Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 302

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 302
---

affected by persistent infrastructure issues, nearly stagnant oil prices, and increasing operating costs. In August 2025, the Company
entered into an agreement with Blackrock to exchange its 50% working interest in the Blackrock Joint Venture for $25,000 cash and an additional
45% joint venture interest in the Pushmataha Gas Field. As a result of this transaction, the Company has disposed of its entire interest
in the Blackrock Joint Venture.

Kansas

In July 2021, the Company
through its wholly owned Kansas subsidiary, Okmin Operations, LLC, entered into an agreement to acquire a 72.5% Net Revenue Interest in
the Vitt Lease located in Neosho County, Kansas. Okmin Operations, LLC acquired the lease with a cash payment of $25,000 together with
a commitment to make additional capital and operating expenditures to rework the wells on the lease. In the fiscal year ended June 30,
2025 lease operating expenses recorded for the Vitt were nominal totaling under $1,000. To date, the Company’s aggregate additional
capital and lease operating expenditures on the lease are approximately $109,000. The lease covers 160 acres and includes eleven existing
oil and gas wells and four water injection wells.

The Company has entered into
an operating agreement covering the Vitt Lease with Petron Oil and Gas LLC (“Petron”), pursuant to which Petron will handle
the reworking of the existing wells and other day to day operations at the lease. Under the operating agreement, the company has fulfilled
its commitment for expenditures to rework the existing wells and to cover operator costs and expenses of at least $50,000. Under
the agreement, J & S McCoy Enterprises and Earnest Ashlock, who is the principal of Petron, together will retain a 15% Net Revenue
Interest in the Vitt Lease. Upon the lease becoming fully operational, it is anticipated that the parties will contribute capital
costs in accordance with their percentage working interest, of which Okmin’s working interest is 85.8571428571%. The remaining 12.5%
Net Revenue Interest of the lease reverts back to the landowners.

This
lease currently has fifteen wells on site. Nine oil and gas wells, two idle wells that require further evaluation, and four injection
wells. These are shallow wells drilled down to the Bartlesville zone at a depth of 525 feet. The operator conducted some work