Company: BSM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001621434-25-000133
Chunk: 57

Company: Black Stone Minerals, L.P.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 for additional information.

Shelby Trough Development Agreements 

We are party to a series of JEAs with unaffiliated operators covering portions of our undeveloped leasehold and mineral acreage in the Shelby Trough area of East Texas. These agreements grant the operator exclusive rights to develop designated acreage in exchange for meeting minimum annual drilling commitments. Each JEA also includes a banked well provision, which allows operators that exceed their annual drilling commitments to carry forward excess wells to satisfy future obligations, subject to defined caps. Wells drilled are typically required to turn to sales within 260 days of rig release. The agreements are structured to generate value from our undeveloped acreage while limiting our exposure to capital and operational costs.

Aethon Joint Exploration Agreements

We have two joint exploration agreements ("JEAs"; each, a "JEA") with Aethon covering portions of our acreage in San Augustine and Angelina counties, Texas. In May 2025, the parties entered into a letter agreement amending the JEAs. As amended, the agreements provide for a combined annual minimum drilling commitment of 16 wells across both contract areas. 

Aethon expects to drill a total of 15 wells in the current program year that began in July 2025 and apply one of its banked wells toward its commitment. As of September 30, 2025, Aethon had spud three wells in the current program year and had an inventory of 12 wells drilled in the previous program year that are expected to be turned to sales during the fourth quarter of 2025 and early 2026.

One of the wells drilled in the previous program year was replaced with a banked well. As of September 30, 2025, Aethon had a total of 10 banked wells.

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Revenant Joint Exploration Agreement

In May 2025, we entered into a JEA with Revenant covering an expanded portion of our Shelby Trough acreage, primarily located in Angelina, Nacogdoches, and San Augustine counties in Texas. The agreement grants Revenant exclusive development rights across three designated areas of interest ("AOIs") and requires annual well commitments, including test wells in certain areas, to maintain development rights across the full contract area. The agreement allows for non-operated working interest participation, and in June 2025 we entered into a farmout agreement with an external capital provider covering all of our undivided 35% working interest.

The well