Note 3. Oil and Gas Investments

On February 1, 2018, the Partnership completed its first purchase (“Acquisition No. 1”) in the Bakken Assets for approximately $90.5 million, including all closing costs and assumed liabilities. On August 31, 2018, the Partnership completed its second purchase of an additional non-operated working interest in the Bakken Assets for approximately $81.3 million, including all closing costs and assumed liabilities. From September 1, 2017, the effective date of Acquisition No. 1, to June 30, 2026, the Partnership has participated in the drilling of 263 wells, of which 249 have been completed as of June 30, 2026. As of June 30, 2026, the Partnership’s ownership of the Bakken Assets consisted of an approximate 5% non-operated working interest in 450 producing wells.

The Partnership incurred approximately $3.2 million and $1.4 million in capital drilling and completion costs for the six-month periods ended June 30, 2026 and 2025, respectively. In  October and  November 2025, the Partnership elected to participate in the drilling and completion of 12 new wells; the Partnership's share of the estimated capital expenditures for these 12 wells is approximately $9 million. Drilling began on these wells during the fourth quarter of 2025, and approximately $4.8 million in capital costs had been incurred as of  June 30, 2026. The Partnership anticipates its operators will complete these wells and turn to sales in the third quarter of 2026. Therefore, the majority of the remaining capital costs are estimated to be incurred through the third quarter of 2026. Since the Partnership is not the operator of any of its oil and natural gas properties, it is difficult to predict the timing of drilling and completion of these wells and their associated capital expenditures. Current estimated capital expenditures could be significantly different from amounts actually invested.