Company: OKMN
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001553350-25-000149
Chunk: 11

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-11-25
Form: 10-Q
Item: Item 1
Chunk 11
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 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 on the wells
in 2023, including rebuilding the downhole pumps, though the wells are not currently operating, as some additional maintenance work is
required.

One
of the injection wells onsite remains idle.  The Vitt lease is equipped with pump jacks, oil and water tanks and other equipment. Since
we acquired the lease a nominal amount of oil has been sold from it, contributing a nominal $354 to revenues in the last fiscal year ended
June 30, 2025, and $0Nil in the three months ended September 30, 2025.

West Sheppard Pool
Field in North East Oklahoma

In August 2021, the Company entered into an option
agreement with Blackrock to