Company: OKMN
Filing Date: 2025-02-20
Form Type: 10-Q
Source: 0001079973-25-000298
Chunk: 12

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-02-20
Form: 10-Q
Item: Item 1
Chunk 12
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 Company will receive a 10% overriding royalty interest (“ORRI”) in the
project. Sheppard Pool may elect to reduce the 10% ORRI to 5% by a one-time payment of $100,000 to the Company within 4 years of the effective
date of the agreement.

During the six months
ended December 31, 2024, gas sales continued to be suspended on the property and the Company recorded no expenditures or revenues from
the project.

Pushmataha in South East Oklahoma

In December 2021,
the Company exercised its option and entered into definitive agreements with Blackrock to become a 50% joint venture partner in the Pushmataha
Gas Field, comprising 6 leases covering an area of 3,840 acres located in Pushmataha County, Oklahoma. In connection with the acquisition,
the Company expended $252,526 in cash. In the six months ended December 31, 2024, lease operating expenditures at Pushmataha
were $10,026, and production revenues received were $1,238.

5.       IMPAIRMENT
OF OIL AND GAS PROPERTIES

During the period ended December 31, 2024, the Company
reviewed the capitalized value of its oil and gas properties and conducted a test to determine the current fair value and if any impairment
of the capitalized values was necessary. As a result of this test, the Company determined that the capitalized value exceeded the current
fair value. An impairment charge of $15,761 was recorded as an expense for the period ended December 31, 2024.

6.        REVENUES
AND COST OF REVENUES 

For the six months ended December 31, 2024, the Company
had production revenue of $11,303 compared to revenue of $45,465 for the six months ended December 31, 2023. Refer to the table below
of production and revenue for the period ended December 31, 2024. For the six months ended December 31, 2024 and December 31, 2023 our
cost of revenue, consisting of lease operating expenses and production and excise taxes was $20,779 and $55,649 respectively. 

    Schedule of production and revenue 

    Oil  
    Natural Gas  

    Project 
    Production (BBLS)  
    Avg. Cost ($)  
    Avg. Sales Price