Company: MNTR
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010157
Chunk: 50

Company: Mentor Capital, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 50
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 benefits which
    may accrue in the name of Mentor Capital, Inc. was recorded on April 9, 2025, subsequent to quarter end, in Martin County, Texas by
    a certain Assignment of Overriding Royalty Interests effective April 1, 2025. Royalty payments owed to the Company commenced and will
    be recognized effective April 1, 2025. The Company estimates that this first royalty payment will be received by the Company on or
    around August 2025.

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    ○
    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, subsequent to quarter end, in Martin County, Texas by a
    certain Mineral and Royalty Deed effective April 1, 2025. Therefore, royalty payments owed to the Company commenced and will be
    recognized on April 1, 2025. The Company estimates that this first royalty payment will be received by the Company on or around
    August 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 we
participate in 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 was $2,000 and $0, at March 31, 2025 and 2024, respectively. Royalty income received was $0 and