<SEC-DOCUMENT>0001140361-22-011372.txt : 20220328
<SEC-HEADER>0001140361-22-011372.hdr.sgml : 20220328
<ACCEPTANCE-DATETIME>20220328163740
ACCESSION NUMBER:		0001140361-22-011372
CONFORMED SUBMISSION TYPE:	ARS
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20210930
FILED AS OF DATE:		20220328
DATE AS OF CHANGE:		20220328
EFFECTIVENESS DATE:		20220328

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BARNWELL INDUSTRIES INC
		CENTRAL INDEX KEY:			0000010048
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				720496921
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		ARS
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-05103
		FILM NUMBER:		22775904

	BUSINESS ADDRESS:	
		STREET 1:		1100 ALAKEA ST.
		STREET 2:		SUITE 500
		CITY:			HONOLULU
		STATE:			HI
		ZIP:			96813
		BUSINESS PHONE:		808-531-8400

	MAIL ADDRESS:	
		STREET 1:		1100 ALAKEA ST.
		STREET 2:		SUITE 500
		CITY:			HONOLULU
		STATE:			HI
		ZIP:			96813

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BMA CORP/TN
		DATE OF NAME CHANGE:	19770324

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BARNWELL OFFSHORE INC
		DATE OF NAME CHANGE:	19671101
</SEC-HEADER>
<DOCUMENT>
<TYPE>ARS
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<DESCRIPTION>ARS
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  <p style="font: italic bold 18pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; color: Black;">Barnwell Industries, Inc.</font></p>
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  <p style="font: italic bold 18pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: right;"><font style="font-family: 'Times New Roman'; color: Black;">2021 Annual Report</font></p>
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        <td style="color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
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        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black; text-indent: -0.125in; padding-left: 0.25in">&#160;</td>
        <td style="color: Black">&#160;</td>
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        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
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        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
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        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
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  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

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        <td style="color: Black; text-indent: -0.125in; padding-left: 0.25in">&#160;</td>
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      <tr style="text-align: center; vertical-align: bottom">
        <td style="color: Black; text-indent: -0.125in; padding-left: 0.25in">&#160;</td>
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        <td style="padding-bottom: 1pt; color: Black; font-weight: bold">&#160;</td>
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        <td style="padding-bottom: 1pt; color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black">&#160;</td>
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        <td style="width: 1%; color: Black; padding-bottom: 2.5pt">&#160;</td>
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        <td style="color: Black; text-indent: -0.125in; padding-left: 0.25in">&#160;</td>
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        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
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        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black">&#160;</td>
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        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
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        <td style="color: Black">&#160;</td>
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        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black; font-weight: bold; text-align: left">&#160;</td>
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        <td style="color: Black; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; color: Black; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; color: Black; text-align: right">890,000</td>
        <td style="padding-bottom: 1pt; color: Black; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; color: Black; text-align: left">&#160;</td>
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        <td style="padding-bottom: 2.5pt; color: Black; font-weight: bold; text-align: left">&#160;</td>
        <td style="color: Black; padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">535,000</td>
        <td style="padding-bottom: 2.5pt; color: Black; text-align: left">&#160;</td>
        <td style="color: Black; padding-bottom: 2.5pt">&#160;</td>
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        <td style="color: Black; padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">413,000</td>
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        <td style="color: Black; text-indent: -0.125in; padding-left: 0.25in">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; color: Black; text-align: right">2,620,000</td>
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        <td style="color: Black; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; color: Black; text-align: right">2,656,000</td>
        <td style="padding-bottom: 1pt; color: Black; text-align: left">&#160;</td>
        <td style="color: Black; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; color: Black; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; color: Black; text-align: right">-</td>
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        <td style="padding-bottom: 2.5pt; color: Black; font-weight: bold; text-align: left">&#160;</td>
        <td style="color: Black; padding-bottom: 2.5pt">&#160;</td>
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        <td style="color: Black; padding-bottom: 2.5pt">&#160;</td>
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        <td style="color: Black; padding-bottom: 2.5pt">&#160;</td>
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        <td style="padding-bottom: 2.5pt; color: Black; text-align: left">&#160;</td>
        <td style="color: Black; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; color: Black; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; color: Black; text-align: right">3,005,000</td>
        <td style="padding-bottom: 2.5pt; color: Black; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="color: Black; text-indent: -0.125in; padding-left: 0.25in">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black">&#160;</td>
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        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black">&#160;</td>
        <td style="color: Black; text-align: left">&#160;</td>
        <td style="color: Black; text-align: right">&#160;</td>
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        <td style="color: Black; font-weight: bold; text-align: left">&#160;</td>
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        <td style="color: Black; text-align: left">&#160;</td>
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        <td style="color: Black; text-align: left">&#160;</td>
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        <td style="color: Black; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; color: Black; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; color: Black; text-align: left">&#160;</td>
        <td style="color: Black; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; color: Black; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; color: Black; text-align: right">1,342,000</td>
        <td style="padding-bottom: 1pt; color: Black; text-align: left">&#160;</td>
        <td style="color: Black; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; color: Black; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; color: Black; text-align: right">1,355,000</td>
        <td style="padding-bottom: 1pt; color: Black; text-align: left">&#160;</td>
        <td style="color: Black; padding-bottom: 1pt">&#160;</td>
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        <td style="color: Black; padding-bottom: 2.5pt">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">TO OUR SHAREHOLDERS:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">We are pleased to report that Barnwell returned to
      profitability in fiscal 2021. We overcame the challenges of the COVID-19 pandemic and low commodity prices and firmly believe that the decisions by our Board of Directors and management over the last few years position us for a strong future.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">For fiscal 2021, we reported net earnings of $6,253,000,
      our best year since 2008 and achieved greatly improved operating results, revenues and cash flows through December 31, 2021. We reported a profit of $1,073,000 for the three months ended December 31, 2021 and our outlook for fiscal 2022 continues to
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Fiscal 2021 saw the accomplishment of several objectives of
      the Company, including the sale of our office condominium in Honolulu, Hawaii for $2 million, the implementation of an at-the-market equity financing, which resulted in the Company selling 1,167,987 shares of common stock for net proceeds of
      $3,784,000. In addition, the Company terminated a post-retirement medical benefit plan generating non-cash income for the Company during fiscal 2021. This assisted in our return to compliance with the NYSE American listing requirements and, further,
      as a result of our profitability and improved cashflow, the removal of a going concern caveat from our financial statements.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Our Canadian operations showed strong results throughout
      fiscal 2021, with $10,254,000 in oil and gas revenue for fiscal 2021 as compared to $6,693,000 for fiscal 2020. For the quarter ended December 31, 2021, our first quarter of fiscal 2022, oil and gas revenues were $3,920,000, more than doubling our
      first quarter oil and gas revenues of fiscal 2021. Our Twining property, acquired in 2018, is contributing significantly to these improved results. The initial well drilled in January 2019 continues to produce 110 barrels of oil per day, with
