sale of minerals attributable to the
Trust’s interests decreased as compared to the three-month period ended
November 30, 2018. As no additional development wells will be drilled,
the Trust’s production is expected to decline each quarter during the
remainder of its life.

As previously announced, the Trustee intends to withhold the greater of
$190,000 or 3.5% of the funds otherwise available for distribution each
quarter to gradually increase existing cash reserves by a total of
approximately $2,275,000. The withholding for this distribution is
$190,000. This cash is reserved to pay or provide for the payment of
future known, anticipated or contingent expenses or liabilities.

The Trust owns royalty interests in oil and natural gas properties in
the Central Basin Platform of the Permian Basin in Andrews County, Texas
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, natural gas and NGL prices,
and the amount and timing of the Trust’s administrative expenses, among
other factors. All Trust unitholders share distributions on a pro rata

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

Sales Volumes
Oil (MBbl) 104
Natural Gas Liquids “NGL” (MBbl) 15
Natural Gas (MMcf) 46
Combined (MBoe) 126
Average Price
Oil (per Bbl) $ 43.59
NGL (per Bbl) $ 18.54
Natural Gas (per Mcf) $ 2.08
Natural Gas (per Mcf) including impact of post-production expenses $ 1.91
Revenues $ 4,883
Expenses   931
Distributable income $ 3,952
Additional cash reserve   190
Distributable income available to unitholders $ 3,762
Distributable income per unit (52,500,000 units issued and
$ 0.071

Pursuant to Internal Revenue Code 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 by
SandRidge Permian Trust to nominees and brokers as provided for under
Treasury Regulation Section 1.1446-4(b), and while specific relief is
not specified for Section 1441 income, this disclosure is intended to
suffice. Nominees and brokers should withhold at the highest marginal
rate on 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 unitholders, and the Trustee’s planned withholding of funds to
increase cash reserves for future known, anticipated or contingent
expenses or liabilities of the Trust. The anticipated distribution is
based, in part, on the amount of cash received or expected to be
received by the Trust from Avalon Energy, LLC. (“Avalon”) with respect
to the relevant period. Any differences in actual cash receipts by the
Trust could affect this distributable amount. The amount of such cash
received or expected to be received by the Trust (and its ability to pay
distributions) has been and will be significantly and negatively
impacted by prevailing low commodity prices, which could remain low for
an extended period of time or decline further. 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 Avalon 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 Permian
Trust is subject to the risks described in the Trust’s Annual Report on
Form 10-K for the year ended December 31, 2018, 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 website at


SandRidge Permian Trust
The Bank of New York Mellon Trust
Company, N.A., as Trustee

Sarah Newell

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