Company: BSM
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001628280-25-007730
Chunk: 131

Company: Black Stone Minerals, L.P.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 131
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 San Augustine and 10 banked wells in Angelina that will be available to satisfy its drilling commitments in future program years.

 The San Augustine JEA provides for a minimum of nine wells to be drilled in the current (third) program year ending in May 2025, with a minimum of 12 wells to be drilled in the fourth program year scheduled to commence in June 2025 and each program year thereafter. As of December 31, 2024, Aethon had drilled seven wells in the third program year under the San Augustine JEA, with five more wells expected to be drilled by the end of the current program year in May 2025.

The Angelina JEA provides for a minimum 15 wells to be drilled in the current (fourth) program year ending in June 2025 and, each program year thereafter. As of December 31, 2024, Aethon had drilled seven wells in the fourth program year under the Angelina JEA, two of which have been temporarily abandoned and scheduled for plugging as a result of mechanical issues.

Farmout Agreements

We have entered into farmout arrangements designed to reduce our working interest capital expenditures and thereby significantly lower our capital spending other than for mineral and royalty interest acquisitions. Under these agreements, we conveyed our rights to participate in certain non-operated working interest opportunities to external capital providers while retaining value from these interests in the form of additional royalty income or retained economic interests. These farmout arrangements cover our share of working interests under active development by Aethon in San Augustine and Angelina County in East Texas. In September and December 2024, two of our farmout agreements were terminated in San Augustine County. Consistent with our policy to minimize participation in working interests, we do not intend to step into the working interests associated with the terminated agreements. Unless we agree otherwise with Aethon, we believe that Aethon, as operator and the party who has proposed the existing wells, has absorbed and will continue to absorb any non-consented interests.

See "Note 4 – Oil and Natural Gas Properties" to the consolidated financial statements included elsewhere in this Annual Report for additional information about the Aethon JEAs, including the prior time-out and related amendments, and our associated farmout agreements.

6

Our Properties

BSM Land Regions 

We divide the contiguous U.S. into major geographical regions that we refer to as "BSM Land Regions." The following provides an overview of these regions:

•Gulf Coast. The Gulf