      virtually no decline. This well reached payout within two years of being drilled, despite the low commodities prices encountered throughout calendar year 2020. In December 2021, we participated in the drilling of three new wells at Twining; one well
      100% owned by Barnwell and two wells in partnership with Pine Cliff Energy Ltd., a larger Canadian public company with whom we are a partner in the Twining area. The initial results of one of the Pine Cliff wells indicates oil production in excess of
      400 barrels per day. At the time of writing this letter, the other two wells are just coming on line and results will be reported in future financial statements and press releases.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">In January 2022, the Company acquired additional working
      interests in our core Twining property for approximately $1,250,000; those interests are currently generating daily production of approximately 65 barrels of oil, 10 barrels of natural gas liquids and 170 MCF of natural gas. During fiscal 2021, the
      Company began recognizing revenue from the investment it made as a passive partner in oil and gas development properties in Oklahoma.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">The land division saw eight lots sold during fiscal 2021
      which resulted in the Company recognizing $5,793,000 in equity in income of affiliates and receiving over $6 million in net cash distributions from the land partnerships, including a $459,000 preferred return. In our first quarter</font><font style="font: 10pt 'Times New Roman'; color: Black;"> of fiscal 2022, three lots were sold by the Kukio resort development partnerships at Kaupulehu and the Company received $600,000 in percentage of sales payments and $1,075,000 in net cash
      distributions. Two additional lots closed in early March 2022, leaving only 4 unsold developer lots in Increment I, although resale activity and the sale of memberships will continue to produce revenues from our interest in that project. This recent
      sales activity will be reflected in our results for the quarter ending March 31, 2022.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 35pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"> <br>
    </font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"> <br>
    </font></p>
  <p style="font: 8pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; color: Black;">1100 Alakea Street &#8226; Suite 500 &#8226; Honolulu, Hawaii 96813 &#8226; Telephone (808) 531-8400 &#8226; Fax (808)
      531-7181</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: left;"><font style="font: 10pt 'Times New Roman'; color: Black;"><img alt="" src="img001_v1.jpg">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
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      &#8220;Management and the Board have successfully navigated the vicissitudes of the Covid pandemic while shedding non-core assets, deploying capital in a multi-well program in the Lower 48, engaging in new stable business lines while effecting cost cutting
      strategies.&#8221;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
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      fiscal 2022, the Company had $10,676,000 in working capital, including $12,142,000 in cash and cash equivalents. This demonstrates a significant improvement in our liquidity, as compared to cash of $5,334,000 at December 31, 2020. Other than a
      $47,000 Canadian Covid-related loan facility and long-term oil and gas abandonment liabilities, the Company has no long term debt. The strong balance sheet and prudent management of our core assets allowed us to regain profitability and navigate
      through a very challenging period.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Alexander C. Kinzler, Chief Executive Officer and
      President, comments that &#8220;Over the past few years, management has labored to re-position the expense structure of the Company, focus on our core competencies in local real estate and Canadian oil and gas, and continue to build a substantial cash
      position which we will use to increase shareholder value. The current WTI oil price exceeds $100 per barrel and with significant new production coming online during our fiscal second quarter of 2022, we anticipate continued strong results and further
      reinvestment in the Twining property.&#8221;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">On behalf of the Board of Directors of Barnwell Industries, Inc., we thank you,
      our shareholders, for your support.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">For the Board of Directors,</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" border="0" style="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: top">
        <td style="padding-left: 0.5in; text-align: left; vertical-align: bottom">&#160;<img alt="" src="img004_v1.jpg"></td>
        <td><img alt="" src="img005_v1.jpg">&#160;</td>
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        <td style="width: 40%">
          <p style="margin-top: 0; margin-bottom: 0; margin-left: 0.5in"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Peter J. O&#8217;Malley</font></p>
          <p style="margin-top: 0; margin-bottom: 0; margin-left: 0.5in"><font style="font: 10pt 'Times New Roman'; color: Black;">Chairman of the Board </font></p>
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          <p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt 'Times New Roman'; color: Black;">Chief Executive Officer,</font></p>
          <p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt 'Times New Roman'; color: Black;">President and Director</font></p>
        </td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><b>UNITED STATES SECURITIES AND EXCHANGE COMMISSION </b></font><br>
    <font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><b>WASHINGTON, D.C. 20549</b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><b>FORM 10-K</b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font: 10pt 'Times New Roman'; color: Black;">(Mark One)</font></p>
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      <tr style="vertical-align: top; text-align: justify">
        <td style="width: 0.25in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#9746;</font></td>
        <td><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><b>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></td>
      </tr>
      <tr style="vertical-align: top; text-align: justify">
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><b>For the fiscal year ended September 30, 2021</b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">or</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
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        <td style="width: 0.25in; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#9744;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><b>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></td>
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  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><b>Commission File Number 1-5103</b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font: 10pt 'Times New Roman'; color: Black;"><b>&#160;</b></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">BARNWELL INDUSTRIES, INC.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">(Exact name of registrant as specified in its charter)</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font: 10pt 'Times New Roman'; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font: 10pt 'Times New Roman'; color: Black;"></font></p>
  <table cellspacing="0" cellpadding="0" border="0" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

      <tr style="vertical-align: top">
        <td style="text-align: center; width: 50%;"><font style="font: 10pt 'Times New Roman';"><b>Delaware</b></font></td>
        <td style="text-align: center; width: 49.92%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>72-0496921</b></font></td>
      </tr>
      <tr style="vertical-align: top">
        <td style="text-align: center; width: 50%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(State or other jurisdiction of incorporation or organization)</font></td>
        <td style="text-align: center; width: 49.92%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(I.R.S. Employer Identification No.)</font></td>
      </tr>
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        <td rowspan="1" style="text-align: center; width: 50%;">&#160;</td>
        <td rowspan="1" style="text-align: center; width: 49.92%;">&#160;</td>
      </tr>
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        <td style="text-align: center; width: 50%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1100 Alakea Street, Suite 500, Honolulu, Hawaii</b></font></td>
        <td style="text-align: center; width: 49.92%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>96813-2840</b></font></td>
      </tr>
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        <td style="text-align: center; width: 50%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Address of principal executive offices)</font></td>
        <td style="text-align: center; width: 49.92%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Zip code)</font></td>
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        <td style="text-align: center; width: 50%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Registrant&#8217;s telephone number, including area code:</font></td>
        <td style="text-align: center; width: 49.92%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>(808) 531-8400</b></font></td>
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        <td style="text-align: center;" colspan="3"><font style="font: 10pt 'Times New Roman';"><b>Securities registered pursuant to Section 12(b) of the Act:</b></font></td>
      </tr>
      <tr style="vertical-align: top">
        <td style="text-align: center; width: 33%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: center; width: 34%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: center; width: 33%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top">
        <td style="text-align: center; width: 33%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>Title of each class</u></b></font></td>
