SUBSEQUENT EVENTS

9 Months Ended

Jun. 30, 2025

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Oil and Natural Gas Property Dispositions

On August 8, 2025, Barnwell entered into an agreement with an independent third party to sell all of its working interests in its U.S. oil and natural gas assets for a sales price of $2,300,000. The sales price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective date of July 1, 2025 to the closing date August 8, 2025. The U.S. oil and natural gas assets were located in the states of Texas and Oklahoma and were owned by wholly-owned subsidiaries of Barnwell. The Company accounts for its oil and natural gas properties under the full cost method, and thus the carrying value of its U.S. oil and natural gas properties at June 30, 2025 was based on ceiling test parameters mandated by the U.S. Securities and Exchange Commission including a discount rate of 10% and using the 12-month historical rolling average first-day-of-the-month prices, which results in a value that is not necessarily reflective of fair value. The Company estimates it will incur a loss on sale of approximately $700,000 after related income taxes in the quarter ending September 30, 2025. Barnwell will no longer own any oil and natural gas assets in the U.S. as a result of this sale.

Promissory Note Amendment

In August 2025, the Promissory Note received as partial consideration for the sale of Water Resources (see Note 3) was amended to change the due date of the $150,000 installments due on August 15, 2025 and September 15, 2025 to the following schedule: $100,000 on December 15, 2025; $50,000 on February 15, 2026; and $150,000 on March 15, 2026 and to increase the annual interest rate on the Promissory Note from zero to 12% beginning August 15, 2025 and to 18% beginning December 15, 2025.