1 unchanged sentence
From time to time, the Company may be involved in litigation relating to claims arising out of commercial operations in the normal course of business.
−Removed: As of March 31, 2026, other than the matter described below, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the Company’s results of operations.
+Added: As of June 30, 2026, other than the matter described below, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the Company’s results of operations.
+Added: Gastal Litigation
On June 15, 2022, a Petition for Damages ( Danny Paul Gastal and Ignatius Hoffpauir v.
Petrodome Operating, LLC, et.
−Removed: ) was filed in The 15th Judicial District Court for the Parish of Acadia in the State of Louisiana against a wholly-owned subsidiary of Petrodome Energy, LLC (“Petrodome”) and two other parties (collectively, the “Defendants”) related to a flowline leak on a salt-water disposal well owned by a third party and operated by Petrodome.
+Added: ) was filed in The 15th Judicial District Court for the Parish of Acadia in the State of Louisiana against Petrodome Operating, LLC (“Petrodome”) and two other parties (collectively, the “Defendants”) related to a flowline leak on a salt-water disposal well owned by a third party and operated by Petrodome.
The owner of the property where the leak occurred and his tenant farmer (collectively, the “Plaintiffs”) alleged environmental damage as a result of the leak and sought damages for the cost of remediation, loss of use and loss of income.
2 unchanged sentences
30:29 and presented a “most feasible plan” to remediate the property to the Louisiana Department of Conservation & Energy (“LDCE”) at a January 6, 2026 public hearing.
−Removed: The LDCE approved the plan which is expected to cost approximately $286,000 to implement.
+Added: The LDCE approved the plan which was expected to cost approximately $286,000 to implement.
On or about April 24, 2026, the parties reached a settlement agreement pursuant to which the Defendants agreed to pay the Plaintiffs approximately $10.3 million for damages and to fund and implement the LDCE-approved remediation plan and to diligently perform whatever remediation, restoration, clean-ups, investigation(s), evaluation(s), testing, and/or other work, if any, that the LDCE deems necessary in order to obtain the required no further action letter for the limited admission area.
−Removed: The Company believes that the settlement amount will be fully funded by applicable insurance policies maintained by Petrodome and the well owner.
−Removed: The settlement liability and the insurance proceeds receivable have been recorded in the Company’s condensed consolidated financial statements at and for the three months ended March 31, 2026.
−Removed: The settlement of this claim did not have any impact on the Company’s consolidated results of operations or net cash flows.
−Removed: As a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide the information under this item.
−Removed: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
−Removed: During the three months ended March 31, 2026, the Company did not issue any unregistered equity securities.
−Removed: DEFAULTS UPON SENIOR SECURITIES
−Removed: MINE SAFETY DISCLOSURES
+Added: The settlement amount for damages and the LDCE-approved remediation plan was fully paid by the Company’s insurers in June 2026.
+Added: Drew Estate Litigation
+Added: Petrodome is one of several defendants in litigation filed on December 16, 2025 in the 14th Judicial District Court for the Parish of Calcasieu, State of Louisiana, styled H.C.
+Added: Drew Estate v.
+Added: Mayne & Mertz, Inc., et al.
+Added: The plaintiff alleges, among other things, that historical oil and gas operations on certain property resulted in environmental damage and seeks various forms of relief, including alleged remediation costs and other damages.
+Added: The Company believes the claims asserted against Petrodome are without merit and intends to defend the action vigorously.
+Added: The Company’s insurers have agreed to provide a defense to Petrodome, subject to a reservation of rights under the applicable insurance policies, and have approved the appointment of defense counsel to represent Petrodome in the litigation.
+Added: The Company presently expects that substantially all of Petrodome’s defense costs will continue to be funded by the applicable insurers, subject to the insurers’ reservation of rights.
+Added: As is customary in insurance coverage matters, the insurers have reserved the right to deny or limit coverage based on the terms and conditions of the applicable insurance policies.
+Added: At this stage of the proceedings, the Company is unable to reasonably estimate the ultimate outcome of the litigation or the amount of any potential loss, if any.
+Added: Accordingly, no liability has been recorded with respect to this matter.
+Added: The Company will continue to evaluate the matter as additional information becomes available.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.