What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2023-06-26 compared with 2022-06-27 · 60 added, 52 removed, 126 unchanged (47% of the section changed)

8 unchanged sentences

The benchmark price of $87.45 per bbl of oil at March 31, 2023 versus $71.72 at March 31, 2022, was adjusted

by lease for gravity, transportation fees and regional price differentials and did not give effect to derivative transactions.

by lease for gravity, transportation fees and market differentials and did not give effect to derivative transactions.

The benchmark

price of $5.96 per mcf of natural gas at March 31, 2023 versus $4.09 at March 31, 2022, was adjusted by lease for BTU content, transportation

fees and regional price differentials.

fees and market differentials.

information concerning our costs incurred for oil and gas operations, net revenues from oil and gas production, estimated future net

52 unchanged sentences

Proved undeveloped

Total net proved reserves (BOE) (1)

Total net proved

reserves (BOE) (1)

PV-10 Value (2)

Present value of future income tax discounted at 10%

Standardized measure of discounted future net cash flows (3)

Present value of future

income tax discounted at 10%

Standardized measure

of discounted future net cash flows (3)

Prices used in Calculating Reserves:

1 unchanged sentence

Oil (per Bbl)

reserve estimates do not include the Company’s interest in the LLC referred to in Item 1.

Business – Company Profile

on page 4 hereto.

PV-10 Value represents the discounted future net cash flows attributable to our proved oil and gas reserves before income tax, discounted

at 10% per annum, which is the most directly comparable GAAP financial measure.

PV-10 is relevant and useful to investors because

it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future

corporate income taxes.

Further, investors may utilize the measure as a basis for comparison of the relative size and value of our

reserves to other companies.

We use this measure when assessing the potential return on investment related to our oil and natural

gas properties.

Our reconciliation of this non-GAAP financial measure is shown in the table as the PV-10, less future income taxes,

discounted at 10% per annum, resulting in the standardized measure of discounted future net cash flows.

The standardized measure

of discounted future net cash flows represents the present value of future cash flows attributable to our proved oil and natural

gas reserves after income tax, discounted at 10%.

accordance with SEC requirement, the standardized measure of discounted future net cash flows was computed by applying 12-month first

day of the month average prices for oil and gas during the fiscal year to the estimated future production of proved oil and gas reserves,

less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves, less

estimated future income tax expenses (based on year-end statutory tax rates, with consideration of future tax rates already legislated)

to be incurred on pretax net cash flows less tax basis of the properties and available credits, and assuming continuation of existing

economic conditions.

prices reflect adjustment by lease for quality, transportation fees and regional price differentials and did not give effect to derivative

transactions.

reserve estimates do not include the Company’s interest in two LLCs referred to in Item

Business – Company Profile on page 4 hereto.

The first LLC has returned $226,725 and 76% of the total investment since inception in fiscal 2020.

PV-10 Value represents the discounted future net cash flows attributable to our proved oil

and gas reserves before income tax, discounted at 10% per annum, which is the most directly

comparable GAAP financial measure.

PV-10 is relevant and useful to investors because it presents

the discounted future net cash flows attributable to our estimated net proved reserves prior

to taking into account future corporate income taxes.

Further, investors may utilize the

measure as a basis for comparison of the relative size and value of our reserves to other

We use this measure when assessing the potential return on investment related

to our oil and natural gas properties.

Our reconciliation of this non-GAAP financial measure

is shown in the table as the PV-10, less future income taxes, discounted at 10% per annum,

resulting in the standardized measure of discounted future net cash flows.

The standardized

measure of discounted future net cash flows represents the present value of future cash flows

attributable to our proved oil and natural gas reserves after income tax, discounted at 10%.

accordance with SEC requirement, the standardized measure of discounted future net cash flows

was computed by applying 12-month first day of the month average prices for oil and gas during

the fiscal year to the estimated future production of proved oil and gas reserves, less estimated

future expenditures (based on year-end costs) to be incurred in developing and producing

the proved reserves, less estimated future income tax expenses (based on year-end statutory

tax rates, with consideration of future tax rates already legislated) to be incurred on pretax

net cash flows less tax basis of the properties and available credits, and assuming continuation

of existing economic conditions.

prices reflect adjustment by lease for quality, transportation fees and market differentials.

fiscal 2023, we added proved reserves of 101 thousand BOE (“MBOE”) through extensions and discoveries, added 52 MBOE through

acquisitions, subtracted 2 MBOE through sales of oil and gas properties and downward revisions of previous estimates of 86 MBOE.

downward revisions are primarily the result of reserves written off due to the five-year limitation and the change in the timing of new

They are primarily working interests on a lease in Reagan County, Texas which are held by production and still in place

to be developed in the future and royalty interests on a lease held by production in Upton County, Texas.

acquisitions, subtracted 54 MBOE for downward revisions of previous estimates.

Such downward revisions are primarily the result of reserves

written off due to the five-year limitation and the change in the timing of new development.

They are primarily royalty interests on

leases in Loving, Pecos and Ward Counties, Texas which are held by production and still in place to be developed in the future.

the fiscal year ending March 31, 2023, we had a working or royalty interest in the development of 59 wells converting reserves of approximately

16 unchanged sentences

following table sets forth our drilling activity in wells in which we own a working interest for the years ended March 31:

Year Ended March 31,

Ended March 31,

Exploratory Wells

Beginning wells in progress

Successful wells

Ending wells in progress

wells in progress

Development Wells

Beginning wells in progress

Successful wells

Ending wells in progress

Beginning wells

wells in progress

information contained in the foregoing table should not be considered indicative of future drilling performance, nor should it be assumed

20 unchanged sentences

The number of net acres is the sum of the fractional interests owned in gross acres.

The following table

sets forth the approximate developed acreage in which we held a leasehold mineral or other interest as of March 31, 2022:

The following table sets

forth the approximate developed acreage in which we held a leasehold mineral or other interest as of March 31, 2023:

Production, Unit Prices and Costs

2 unchanged sentences

for the years ended March 31:

Years Ended March 31,

Production (Bbls)

Ended March 31,

Average Bbls per day (d)

6 unchanged sentences

Production expenses:

Production expenses per BOE

Production expenses per sales dollar

Production and ad valorem taxes:

Production and ad valorem taxes per BOE

Production and ad valorem taxes per sales dollar

Production expenses per

Production and ad valorem

taxes per BOE

Production and ad valorem

taxes per sales dollar

Total oil and gas revenue

natural gas products.

gas production is converted to oil production using a ratio of six Mcf to one Bbl of oil.

on a 365 day year.

Includes condensate.

Includes natural gas products.

Natural gas production is

converted to oil production using a ratio of six Mcf to one Bbl of oil.

Calculated on a 365 day year.

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.

What changed 10-K

Item 2. Properties