        <td style="text-align: center; width: 34%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>Trading Symbol(s)</u></b></font></td>
        <td style="text-align: center; width: 33%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>Name of each exchange on which registered</u></b></font></td>
      </tr>
      <tr style="vertical-align: top">
        <td style="text-align: center; width: 33%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Common Stock, $0.50 par value</font></td>
        <td style="text-align: center; width: 34%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BRN</font></td>
        <td style="text-align: center; width: 33%;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">NYSE American</font></td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Securities registered pursuant to Section 12(g) of the Act: None</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of
      the Securities Act. &#9744; Yes &#9746; No</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Indicate by check mark whether the registrant (1) has filed all reports
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Indicate by check mark whether the registrant has submitted electronically
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Indicate by check mark whether the registrant is a large accelerated filer, an
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        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
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        <td style="font: 10pt 'Times New Roman';">&#160;</td>
        <td style="font: 10pt 'Times New Roman';">&#160;</td>
        <td style="padding-top: 1.7pt; padding-left: 47.1pt; font: 10pt 'Times New Roman';">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
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      attestation to its management&#8217;s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its
      audit report. &#9744;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Indicate by check mark whether the registrant is a shell company (as defined
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">The aggregate market value of the voting common stock held by non-affiliates of the registrant,
      computed by reference to the closing price of a share of common stock on March 31, 2021 (the last business day of the registrant&#8217;s most recently completed second fiscal quarter) was $9,903,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">As of December 10, 2021 there were 9,445,625 shares of common stock outstanding.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><u>Documents Incorporated by Reference</u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0pt; width: 100%;">

      <tr style="vertical-align: top; text-align: justify">
        <td style="width: 0.5in"></td>
        <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">1.</font></td>
        <td><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Proxy statement, to be forwarded to stockholders on or about January 14, 2022, is incorporated by reference in Part III hereof.</font></td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">TABLE OF CONTENTS</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';" colspan="2"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; color: blue;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"></font></p>
        </td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom;">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><u>Page</u></font></p>
        </td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);" colspan="2">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><a href="#a001_v1">Glossary of Terms</a></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);">3</td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);" colspan="2"><font style="font: 10pt 'Times New Roman'; color: Black;"><a href="#a002_v1">PART I</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; width: 10%; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; width: 9%; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; width: 73%; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a003_v1">Discussion of Forward-Looking Statements</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; width: 8%; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">4</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a004_v1">Item 1.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a004_v1">Business</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">5</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a005_v1">Item 1A.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a005_v1">Risk Factors</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">20</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a006_v1">Item 1B.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a006_v1">Unresolved Staff Comments</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">34</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a007_v1">Item 2.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a007_v1">Properties</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">34</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a008_v1">Item 3.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a008_v1">Legal Proceedings</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">34</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a009_v1">Item 4.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a009_v1">Mine Safety Disclosures</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">34</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);" colspan="2"><font style="font: 10pt 'Times New Roman'; color: Black;"><a href="#a010_v1">PART II</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a011_v1">Item 5.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a011_v1">Market For Registrant&#8217;s Common Equity, Related Stockholder Matters and
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        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; color: blue;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">35</font></p>
        </td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a012_v1">Item 6.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a012_v1">Selected Financial Data</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">35</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a013_v1">Item 7.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a013_v1">Management&#8217;s Discussion and Analysis of Financial Condition and Results
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        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; color: blue;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">36</font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a014_v1">Item 7A.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a014_v1">Quantitative and Qualitative Disclosures About Market Risk</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">60</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a015_v1">Item 8.</a></font></td>
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        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">61</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a016_v1">Item 9.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a016_v1">Changes in and Disagreements with Accountants on Accounting and
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        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; color: blue;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">117</font></p>
        </td>
      </tr>
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        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a017_v1">Item 9A.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a017_v1">Controls and Procedures</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">117</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a018_v1">Item 9B.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a018_v1">Other Information</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">117</font></td>
      </tr>
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        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);" colspan="2"><font style="font: 10pt 'Times New Roman'; color: Black;"><a href="#a019_v1">PART III</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a020_v1">Item 10.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a020_v1">Directors, Executive Officers and Corporate Governance</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">118</font></td>
      </tr>
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        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a021_v1">Item 11.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a021_v1">Executive Compensation</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">118</font></td>
      </tr>
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        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a022_v1">Item 12.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a022_v1">Security Ownership of Certain Beneficial Owners and Management and
              Related Stockholder Matters</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; color: blue;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">118</font></p>
        </td>
      </tr>
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        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a023_v1">Item 13.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a023_v1">Certain Relationships and Related Transactions, and Director
              Independence</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; color: blue;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">119</font></p>
        </td>
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        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a024_v1">Item 14.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a024_v1">Principal Accounting Fees and Services</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">119</font></td>
      </tr>
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        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);" colspan="2"><font style="font: 10pt 'Times New Roman'; color: Black;"><a href="#a025_v1">PART IV</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a026_v1">Item 15.</a></font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a026_v1">Exhibits, Financial Statement Schedules</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">120</font></td>
