Company: OKMN
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001553350-25-000149
Chunk: 10

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-11-25
Form: 10-Q
Item: Item 1
Chunk 10
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 related to the recoverability or classification of asset-carrying amounts or the amounts and
classification of liabilities that may result should the Company be unable to continue as a going concern.

    7 

OKMIN RESOURCES INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2025

4.     OIL AND
GAS PROPERTIES

Oklahoma – Blackrock Joint Venture 

In February 2021, Okmin entered into a Joint Venture
Agreement and Operating Agreement committing $100,000 in the initial phase to acquire working interests in ten oil and gas leases located
in Okmulgee and Muskogee 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 only
$1,268.

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.