SandRidge Permian Trust Announces Distribution of $0.55 Per Unit

Sandridge Permian Trust announced a quarterly distribution for the three month period ended December 31, 2011 (which primarily relates to production attributable to the Trust’s interests from September 1, 2011 through November 30, 2011) of $29.1 million, or $0.553523 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 February 29, 2012 to holders of record as of the close of business on February 14, 2012.

The Trust was formed by SandRidge Energy, Inc. (“SandRidge”) in May 2011 to own royalty interests in oil and natural gas properties leased by SandRidge 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 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, up to the amount of the Incentive Threshold for the quarter. Common units are entitled to receive 50% of any cash available for distribution in excess of the Incentive Threshold for the quarter.

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

(1) Includes natural gas liquids.

In addition to the initial producing wells, SandRidge, pursuant to a development agreement with the Trust, is obligated to drill, or cause to be drilled, the equivalent of 888 development wells, determined by reference to SandRidge’s net revenue interest in a well, in an area of mutual interest on or before March 31, 2015. In the event of delays, SandRidge will have until March 31, 2016 to fulfill its drilling obligation.

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

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