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        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a027_v1">Signatures</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">122</font></td>
      </tr>
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        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;"><a href="#a028_v1">Index to Exhibits</a></font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right; vertical-align: bottom; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">124</font></td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">2</font></div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font: 10pt 'Times New Roman'; color: Black;"><b><a name="a001_v1"></a>GLOSSARY OF TERMS</b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Defined below are certain terms used in this Form 10-K:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 20%; font: 10pt 'Times New Roman'; border-bottom: 1pt solid Black;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Terms</font></td>
        <td style="width: 4%; font: 10pt 'Times New Roman'; padding-bottom: 1pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="width: 76%; font: 10pt 'Times New Roman'; border-bottom: 1pt solid Black; padding-left: 0.25in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Definitions</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">AER</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Alberta Energy Regulator</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">ARO</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Asset retirement obligation</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">ASC</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Accounting Standards Codification</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">ASU</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Accounting Standards Update</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Barnwell of Canada</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Barnwell of Canada, Limited</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Bbl(s)</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">stock tank barrel(s) of oil equivalent to 42 U.S. gallons</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Boe</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">barrel of oil equivalent at the rate of 5.8 Mcf per Bbl of oil or NGL</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">FASB</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Financial Accounting Standards Board</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">GAAP</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">U.S. generally accepted accounting principles</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Gross</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Total number of acres or wells in which Barnwell owns an interest; includes interests owned of record by
            Barnwell and, in addition, the portion(s) owned by others; for example, a 50% interest in a 320 acre lease represents 320 gross acres and a 50% interest in a well represents 1 gross well. In the context of production volumes, gross represents
            amounts before deduction of the royalty share due others.</font></td>
      </tr>
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        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">InSite</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">InSite Petroleum Consultants Ltd.</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD I</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD Acquisition, LLLP, formerly known as WB KD Acquisition, LLC</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD II</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD Acquisition II, LP, formerly known as WB KD Acquisition, II, LLC</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD Development</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD Development, LLC</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD Kona</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD Kona 2013 LLLP</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KKM Makai</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KKM Makai, LLLP</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Kukio Resort Land</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">The following partnerships in which Barnwell owns non-controlling interest:</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Development</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD Kukio Resorts, LLLP (&#8220;KD Kukio Resorts&#8221;)</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Partnerships</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD Maniniowali, LLLP (&#8220;KD Maniniowali&#8221;)</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">KD Kaupulehu, LLLP, which consists of KD I and KD II (&#8220;KDK&#8221;)</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">LGX</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">LGX Oil &amp; Gas Ltd.</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">LLR</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Licensee Liability Rating</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">LMR</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Liability Management Ratio</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">MBbls</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">thousands of barrels of oil</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Mcf</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">one thousand cubic feet of natural gas at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Mcfe</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Mcf equivalent at the rate of 1 Bbl = 5.8 Mcf</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">MMcf</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">one million cubic feet of natural gas</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Net</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Barnwell&#8217;s aggregate interest in the total acres or wells; for example, a 50% interest in a 320 acre lease
            represents 160 net acres and a 50% interest in a well represents 0.5 net well. In the context of production volumes, net represents amounts after deduction of the royalty share due others.</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">NGL(s)</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">natural gas liquid(s)</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Octavian Oil</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Octavian Oil, Ltd.</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">OPEC</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Organization of the Petroleum Exporting Countries</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">OWA</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Orphan Well Association</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">SEC</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">United States Securities and Exchange Commission</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">VIE</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Variable interest entity</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Water Resources</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">-</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Water Resources International, Inc.</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">WIP</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; padding-left: 0.125in;"><font style="font-family: 'Times New Roman'; font-size: 10pt; color: Black;">Working Interest Partners</font></td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">3</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a002_v1"></a>PART I</b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><a name="a003_v1"></a><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION</b></font><br>
    <font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>FOR THE PURPOSE OF &#8220;SAFE HARBOR&#8221; PROVISIONS OF THE</b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995</b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>This Form 10-K, and the documents incorporated herein by reference,
        contain &#8220;forward-looking statements&#8221; within the meaning of the Private Securities Litigation Reform Act of 1995 (&#8220;PSLRA&#8221;). A forward-looking statement is one which is based on current expectations of future events or conditions and does not relate
        to historical or current facts. These statements include various estimates, forecasts, projections of Barnwell Industries, Inc.&#8217;s (referred to herein together with its majority-owned subsidiaries as &#8220;Barnwell,&#8221; &#8220;we,&#8221; &#8220;our,&#8221; &#8220;us&#8221; or the &#8220;Company&#8221;)
        future performance, statements of Barnwell&#8217;s plans and objectives and other similar statements. All such statements we make are forward-looking statements made under the safe harbor of the PSLRA, except to the extent such statements relate to the
        operations of a partnership or limited liability company. Forward-looking statements include phrases such as &#8220;expects,&#8221; &#8220;anticipates,&#8221; &#8220;intends,&#8221; &#8220;plans,&#8221; &#8220;believes,&#8221; &#8220;predicts,&#8221; &#8220;estimates,&#8221; &#8220;assumes,&#8221; &#8220;projects,&#8221; &#8220;may,&#8221; &#8220;will,&#8221; &#8220;will be,&#8221;
        &#8220;should,&#8221; or similar expressions. Although Barnwell believes that its current expectations are based on reasonable assumptions, it cannot assure that the expectations contained in such forward-looking statements will be achieved. Forward-looking
        statements involve risks, uncertainties and assumptions which could cause actual results to differ materially from those contained in such statements. Investors should not place undue reliance on these forward-looking statements, as they speak only
        as of the date of filing of this Form 10-K, and Barnwell expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein.</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Among the important factors that could cause actual results to differ
