Concentrations of Credit Risk

12 Months Ended

Jun. 30, 2021

Major Customers. As a non-operator, we presently market our production through the field operators. The majority of our natural gas, oil, and condensate production is sold to purchasers under short-term (less than 12 months) contracts at market-based prices. The following table identifies customers from whom we derived 10 percent or more of our net oil and natural gas revenues during the years ended June 30, 2021 and 2020. The loss of either one of our oil purchasers or disruption to their respective pipelines could adversely affect our net realized pricing and potentially our near-term production levels. The loss of our NGL purchaser, who trucks NGLs from the field, would not be expected to have a material adverse effect on our operations.


	Year Ended June 30,
Customer	2021		2020
Plains Marketing L.P. (Delhi field oil)	62	%	87	%
Merit Energy Company (Hamilton Dome field oil)	19	%	10	%
All others	19	%	3	%
Total	100	%	100	%

Accounts Receivable. Substantially all of our accounts receivable from field operators result from oil and natural gas sales to third-parties in the oil and natural gas industry. Our concentration of customers in this industry may impact our overall credit risk.

Cash and Cash Equivalents. We are subject to concentrations of credit risk with respect to our cash and cash equivalents, which we attempt to minimize by maintaining our cash and cash equivalents in high quality money market funds. At times, cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation (“FDIC”).