Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 85

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 15
Chunk 85
---
on to amend the JEAs in San Augustine and Angelina counties. In those agreements, the parties agreed to revise the current program year drill schedules under each JEA, to extend the respective program years by nine months, and to withdraw the invocation of the time-out provisions. Aethon also released its rights under 25,000 acres from the parties' area of mutual interest defined in the original JEAs.Farmout AgreementsThe Partnership has entered into farmout arrangements designed to reduce its working interest capital expenditures and thereby significantly lowering its capital spending other than for mineral and royalty interest acquisitions. Under these agreements, the Partnership conveyed its rights to participate in certain non-operated working interest opportunities to external capital providers while retaining value from these interests in the form of additional royalty income or retained economic interests. The Partnership's farmout arrangements cover its share of working interests under active development by Aethon in San Augustine County and Angelina County in East Texas.

F-16

BLACK STONE MINERALS, L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

San Augustine County Farmout In May 2021, the Partnership entered into a farmout agreement (the "Canaan Farmout") with Canaan and in December 2021, the Partnership entered into a farmout agreement (the "Azul Farmout") with Azul-SA, LLC ("Azul"). In April 2022, the Partnership amended the Canaan Farmout and entered into a farmout agreement (the "JWM Farmout") with JWM Oil & Gas LLC ("JWM"). These agreements continue for a 10 year period, unless earlier terminated in accordance with the terms of the agreements. The JWM Farmout terminated in September 2024 and the Canaan Farmout terminated in December 2024. The Partnership does not intend to step into the working interests associated with the terminated agreements. Unless the Partnership agrees otherwise with Aethon, the Partnership believes that Aethon, as operator and the party who has proposed the existing wells, has absorbed and will continue to absorb any non-consented interests. The following tables present the working interests each farmout partner will earn within the contract area under the SanAugustine farmout agreements:Brent Miller AreaFarmout Partner% of Partnership's Working InterestMaximum % on an 8/8th basisFormer Canaan Interest64.0 %32.0 %Azul20.0 %10.0 %Former JWM Interest16