        materially from those in the forward-looking statements are domestic and international general economic conditions, such as recessionary trends and inflation; domestic and international political, legislative, economic, regulatory and legal
        actions, including changes in the policies of the Organization of the Petroleum Exporting Countries or other developments involving or affecting oil and natural gas producing countries; military conflict, embargoes, internal instability or actions
        or reactions of the governments of the United States and/or Canada in anticipation of or in response to such developments; interest costs, restrictions on production, restrictions on imports and exports in both the United States and Canada, the
        maintenance of specified reserves, tax increases and retroactive tax claims, royalty increases, expropriation of property, cancellation of contract rights, environmental protection controls, environmental compliance requirements and laws pertaining
        to workers&#8217; health and safety; the condition of Hawaii&#8217;s real estate market, including the level of real estate activity and prices, the demand for new housing and second homes on the island of Hawaii, the rate of increase in the cost of building
        materials and labor, the introduction of building code modifications, changes to zoning laws, the condition of Hawaii&#8217;s tourism industry and the level of confidence in Hawaii&#8217;s economy; levels of land development activity in Hawaii; levels of
        demand for water well drilling and pump installation in Hawaii; the potential liability resulting from pending or future litigation; the Company&#8217;s acquisition or disposition of assets; the effects of changed accounting rules under GAAP promulgated
        by rule-setting bodies; and the factors set forth under the heading &#8220;Risk Factors&#8221; in this Form 10-K, in other portions of this Form 10-K, in the Notes to Consolidated Financial Statements, and in other documents filed by Barnwell with the SEC. In
        addition, unpredictable or unknown factors not discussed in this report could also cause actual results to materially and adversely differ from those discussed in the forward-looking statements.</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">4</font></div>
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Unless otherwise indicated, all references to &#8220;dollars&#8221; in this Form 10-K are to United
      States dollars.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0%; font: 10pt 'Times New Roman';"></td>
        <td style="width: 80pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>ITEM 1.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a004_v1"></a>BUSINESS</b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Overview</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell was incorporated in Delaware in 1956 and fiscal 2021
      represented Barnwell&#8217;s 65th year of operations. Barnwell operates in the following three principal business segments:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas Segment </i>- Barnwell engages in oil and natural gas development, production, acquisitions and sales
            in Canada and in the U.S. state of Oklahoma.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Land Investment Segment</i> - Barnwell invests in land interests in Hawaii.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contract Drilling Segment </i>- Barnwell provides well drilling services and water pumping system installation and
            repairs in Hawaii.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Oil and Natural Gas Segment</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Overview</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell acquires and develops crude oil and natural gas assets in the
      province of Alberta, Canada via two corporate entities, Barnwell of Canada and Octavian Oil. Barnwell of Canada is a U.S. incorporated company that has been active in Canada for over 50 years, primarily as a non-operator participating in exploration
      projects operated by others. Octavian Oil is a Canadian company incorporated in 2016 to achieve growth through the acquisition of crude oil reserves and development of those reserves. Additionally, through its wholly-owned subsidiary BOK Drilling,
      LLC (&#8220;BOK&#8221;), established in February 2021, Barnwell is indirectly involved in oil and natural gas investments in Oklahoma.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Strategy</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s oil and natural gas assets are currently managed as two
      categories, Twining and non-operated, based on their differing attributes and strategies.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Twining consists of the Company-owned assets in the Twining field that
      were purchased in 2018. These assets are characterized by being mostly low decline oil wells that the Company operates that we believe have development opportunities. Due to the lower decline rates in the field, Twining requires a lower capital
      investment to maintain production levels. This lower capital requirement along with the fact that the land is largely held indefinitely, means development drilling can be done when higher commodity prices support it. Since Barnwell&#8217;s entry into the
      Twining property in August 2018, the development methods in the area have evolved to include longer horizontal wells with multi-stage sand fracs. Barnwell invested approximately $2,400,000 and drilled its first well of this type in November 2019, and
      it is currently producing 90 Bbls of oil and 81 Boe of natural gas and NGL per day and has made cumulative production of 68,000 Boe since initial production. Barnwell continues to work to improve the operational efficiency of the Twining property
      and, if possible, to expand our land position and level of influence in the Twining area.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The non-operated category consists of the Company&#8217;s Canadian oil and
      natural gas assets not in the Twining area, as well as the new U.S. wells in Oklahoma. The Canadian non-operated assets are located throughout Alberta, Canada, and produce shallow gas and conventional oil from a variety of pools. These non-operated
      Canadian assets have been accumulated over decades of Barnwell activity. Barnwell continues to evaluate opportunities to either divest the legacy Canadian assets, or add to them depending on technical and economic evaluations. The majority of the
      Canadian assets have been up for sale on and off since January 2019, but COVID-19 and the resulting oil price collapse resulted in no reasonable offers being received. However, in April 2021, the Company re-initiated marketing for the sale of these
      assets and sold some properties.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      drilling program with non-operated working interests for seven wells varying from 1.2% to 4.2% and a minor overriding royalty interest, 0.07%, in one well. Additional drilling opportunities in the U.S. are being investigated, however no definitive
      plans have yet been developed.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      64% operated and 56% conventional oil and natural gas liquids and 44% natural gas. Proved oil and natural gas reserves located in the United States were not significant at September 30, 2021, as most of the wells drilled were still undergoing
      evaluation. At September 30, 2020, Barnwell&#8217;s reserves were approximately 48% operated and 57% conventional oil and natural gas liquids and 43% natural gas.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">All acquisitions, operational and developmental activities in the
      Twining area are the responsibility of the President and Chief Operating Officer of Octavian Oil with approvals for major expenditures secured from Barnwell&#8217;s executive management and the Board of Directors.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      of growth are dependent upon oil and natural gas prices and the Company&#8217;s ability to use its current cash, obtain external financing or generate sufficient cash flows to fund the development of our reserves. The industry has experienced a period of
      low oil and natural gas prices that have negatively impacted our past operating results, cash flows and liquidity. Credit and capital markets for oil and natural gas companies have been negatively affected as well, resulting in a decline in sources
      of financing as compared to previous years. Oil and natural gas prices have recovered significantly from the prior year which could improve sources of external finances.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      times due to increased heating demand. Oil prices are also subject to seasonal fluctuations, but to a lesser degree. Oil and natural gas unit sales are based on the quantity produced from the properties by the properties&#8217; operator. Prices received in
      Canada have also been negatively impacted by the lack of export pipeline capacity.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In August 2018, Barnwell completed the acquisition of interests in oil
      and natural gas properties located in the Twining area of Alberta, Canada, from an independent third party. The purchase price per the agreement was $10,362,000, which took into account estimated customary purchase price adjustments to reflect the
      economic activity from the effective date of July 1, 2018 to the closing date. The final determination of the customary adjustments to the purchase price resulted in a $172,000 reduction in the purchase price in the year ended September 30, 2019,
      bringing the final purchase price to $10,190,000. Barnwell also assumed $3,076,000 in asset retirement obligations associated with the Twining acquisition. This acquisition represented a significant step in Barnwell&#8217;s long-term strategy to transform
      its Canadian operations to having almost exclusively conventional light and medium oil assets. This was a strategic purchase by the Company of what is now its largest oil and natural gas property.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">At September 30, 2020, Barnwell reported no proved undeveloped reserves
