What changed in this filing

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Item 2. Properties

2024-06-27 compared with 2023-06-26 · 55 added, 61 removed, 125 unchanged (48% of the section changed)

4 unchanged sentences

accordance with current SEC rules, the average prices used in computing reserves at March 31, 2024 were $76.88 per bbl of oil compared

to $74.52 in 2022, an increase of 23%, and $5.68 per mcf of natural gas compared to $4.60 in 2022, an increase of 23%, such prices are

to $92.02 in 2023, a decrease of 16%, and $2.75 per mcf of natural gas compared to $5.68 in 2023, a decrease of 52%, such prices are

based on the 12-month unweighted arithmetic average market prices for sales of oil and natural gas on the first calendar day of each

59 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:

2 unchanged sentences

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

Business – Company Profile on page 4 hereto.

Business – Company Profile

on page 4 hereto.

The first LLC has returned $276,098 and 92% 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.

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 market differentials.

1 unchanged sentence

acquisitions, subtracted 163 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.

Such downward revisions are primarily attributable to

a decrease in crude oil and natural gas prices and partially the result of reserves written off due to the five-year limitation and the

change in the timing of new development.

The reserves written off were primarily royalty interests on leases in DeSoto Parish, Louisiana and Karnes County,

Texas which are held by production and still in place to be developed in the future.

the fiscal year ending March 31, 2024, we had a working or royalty interest in the development of 43 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:

Ended March 31,

Year Ended March 31,

Exploratory Wells

Beginning wells in progress

wells in progress

Successful wells

Ending wells in progress

Development Wells

Beginning wells

wells in progress

Beginning wells in progress

Successful wells

Ending wells in progress

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

1 unchanged sentence

be recovered by us.

addition to the working interests mentioned above, other operators drilled 85 gross wells (.04 net wells) on company-owned minerals and

royalties at no expense to the Company.

We expect the production of our mineral interests will increase as operators continue to drill,

complete and develop our acreage.

We expect to capitalize on this development, which requires no capital expenditure funding from us,

and believe the anticipated aggregate royalty receipts will enable us to grow our cash flows.

A number of the horizontal wells in which

the Company participates involve longer lateral which are more efficient and have greater estimated ultimate recovery.

addition to the working interests mentioned above, other operators drilled 101 gross wells (.02 net wells) on company-owned minerals

and royalties at no expense to the Company.

We expect the production of our mineral interests will increase as operators continue to

drill, complete and develop our acreage.

We expect to capitalize on this development, which requires no capital expenditure funding from

us, and believe the anticipated aggregate royalty receipts will enable us to grow our cash flows.

A number of the horizontal wells in

which the Company participates involve longer lateral which are more efficient and have greater estimated ultimate recovery.

Wells and Acreage

15 unchanged sentences

for the years ended March 31:

Ended March 31,

Years Ended March 31,

Production (Bbls)

Average Bbls per day (d)

6 unchanged sentences

Production expenses:

Production expenses per

Production and ad valorem

taxes per BOE

Production and ad valorem

taxes per sales dollar

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

Total oil and gas revenue

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.

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.

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