The following tables summarize information relative to Barnwell’s oil and natural gas operations, which are conducted in Canada and in the U.S. states of Oklahoma and Texas. Proved reserves are the estimated quantities of oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved producing oil and natural gas reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. The estimated net interests in total proved and proved producing reserves are based upon subjective engineering judgments and may be affected by the limitations inherent in such estimations. The process of estimating reserves is subject to continual revision as additional information becomes available as a result of drilling, testing, reservoir studies and production history. There can be no assurance that such estimates will not be materially revised in subsequent periods.

The following tables summarizes changes in the estimates of Barnwell’s net interests in total proved reserves of oil and natural gas liquids and natural gas, which are located in Canada and the U.S. states of Oklahoma and Texas. All of the information regarding Canadian reserves in this Form 10-K is derived from the report of our independent petroleum reserve engineers, InSite, and is included as an Exhibit to this Form 10-K. All of the information regarding U.S. reserves in this Form 10-K is derived from the reports of our independent petroleum reserve engineers, Ryder Scott, and are included as Exhibits to this Form 10-K. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries and undeveloped locations are more imprecise than estimates of established proved producing oil and natural gas properties. Accordingly, these estimates are expected to change as future information becomes available.

Proved oil and natural gas reserves are the estimated quantities of oil and natural gas that geological and engineering data demonstrate, with reasonable certainty, to be recoverable in future years from known reservoirs under economic and operating conditions (i.e., prices and costs) existing at the time the estimate is made. Proved developed oil and natural gas reserves are proved reserves that can be expected to be recovered through existing wells and equipment in place and under operating methods being utilized at the time the estimates were made.


	Oil & NGL (Bbls)
	Canada	United States	Total
Proved reserves:
Balance at September 30, 2021	640,000	—	640,000
Revisions of previous estimates	154,000	—	154,000
Extensions, discoveries and other additions	285,000	132,000	417,000
Acquisitions of reserves	99,000	—	99,000

Less production	(188,000)	(42,000)	(230,000)
Balance at September 30, 2022	990,000	90,000	1,080,000
Revisions of previous estimates	(42,000)	48,000	6,000
Extensions, discoveries and other additions	199,000	197,000	396,000


Less production	(210,000)	(46,000)	(256,000)
Proved Reserves, September 30, 2023	937,000	289,000	1,226,000
Proved Developed Reserves, September 30, 2023	827,000	289,000	1,116,000
Proved Undeveloped Reserves, September 30, 2023	110,000	—	110,000


	Natural Gas (Mcf)
	Canada	United States	Total
Proved reserves:
Balance at September 30, 2021	2,913,000	—	2,913,000
Revisions of previous estimates	968,000	—	968,000
Extensions, discoveries and other additions	1,200,000	658,000	1,858,000
Acquisitions of reserves	223,000	—	223,000
Less sales of reserves	(13,000)	—	(13,000)
Less production	(772,000)	(192,000)	(964,000)
Balance at September 30, 2022	4,519,000	466,000	4,985,000
Revisions of previous estimates	435,000	387,000	822,000
Extensions, discoveries and other additions	1,079,000	1,078,000	2,157,000


Less production	(1,023,000)	(240,000)	(1,263,000)
Proved Reserves, September 30, 2023	5,010,000	1,691,000	6,701,000
Proved Developed Reserves, September 30, 2023	4,402,000	1,691,000	6,093,000
Proved Undeveloped Reserves, September 30, 2023	608,000	—	608,000


	Total Equivalent Reserves (Boe)
	Canada	United States	Total
Proved reserves:
Balance at September 30, 2021	1,142,000	—	1,142,000
Revisions of previous estimates	321,000	—	321,000
Extensions, discoveries and other additions	492,000	245,000	737,000
Acquisitions of reserves	137,000	—	137,000
Less sales of reserves	(2,000)	—	(2,000)
Less production	(321,000)	(75,000)	(396,000)
Balance at September 30, 2022	1,769,000	170,000	1,939,000
Revisions of previous estimates	5,000	110,000	115,000
Extensions, discoveries and other additions	379,000	377,000	756,000


Less production	(381,000)	(86,000)	(467,000)
Proved Reserves, September 30, 2023	1,772,000	571,000	2,343,000
Proved Developed Reserves, September 30, 2023	1,561,000	571,000	2,132,000
Proved Undeveloped Reserves, September 30, 2023	211,000	—	211,000


	September 30, 2023
	Canada		United States		Total
Proved properties	$	74,440,000	$	6,411,000	$	80,851,000
Unproved properties	—		—		—
Total capitalized costs	74,440,000		6,411,000		80,851,000
Accumulated depletion, depreciation, and impairment	58,477,000		1,072,000		59,549,000
Net capitalized costs	$	15,963,000	$	5,339,000	$	21,302,000


	September 30, 2022
	Canada		United States		Total
Proved properties	$	66,825,000	$	1,058,000	$	67,883,000
Unproved properties	—		—		—
Total capitalized costs	66,825,000		1,058,000		67,883,000
Accumulated depletion, depreciation, and impairment	54,248,000		403,000		54,651,000
Net capitalized costs	$	12,577,000	$	655,000	$	13,232,000