      related to Twining as oil prices fell significantly in the second quarter of fiscal 2020 making the drilling of proved undeveloped reserves uneconomic and as a result, the Company suspended its development of proved undeveloped reserves in the
      Twining area.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company currently is planning to drill a new 100% working interest,
      operated horizontal well in the Twining area in the first half of fiscal 2022. Additionally, the Company is participating in the drilling of 2.0 gross (0.6 net) non-operated horizontal wells in the area over the same period. The results of these
      wells will help determine the quality and pace of future development.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As stated above, the Company commenced participation in an eight-well
      drilling program in Oklahoma with non-operated working interests in seven wells varying from 1.2% to 4.2% and a minor overriding royalty interest, 0.07%, in one well. One well began production in late May 2021 and the Company&#8217;s share of net
      production, after royalties, from this well was 1,000 barrels of oil, 4,000 MCF of natural gas and 1,000 barrels of natural gas liquids through September 30, 2021. The remaining wells started production in September 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Preparation of Reserve Estimates</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s Canadian reserves are estimated by our independent petroleum
      reserve engineers, InSite, in accordance with generally accepted petroleum engineering and evaluation principles and techniques and rules and regulations of the SEC. All information with respect to the Company&#8217;s Canadian reserves in this Form 10-K is
      derived from the report of InSite. A copy of the report issued by InSite is filed with this Form 10-K as Exhibit 99.1.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The preparation of data used by the independent petroleum reserve
      engineers to compile our oil and natural gas reserve estimates was completed in accordance with various internal control procedures which include verification of data input into reserves evaluation software, reconciliations and reviews of data
      provided to the independent petroleum reserve engineers to ensure completeness, and management review controls, including an independent internal review of the final reserve report for completeness and accuracy.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell has a Reserves Committee consisting of three independent
      directors. The Reserves Committee was established to ensure the independence of the Company&#8217;s petroleum reserve engineers. The Reserves Committee is responsible for reviewing the annual reserve evaluation report prepared by the independent petroleum
      reserve engineering firm and ensuring that the reserves are reported fairly in a manner consistent with applicable standards. The Reserves Committee meets annually to discuss reserve issues and policies and to meet with Company personnel and the
      independent petroleum reserve engineers.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell of Canada&#8217;s President and Chief Operating Officer is a
      professional engineer with over 25 years of relevant experience in the oil and natural gas industry in Canada and is a member of the Association of Professional Engineers and Geoscientists of Alberta.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">7</font></div>
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      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Reserves</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The amounts set forth in the following table, based on InSite&#8217;s
      evaluation of our reserves, summarize our estimated proved reserves of oil (including natural gas liquids) and natural gas as of September 30, 2021, for all properties located in Canada in which Barnwell has an interest. Proved oil and natural gas
      reserves located in the United States are not yet significant and are therefore not included in the table below. All of our oil and natural gas reserves are based on constant dollar price and cost assumptions. 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. No estimates of total proved net oil or natural gas reserves have been filed with, or included in reports to, any federal authority or agency, other
      than the SEC, since October 1, 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
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      <tr style="vertical-align: bottom">
        <td>&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="width: 1%; padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="width: 1%; padding-bottom: 2.5pt">&#160;</td>
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        <td style="width: 1%; padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="width: 1%; padding-bottom: 2.5pt">&#160;</td>
        <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">2,913,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
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        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">4,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font: 10pt 'Times New Roman';">During fiscal 2021, Barnwell&#8217;s total net proved developed reserves of oil and natural gas
      liquids increased by 106,000 Bbls (20%) and total net proved developed reserves of natural gas increased by 603,000 Mcf (26%), for a combined increase of 210,000 Boe (23%). The increase in natural gas reserves were primarily the result of higher oil
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      net reserves at September 30, 2021, by property name, based on information prepared by InSite, as well as net production and net revenues by property name for the year ended September 30, 2021. The reserve data in this table is based on constant
      dollars where reserve estimates are based on sales prices, costs and statutory tax rates in existence at September 30, 2021, the date of the projection.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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      <tr style="vertical-align: bottom">
        <td style="text-align: center; vertical-align: bottom">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom">&#160;</td>
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        <td style="text-align: center; vertical-align: bottom">&#160;</td>
        <td style="text-align: center; vertical-align: bottom">&#160;</td>
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        <td style="text-align: center; vertical-align: bottom">&#160;</td>
        <td style="text-align: center; vertical-align: bottom">&#160;</td>
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        <td style="text-align: center; vertical-align: bottom">&#160;</td>
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        <td style="text-align: center; vertical-align: bottom">&#160;</td>
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        <td style="text-align: center; vertical-align: bottom">&#160;</td>
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        <td style="text-align: right">&#8212;</td>
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        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td style="text-align: right">18</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: right">122</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">36</td>
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        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">122</td>
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        <td style="text-align: right">5</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">19</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">61</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">61</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">7</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">21</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">8</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">44</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">107,000</td>
        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">471</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">471</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">72</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">408</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,516</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">461</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,719</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">118</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">456</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">5,931,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,289,000</td>
        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">52</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">60</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">52</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">60</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">22</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">18</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,116,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">59,000</td>
        <td style="text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">2</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">3</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">1</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">37</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">86,000</td>
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        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
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        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">2,693</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">640</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">2,913</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">169</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">690</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">8,277,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">1,859,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font: 10pt 'Times New Roman';">Net proved reserves that are attributable to existing producing wells are primarily
