Company: OKMN
Filing Date: 2025-02-20
Form Type: 10-Q
Source: 0001079973-25-000298
Chunk: 18

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-02-20
Form: 10-Q
Item: Item 1
Chunk 18
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 Counties in Oklahoma. Under the Operating Agreement, Okmin has a 50% Working Interest in 710 acres and a 25%
interest in 80 acres. The Company’s Joint Venture partner, Blackrock Energy LLC (“Blackrock”), is the operator of the
project. Pursuant to a further agreement entered into on June 10, 2022, the Company added an additional five oil and gas leases across
739 acres to its Joint Venture with Blackrock, thereby expanding the overall project to fifteen leases covering over 1,500 acres. In the
six months ended December 31, 2024, lease operating expenses including taxes recorded across the extended Joint Venture totaled $10,187
and our share of the Joint Venture recorded revenues of $9,710 from oil and gas sales, predominantly oil, compared with $32,931 in revenues
for the corresponding six months ended December 31, 2023.

 Vitt Lease

The Company through its wholly owned Kansas subsidiary,
Okmin Operations, LLC entered into an agreement in July 2021 to acquire a 72.5% Net Revenue Interest in the Vitt Lease located in Neosho
County, Kansas. 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. The lease covers 160 acres and after initial reworking now includes
nine oil wells, two idle wells and four water injection wells. At present the wells are not pumping, as they require additional maintenance
work. As of December 31, 2024, aggregate additional expenditures beyond the purchase totaled approximately $108,550. During the six months
ended December 31, 2024, the Company conducted minimal work on the Vitt lease, so expenditures totaled $550. For the six months ended
December 31, 2024, the Company received $355 in revenue from the project compared to revenues for the six months ending December 31, 2023
of $1,972.

The Vitt Lease has now become a small nominal lease
able to produce oil, though not on a consistent basis as we continue to encounter various maintenance issues that have to be addressed.
The Company continues to explore a number of possibilities for the Vitt Lease, which may include involving a partner in its further development.

West Sheppard Pool

The Company previously had
a 50% joint venture interest in the West Sheppard Pool Field,