Company: OKMN
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001079973-25-000885
Chunk: 14

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 2
Chunk 14
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 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. The lease covers 160 acres and after initial reworking now includes
nine oil wells, two idle wells and four water injection wells. At present the wells are not pumping, as they require additional maintenance
work. As of March 31, 2025, aggregate additional expenditures beyond the purchase totaled approximately $108,550. During the nine months
ended March 31, 2025, the Company conducted minimal work on the Vitt lease, so expenditures totaled $550. For the nine months ended March
31, 2025, the Company received $355 in revenue from the project compared to revenues for the nine months ending March 31, 2024 of $1,972.

The Vitt Lease has now become a small nominal lease
able to produce oil, though not on a consistent basis as we continue to encounter various maintenance issues that have to be addressed.
The Company continues to explore a number of possibilities for the Vitt Lease, which may include involving a partner in its further development.

West Sheppard Pool

The Company previously had
a 50% joint venture interest in the West Sheppard Pool Field, a series of leases totaling 1,930 acres located in Okmulgee County, Oklahoma.
The 26 existing wells on the leases range from 850 feet to 1,950 feet in depth with gas production from several zones as their main objective.

As of November 2024, the Company assigned its 50%
interest in the West Sheppard Pool project to Sheppard Pool Operating, LLC, the operator of the project. After Sheppard Pool Operating
has received $22,850 in revenue from the project, the Company will receive a 10% overriding royalty interest (“ ORRI”) in the
project. Sheppard Pool may elect to reduce the 10% ORRI to 5% by a one-time payment of $100,000 to the Company within 4 years of the effective
date of the agreement.

During the nine months
ended March 31, 2025, gas sales continued to be suspended on the property and the Company recorded no expenditures or revenues from the
project.

Pushmataha

In December 2021,
the Company exercised its option and entered into a definitive joint venture and operating agreement with Blackrock to acquire 50% of
Blackrock’s interest in the Push