Company: MNTR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011889
Chunk: 54

Company: Mentor Capital, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 54
---

    of title to overriding royalty interests together with all interests in any units, bonuses, rents, royalties, and other benefits
    which may accrue in the name of Mentor Capital, Inc. was recorded on April 9, 2025 in Martin County, Texas by a certain Assignment
    of Overriding Royalty Interests effective April 1, 2025. Royalty payments owed to the Company commenced and were recognized effective
    April 1, 2025. The Company estimates that this first royalty payment will be received by the Company in or around September 2025.

    ○
    As
    of March 31, 2025, Mentor Capital, Inc. purchased royalty interests of approximately 0.050099% in forty-one (41) producing oil and
    gas wells in the Permian Basin situated in Martin County, Texas from Maven Royalty 2, LP, a Delaware limited partnership, for $588,229.
    Prior to the Company’s purchase, average daily production in the last six months was approximately 15,734 BBLs and 20,645 MCF.
    Transfer of title to all oil, gas, and associated liquid or liquefiable hydrocarbons, including royalty, overriding royalty, unit
    interest and mineral interests of whatever nature, in, on, and under that may be produced from or attributable to the property including
    royalty interests in the name of Mentor Capital, Inc. was recorded on April 9, 2025 in Martin County, Texas by a certain Mineral
    and Royalty Deed effective April 1, 2025. Therefore, royalty payments owed to the Company commenced and were recognized on April
    1, 2025. The Company estimates that this first royalty payment will be received by the Company in or around September 2025.

The
royalty interests entitle the Company to receive a proportional share of revenues generated from the production of hydrocarbons from
the underlying property, without incurring any operating or production costs. Working interest owners operating the wells will
participate in and bear the costs of operation and development. Accrued royalty income is estimated and recognized in the month it
is produced. The difference between accrued royalty income and the amount received is adjusted when royalty payments are paid.
Accrual of estimated royalty income were $75,000 and $0 for the three months ended June 30, 2025 and 2024, and $77,000 and