Company: OKMN
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001079973-25-000885
Chunk: 15

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 2
Chunk 15
---
mataha Gas Field, comprising 6 leases covering an area of 3,840 acres located in Pushmataha County,
Oklahoma. Blackrock had previously entered into a separate option to acquire working interests ranging from 92 -100% in the existing wells
and lease acreage from a third party. In connection with the initial acquisition, the Company expended approximately $253,000 in
cash. Under the terms of the Joint Venture agreement, after deducting operating costs including a flat sum of $1,000 per month to Blackrock
as operator, the Company shall receive all net income from revenues of the project until it has recouped $125,000, thereafter, the parties
shall equally split the income.

The Company
entered into an agreement to become a 50% Joint Venture partner with Blackrock. The leases owned by the Joint Venture are subject to landowner
royalties and other commitments resulting in net revenue interests to the joint venture of between 71% - 76%, with the exception of the
Stephenson well, which has a net revenue interest of approximately 68%.

Pushmataha has seven existing
gas wells ranging in depth from 10,000 - 12,300 feet. The wells were inactive since 2019 due to line leaks and lower gas prices, though
in April 2021 some wells were put back online and have at various intervals produced between 100 - 300 thousand cubic feet per
day (MCFD).

The existing seven wells
show additional behind-pipe zones and the joint venture partners assessed recompleting a new zone in one of the wells called the KDC.
The operator had a rig out on site at KDC in late January 2023 and commenced some work on the well and were planning to conduct a recompletion,
though weather conditions made it too dangerous to proceed. Plans were also underway for the operator to commence repairing
or possibly replacing the plunger lift systems of some of the wells, with the goal of dewatering the wells to enable the gas to flow freely.
The joint venture partners have temporarily deferred pursuing this active rework activity following the downturn in natural gas pricing
or until additional capital is available.

A hydrocarbon survey was
conducted in July 2022 across these leases utilizing a third party patented remote sensing technology. The survey has provided the operator
with valuable data in charting the potential for the future development of this project. There is also space to drill new gas wells on
the