Dividend Declaration and Share Repurchase Program

Highlights for our Fiscal Year 2022 and Operations Update

? Generated revenue of $108.9 million and net income of $32.6 million.

Returned to shareholders $11.8 million in cash dividends. We have paid out to

? shareholders more than $86.3 million in cash dividends since inception of the

? Funded all operations, development capital expenditures, and dividends out of

Closed the Jonah Field Acquisition on April 1, 2022 and the Williston Basin

Acquisition on January 14, 2022, which included total proved reserves of 7.1

? MMBOE and 6.1 MMBOE, respectively, as of June 30, 2022 as estimated by

Netherland, Sewell & Associates, Inc. ("NSAI") an independent reservoir

Increased proved reserves 55% since prior year-end primarily due to the

? acquisitions of the Jonah Field properties in April 2022 and Williston Basin

? Maintained a strong financial position with low leverage.

Impact of the COVID-19 Pandemic and Geopolitical factors

The global economy has been deeply impacted by the effects of the novel coronavirus ("COVID-19") pandemic and related efforts to mitigate the spread of the disease. These events led to crude oil prices falling to historic lows during the second quarter of 2020 and remaining depressed through much of 2020.

The Board of Directors instituted a cash dividend on common stock in December 2013. We have since paid 35 consecutive quarterly dividends. Distribution of a substantial portion of free cash flow in excess of operating and capital requirements through cash dividends remains a priority of our financial strategy, and it is our long-term goal to increase

As of June 30, 2022, our PUD reserves included 3.6 MMBOE of reserves and approximately $61.7 million of future development costs associated with the Williston Basin properties.

prices used to determine our proved reserves would not have resulted in an impairment of our oil and natural gas properties.

Overview of Cash Flow Activities

(349) 5,765 Net increase (decrease) in cash and cash equivalents $ 3,003 $ (14,385) $ 17,388

Cash provided by operating activities increased $47.7 million during the fiscal year ended June 30, 2022 compared to fiscal year ended June 30, 2021 primarily due to an increased average daily production and an approximate $13.26 per BOE average realized price increase which both contributed to higher revenues in fiscal year 2022.

We reported net income of $32.6 million for the year ended June 30, 2022 compared to a net loss of $16.4 million for the year ended June 30, 2021. The following table summarizes the comparison of financial information for the periods presented:

(1) Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons

of NGLs to one barrel of oil conversion ratio which reflects energy

equivalence and not price equivalence. Natural gas prices per MCF and NGL

prices per barrel often differ significantly from the equivalent amount of

(2) Amounts exclude the impact of cash paid or received on the settlement of

Impairment of Well Lift Inc. - Related Expenses

Net Gain (Loss) on Derivative Contracts

Interest expense increased $0.5 million during the fiscal year ended June 30, 2022 compared to fiscal year 2021 primarily due to the increased borrowings outstanding on our Senior Secured Credit Facility due to our acquisitions throughout the year.

group of other companies in our industry with comparable market capitalizations and, for certain awards, our share price attaining a set target.

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