Company: EQS
Filing Date: 2025-04-10
Form Type: 10-K
Source: 0001712543-25-000016
Chunk: 49

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-10
Form: 10-K
Item: Item 8
Chunk 49
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 $                150            150    
                         $                $                150            150    

During 2022,
we recorded an increase of $2.5 million in net unrealized appreciation, from an unrealized appreciation of $5.0 million as of December
31, 2021 to a net unrealized appreciation of $7.5 million as of December 31, 2022. Such change in unrealized appreciation resulted primarily
from the increase in the fair value of our holdings in Equus Energy, LLC of $2.65 million, principally due to increases in the cost basis
of this investment, as well as increases in oil and gas prices, as well as increases in the short- and long-term forward pricing curves
for these commodities during 2022.

  (8)      EQUUS ENERGY, LLC  

Equus Energy,
LLC (“ Equus Energy”) was formed in November 2011 as a wholly-owned subsidiary of the Fund to make investments in companies
in the energy sector, with particular emphasis on income-producing oil & gas properties. In December 2011, we contributed $250,000
to the capital of Equus Energy. On December 27, 2012, we invested an additional $6.8 million in Equus Energy for the purpose of additional
working capital and to fund the purchase of $6.6 million in working interests that, as of December 31, 2024, consisted of 136 producing
and non- producing oil and gas wells. On September 30, 2020, the Fund provided an additional $0.6 million in capital to Equus Energy for
the purpose of additional working capital. On June 30, 2021, the Fund provided an additional $0.35 million in capital to Equus Energy
for the purpose of additional working capital. On December 31, 2022, the Fund provided an additional $0.15 million in capital to Equus
Energy for the purpose of additional working capital. The working interests include associated development rights of approximately 21,320
acres situated on 9 separate properties in Texas and Oklahoma. The working interests range from a de minimusamount to 50% of the
leasehold that includes these wells.

The wells
are operated by a number of operators, including Burk Royalty, which has operating responsibility for all of Equus Energy’s 22 producing
well interests located in the Conger Field, a productive oil and gas field on