      determined using decline curve analysis and rate transient analysis, which incorporates the principles of hydrocarbon flow. Net proved reserves attributable to producing wells with limited production history and for undeveloped locations are
      estimated using performance from analogous wells in the surrounding area and geologic data to assess the reservoir continuity. Technologies relied on to establish reasonable certainty of economic producibility include electrical logs, radioactivity
      logs, core analyses, geologic maps and available production data, seismic data and well test data.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">9</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Standardized Measure of Discounted Future Net Cash Flows</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following table sets forth Barnwell&#8217;s &#8220;Estimated Future Net
      Revenues&#8221; from total proved oil, natural gas and natural gas liquids reserves and the present value of Barnwell&#8217;s &#8220;Estimated Future Net Revenues&#8221; (discounted at 10%) as of September 30, 2021. Estimated future net revenues for total proved reserves
      are net of estimated future expenditures of developing and producing the proved reserves, and assume the continuation of existing economic conditions. Net revenues have been calculated using the average first-day-of-the-month price during the
      12-month period ending as of the balance sheet date and current costs, after deducting all royalties, operating costs, future estimated capital expenditures (including abandonment costs), and income taxes. The amounts below include future cash flows
      from reserves that are currently proved undeveloped reserves and do not deduct general and administrative or interest expenses. Proved oil, natural gas and natural gas liquids reserves located in the United States are not significant and are
      therefore not included in the table below.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>Year ending September 30,</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 83%; text-align: left">2022</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">2,440,000</td>
        <td style="width: 2%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left">2023</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,795,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left">2024</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">859,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Thereafter</font></td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(10,047,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Undiscounted future net cash flows, after income taxes</font></td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(4,953,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Standardized measure of discounted future net cash flows</font></td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">2,645,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">*</td>
      </tr>

  </table>
  <p style="margin-top: 0pt; font: 10pt 'Times New Roman'; margin-bottom: 0pt; color: Red;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <!-- Field: Rule-Page -->
  <div align="LEFT">
    <div style="font-size: 1pt; border-top: Black 1pt solid; width: 40%">&#160;</div>
  </div>
  <!-- Field: /Rule-Page -->
  <p style="margin-top: 0pt; font: 10pt 'Times New Roman'; margin-bottom: 0pt; color: Red;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">*&#160;&#160;&#160; This amount does not purport to represent, nor should it be interpreted as, the fair
      value of Barnwell&#8217;s oil and natural gas reserves. An estimate of fair value would also consider, among other items, the value of Barnwell&#8217;s undeveloped land position, the recovery of reserves not presently classified as proved, anticipated future
      changes in oil and natural gas prices (these amounts were based on a natural gas price of $2.23 per Mcf and an oil price of $49.73 per Bbl) and costs, and a discount factor more representative of the time value of money and the risks inherent in
      reserve estimates.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell has included all abandonment, decommissioning and reclamation
      costs and inactive well costs in accordance with best practice recommendations into the Company&#8217;s reserve reports.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas Production</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following table summarizes (a) Barnwell&#8217;s net production for the
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      Production amounts reported are net of royalties. Barnwell&#8217;s net production in fiscal 2021 was derived primarily in Alberta, Canada and to a lesser extent in Oklahoma. All of Barnwell&#8217;s net production in fiscal 2020 and 2019 was derived in Alberta,
      Canada. For a discussion regarding our total annual production volumes, average sales prices, and related production costs, see Item 7, &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations.&#8221;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">10</font></div>
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  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

      <tr style="text-align: center; font: 10pt 'Times New Roman'; vertical-align: bottom;">
        <td style="font: 10pt 'Times New Roman'; padding-bottom: 1pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman'; border-bottom: 1pt solid Black;" colspan="5"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Year ended September 30,</font></td>
      </tr>
      <tr style="text-align: center; font: 10pt 'Times New Roman'; vertical-align: bottom;">
        <td style="width: 62%; font: 10pt 'Times New Roman'; padding-bottom: 1pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 12%; font: 10pt 'Times New Roman'; border-bottom: 1pt solid Black;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>2021</b></font></td>
        <td style="width: 1%; padding-bottom: 1pt">&#160;</td>
        <td style="width: 12%; font: 10pt 'Times New Roman'; border-bottom: 1pt solid Black;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">2020</font></td>
        <td style="width: 1%; padding-bottom: 1pt">&#160;</td>
        <td style="width: 12%; font: 10pt 'Times New Roman'; border-bottom: 1pt solid Black;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">2019</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
        <td style="font: 10pt 'Times New Roman'; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Annual net production:</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
        <td style="font: 10pt 'Times New Roman'; text-align: left; padding-left: 0.25in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Natural gas (Mcf)</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>694,000</b></font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">649,000</font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">628,000</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
        <td style="font: 10pt 'Times New Roman'; text-align: left; padding-left: 0.25in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Oil (Bbls)</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>147,000</b></font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">153,000</font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">123,000</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
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        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">21,000</font></td>
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        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">18,000</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
        <td style="font: 10pt 'Times New Roman'; text-align: left; padding-left: 0.25in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Total (Boe)</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>291,000</b></font></td>
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      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
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        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">1,658,000</font></td>
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        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">1,446,000</font></td>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
        <td style="font: 10pt 'Times New Roman'; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Annual average sales price per unit of production:</font></td>
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        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
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        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$1.15</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
        <td style="font: 10pt 'Times New Roman'; text-align: left; padding-left: 0.25in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Bbl of oil**</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>$51.74</b></font></td>
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        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$33.85</font></td>
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        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$41.84</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
        <td style="font: 10pt 'Times New Roman'; text-align: left; padding-left: 0.25in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Bbl of natural gas liquids**</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>$31.92</b></font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$17.16</font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$25.84</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
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        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$16.79</font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$20.64</font></td>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
        <td style="font: 10pt 'Times New Roman'; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Annual average production cost per Mcfe produced***</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>$3.86</b></font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$2.89</font></td>