	Year ended September 30, 2023
	Canada		United States		Total
Acquisition of properties:
Proved	$	66,000	$	—	$	66,000
Unproved	—		—		—
Exploration costs	461,000		255,000		716,000
Development costs	6,331,000		5,099,000		11,430,000
Total	$	6,858,000	$	5,354,000	$	12,212,000


	Year ended September 30, 2022
	Canada		United States		Total
Acquisition of properties:
Proved	$	3,247,000	$	—	$	3,247,000
Unproved	—		—		—
Exploration costs	55,000		—		55,000
Development costs	10,574,000		(121,000)		10,453,000
Total	$	13,876,000	$	(121,000)	$	13,755,000


	Year ended September 30, 2023
	Canada		United States		Total
Net revenues	$	16,630,000	$	2,746,000	$	19,376,000
Production costs	(9,859,000)		(575,000)		(10,434,000)
Depletion	(3,600,000)		(669,000)		(4,269,000)

Pre-tax results of operations (1)	3,171,000		1,502,000		4,673,000
Estimated income tax expense (2)	107,000		44,000		151,000
Results of operations (1)	$	3,064,000	$	1,458,000	$	4,522,000


	Year ended September 30, 2022
	Canada		United States		Total
Net revenues	$	19,085,000	$	3,496,000	$	22,581,000
Production costs	(8,999,000)		(440,000)		(9,439,000)
Depletion	(2,217,000)		(389,000)		(2,606,000)

Pre-tax results of operations (1)	7,869,000		2,667,000		10,536,000
Estimated income tax expense (2)	—		107,000		107,000
Results of operations (1)	$	7,869,000	$	2,560,000	$	10,429,000

The following tables utilize reserve and production data estimated by independent petroleum reserve engineers. The information may be useful for certain comparison purposes but should not be solely relied upon in evaluating Barnwell or its performance. Moreover, the projections should not be construed as realistic estimates of future cash flows, nor should the standardized measure be viewed as representing current value.

The estimated future cash flows at September 30, 2023 and 2022 were based on average sales prices in effect on the first day of the month for the preceding twelve month period in accordance with SEC Release No. 33-8995. The future production and development costs represent the estimated future expenditures that we will incur to develop and produce the proved reserves, assuming continuation of existing economic conditions. The future income tax expenses were computed by applying statutory income tax rates in existence at September 30, 2023 and 2022 to the future pre-tax net cash flows relating to proved reserves, net of the tax basis of the properties involved.

Material revisions to reserve estimates may occur in the future, development and production of the oil and natural gas reserves may not occur in the periods assumed and actual prices realized and actual costs incurred are expected to vary significantly from those used. Management does not rely upon this information in making investment and operating decisions; rather, those decisions are based upon a wide range of factors, including estimates of probable reserves as well as proved reserves and price and cost assumptions different than those reflected herein.


	Year ended September 30, 2023
	Canada		United States		Total
Future cash inflows	$	73,429,000	$	15,995,000	$	89,424,000
Future production costs	(41,935,000)		(4,168,000)		(46,103,000)
Future development costs	(2,958,000)		—		(2,958,000)
Future income tax expenses	(1,512,000)		(264,000)		(1,776,000)
Future net cash flows excluding abandonment, decommissioning and reclamation	27,024,000		11,563,000		38,587,000
Future abandonment, decommissioning and reclamation	(18,585,000)		(42,000)		(18,627,000)
Future net cash flows	8,439,000		11,521,000		19,960,000
10% annual discount for timing of cash flows	4,790,000		(4,837,000)		(47,000)
Standardized measure of discounted future net cash flows	$	13,229,000	$	6,684,000	$	19,913,000


	Year ended September 30, 2022
	Canada		United States		Total
Future cash inflows	$	93,658,000	$	6,676,000	$	100,334,000
Future production costs	(44,523,000)		(832,000)		(45,355,000)
Future development costs	(274,000)		—		(274,000)
Future income tax expenses	(6,908,000)		(233,000)		(7,141,000)
Future net cash flows excluding abandonment, decommissioning and reclamation	41,953,000		5,611,000		47,564,000
Future abandonment, decommissioning and reclamation	(16,719,000)		(11,000)		(16,730,000)
Future net cash flows	25,234,000		5,600,000		30,834,000
10% annual discount for timing of cash flows	(1,144,000)		(1,812,000)		(2,956,000)
Standardized measure of discounted future net cash flows	$	24,090,000	$	3,788,000	$	27,878,000


	Year ended September 30,
	2023		2022
Beginning of year	$	27,878,000	$	2,645,000
Sales of oil and natural gas produced, net of production costs	(8,942,000)		(13,142,000)
Net changes in prices and production costs, net of royalties and wellhead taxes	(11,913,000)		27,828,000
Extensions and discoveries	10,767,000		8,889,000
Net change due to purchases and sales of minerals in place	—		2,451,000

Changes in future development costs	(2,959,000)		—
Revisions of previous quantity estimates	2,227,000		4,270,000
Net change in income taxes	2,868,000		(4,774,000)
Accretion of discount	905,000		(1,566,000)
Other - changes in the timing of future production and other	(1,202,000)		801,000
Other - net change in Canadian dollar translation rate	284,000		476,000
Net change	(7,965,000)		25,233,000
End of year	$	19,913,000	$	27,878,000