Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 30

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 9B
Chunk 30
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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 Interest16.0 %8.0 %Total100.0 %50.0 %Other AreasFarmout Partner% of Partnership's Working InterestMaximum % on an 8/8th basisFormer Canaan Interest40.0 %10.0 %Azul50.0 %12.5 %Former JWM Interest10.0 %2.5 %Total100.0 %25.0 %Angelina County FarmoutIn November 2020, the Partnership entered into a farmout agreement (the "Pivotal Farmout") with Pivotal. The Pivotal Farmout continues until April 2028, unless earlier terminated in accordance to the terms of the agreement. Pivotal earns 100% of the Partnership's working interest (ranging from approximately 12.5% to 25% on an 8/8ths basis) in wells drilled and operated by A