Company: OKMN
Filing Date: 2025-02-20
Form Type: 10-Q
Source: 0001079973-25-000298
Chunk: 19

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-02-20
Form: 10-Q
Item: Item 1
Chunk 19
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 a series of leases totaling 1,930 acres located in Okmulgee County, Oklahoma.
The 26 existing wells on the leases range from 850 feet to 1,950 feet in depth with gas production from several zones as their main objective.

11 

As of November 2024, the Company assigned its 50%
interest in the West Sheppard Pool project to Sheppard Pool Operating, LLC, the operator of the project. After Sheppard Pool Operating
has received $22,850 in revenue from the project, the 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 December 2021,
the Company exercised its option and entered into a definitive joint venture and operating agreement with Blackrock to acquire 50% of
Blackrock’s interest in the Pushmataha Gas Field, comprising 6 leases covering an area of 3,840 acres located in Pushmataha County,
Oklahoma. Blackrock had previously entered into a separate option to acquire working interests ranging from 92 -100% in the existing wells
and lease acreage from a third party. In connection with the initial acquisition, the Company expended approximately $253,000 in
cash. Under the terms of the Joint Venture agreement, after deducting operating costs including a flat sum of $1,000 per month to Blackrock
as operator, the Company shall receive all net income from revenues of the project until it has recouped $125,000, thereafter, the parties
shall equally split the income.

The Company
entered into an agreement to become a 50% Joint Venture partner with Blackrock. The leases owned by the Joint Venture are subject to landowner
royalties and other commitments resulting in net revenue interests to the joint venture of between 71% - 76%, with the exception of the
Stephenson well, which has a net revenue interest of approximately 68%. 

Pushmataha has seven existing
gas wells ranging in depth from 10,000 - 12,300 feet. The wells were inactive