Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 209

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 209
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ee Counties in Oklahoma. Under the Operating Agreement, Okmin’s Joint Venture partner, Blackrock Energy
LLC (“Blackrock”) was the Operator of the project, handling the day-to-day operations on the ground. 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.

The Company, through its
joint venture partner Blackrock, put considerable effort into reworking and rehabilitating these leases. The land owner royalties
on these leases derived from gross revenue production varies from 12.5%
to 23.5%.
State production tax on oil sales is 7%. In the fiscal year ended June 30, 2025, the Company’s share of revenues from oil
and gas sales from the Blackrock Joint Venture totaled $20,294.

The property has been negatively
affected by persistent infrastructure issues, nearly stagnant oil prices, and increasing operating costs. In August 2025, the Company
entered into an agreement with Blackrock to exchange its 50% working interest in the Blackrock Joint Venture for $25,000 cash and an additional
45% joint venture interest in the Pushmataha Gas Field. As a result of this transaction, the Company has disposed of its entire interest
in the Blackrock Joint Venture.

Kansas

In July 2021, the Company
through its wholly owned Kansas subsidiary, Okmin Operations, LLC, entered into an agreement 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. In the fiscal year ended June 30,
2025 lease operating expenses recorded for the Vitt were nominal totaling under $1,000. To date, the Company’s aggregate additional
capital and lease operating expenditures on the lease are approximately $109,000. The lease covers 160 acres and includes eleven existing
oil and gas wells and four water injection wells.

The Company has entered into
an operating agreement covering the Vitt Lease with Petron Oil and Gas LLC (“Petron”), pursuant to which Petron will handle
the reworking of the existing wells and