Company: BSM
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001621434-25-000108
Chunk: 120

Company: Black Stone Minerals, L.P.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 120
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ed well provision, which allows operators that exceed their annual drilling commitments to carry forward excess wells to satisfy future obligations, subject to defined caps. Wells drilled are typically required to turn to sales within 260 days of rig release. The agreements are structured to generate value from our undeveloped acreage while limiting our exposure to capital and operational costs.

Aethon Joint Exploration Agreements

We have two JEAs with Aethon covering portions of our acreage in San Augustine and Angelina counties, Texas. In May 2025, the parties entered into a letter agreement amending the JEAs. As amended, the agreements provide for a combined annual minimum drilling commitment of 16 wells across both contract areas. 

 Aethon drilled a combined 22 wells under the two JEAs during the program years that ended in the second quarter of 2025. One well has been scheduled for plugging and will be replaced. As of June 30, 2025, 15 of those wells had not yet turned to sales and are expected to begin production during the remainder of 2025 and early 2026. Aethon expects to drill 15 wells in the next program year that begins in July 2025 and apply one of its 11 banked wells toward its commitment.

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Revenant Joint Exploration Agreement

In May 2025, we entered into a JEA with Revenant covering an expanded portion of our Shelby Trough acreage, primarily located in Angelina, Nacogdoches, and San Augustine counties in Texas. The agreement grants Revenant exclusive development rights across three designated areas of interest ("AOIs") and requires annual well commitments, including test wells in certain areas, to maintain development rights across the full contract area. The agreement allows for non-operated working interest participation, and in June 2025 we entered into a farmout agreement with an external capital provider covering all of our undivided 35% working interest.

The well commitments under the agreement escalate over a five-year period, with the following table summarizing the well commitments across the three AOIs:

Program YearCalendar YearAOI 1AOI 2AOI 3Total Wells120266——6220278——832028101—11420291222165 and thereafter2030 and beyond155525

Credit Facility

We maintain a senior secured revolving credit agreement, as amended, (the "Credit Facility"). The Credit Facility has an aggregate maximum credit amount of $1.0 billion and terminates on October