        <td style="text-align: right">&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$3.56</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; font: 10pt 'Times New Roman'; margin-bottom: 0pt; color: Red;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <!-- Field: Rule-Page -->
  <div align="LEFT">
    <div style="font-size: 1pt; border-top: Black 1pt solid; width: 40%">&#160;</div>
  </div>
  <!-- Field: /Rule-Page -->
  <p style="margin-top: 0pt; font: 10pt 'Times New Roman'; margin-bottom: 0pt; color: Red;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <table cellspacing="0" cellpadding="0" style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

      <tr style="vertical-align: top; text-align: justify">
        <td style="width: 0.25in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">*</font></td>
        <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Calculated on revenues net of pipeline charges before royalty expense divided by gross production.</font></td>
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  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

      <tr style="vertical-align: top; text-align: justify">
        <td style="width: 0.25in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">**</font></td>
        <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Calculated on revenues before royalty expense divided by gross production.</font></td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">*** Calculated on production costs, excluding natural
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Capital Expenditures and Acquisitions</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell invested $2,217,000 in oil and natural gas properties during
      fiscal 2021, including accrued capital expenditures and acquisitions of oil and natural gas properties and excluding additions and revisions to estimated asset retirement obligations. Barnwell&#8217;s capital expenditures were mostly for the acquisition of
      additional working interests in several wells and equipment in the Twining area and the drilling of wells in Oklahoma that began in the third quarter of fiscal 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      fiscal 2020, including accrued capital expenditures and acquisitions of oil and natural gas properties and excluding additions and revisions to estimated asset retirement obligations. Barnwell&#8217;s capital expenditures were mostly due to the Twining
      horizontal development well drilled in the first quarter of fiscal 2020 which amounted to approximately $2,400,000 and the participation in one gross (0.3 net) development well in the Spirit River area that was drilled in fiscal 2019 and completed in
      fiscal 2020 where approximately $670,000 in capital expenditures was incurred in fiscal 2020. There were no significant amounts paid for oil and natural gas property acquisitions during fiscal 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company participated in the drilling of seven gross (0.20 net)
      non-operated wells in Oklahoma during the year ended September 30, 2021. Capital expenditures incurred by the Company for these Oklahoma wells totaled $1,178,000 for the year ended September 30, 2021. One gross (0.04 net) well was completed, the well
      began flowback production in late May 2021 and the Company&#8217;s share of net production, after royalties, from this well was 1,000 barrels of oil, 4,000 MCF of natural gas and 1,000 barrels of natural gas liquids through September 30, 2021. The
      remaining six gross (0.16 net) wells were all producing in October 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">11</font></div>
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      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company did not drill or participate in the drilling of wells in
      Canada during the year ended September 30, 2021. Drilling opportunities in the Company&#8217;s core Twining area are being investigated for potential investment in the forthcoming months.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2020, Barnwell drilled one gross (1.0 net) horizontal
      development well in the Twining area. This well was successful and started producing in January 2020 and was temporarily shut-in from mid-April 2020 to mid-May 2020 due to decreased oil prices. This well contributed approximately 15,900 barrels of
      net oil production from January through September 2020, representing 10% total net oil production for fiscal 2020. In fiscal 2021, this well contributed approximately 34,200 barrels of net oil production, representing 23% total net oil production.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Producing Wells</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As of September 30, 2021, Barnwell had interests in 139 gross (49.7 net)
      producing wells in Alberta, Canada, of which 82 gross (42.0 net) were oil wells and 57 gross (7.7 net) were natural gas wells.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As of September 30, 2021, Barnwell had interests in seven gross (0.20
      net) producing oil wells in Oklahoma.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following table sets forth the gross and net acres of both developed
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="4">Developed Acreage*</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="4">Undeveloped Acreage*</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="4">Total</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="text-align: left">Location</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">Gross</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">Net</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">Gross</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">Net</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">Gross</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">Net</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 12%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Canada</font></td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 19%; text-align: center">156,980</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 12%; text-align: center">32,400</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 11%; text-align: center">36,230</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 11%; text-align: center">8,730</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 11%; text-align: center">193,210</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 11%; text-align: center">41,130</td>
        <td style="width: 1%; text-align: center">&#160;</td>
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  </table>
  <p style="margin-top: 0pt; font: 10pt 'Times New Roman'; margin-bottom: 0pt; color: Red;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <!-- Field: Rule-Page -->
  <div align="LEFT">
    <div style="font-size: 1pt; border-top: Black 1pt solid; width: 40%">&#160;</div>
  </div>
  <!-- Field: /Rule-Page -->
  <p style="margin-top: 0pt; font: 10pt 'Times New Roman'; margin-bottom: 0pt; color: Red;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">* &#160;&#160;&#160;&#8220;Developed Acreage&#8221; includes the acres covered by leases upon which there are one or
      more producing wells. &#8220;Undeveloped Acreage&#8221; includes acres covered by leases upon which there are no producing wells and which are maintained by the payment of delay rentals or the commencement of drilling thereon.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Eighty-five percent of Barnwell&#8217;s undeveloped acreage is not subject to
      expiration at September 30, 2021. Fifteen percent of Barnwell&#8217;s leasehold interests in undeveloped acreage is subject to expiration and expire over the next five fiscal years, if not developed, as follows: 6% expire during fiscal 2022; 7% expire
      during fiscal 2023; no expirations during fiscal 2024 and fiscal 2025; and 2% expire during fiscal 2026. There can be no assurance that Barnwell will be successful in renewing its leasehold interests in the event of expiration.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Much of the undeveloped acreage is at non-operated properties over which
      we do not have control, and the value of such acreage is not estimated to be significant at current commodity prices. Barnwell&#8217;s undeveloped acreage includes a significant concentration in the Twining area (2,164 net acres).</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Marketing of Oil and Natural Gas</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell sells its oil, natural gas, and natural gas liquids production,
      including under short-term contracts between itself and two main oil marketers, one natural gas purchaser, and one natural gas liquids marketer. The prices received are freely negotiated between buyers and sellers and are determined from transparent
      posted prices adjusted for quality and transportation differentials. In fiscal 2021, over 80% of Barnwell&#8217;s oil and natural gas revenues were from products sold at spot prices. Barnwell does not use derivative instruments to manage price risk.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">12</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2021 and 2020, Barnwell took most of its oil, natural gas
      liquids and natural gas &#8220;in kind&#8221; where Barnwell markets the products instead of having the operator of a producing property market the products on Barnwell&#8217;s behalf. We sell oil, natural gas and natural gas liquids to a variety of energy marketing
      companies. Because our products are commodities for which there are numerous marketers, we are not dependent upon one purchaser or a small group of purchasers. Accordingly, the loss of any single purchaser would not materially affect our revenues.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Governmental Regulation</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The jurisdictions in which the oil and natural gas properties of
      Barnwell are located have regulatory provisions relating to permits for the drilling of wells, the spacing of wells, the prevention of oil and natural gas waste, allowable rates of production, environmental protection, and other matters. The amount
      of oil and natural gas produced is subject to control by regulatory agencies in each province. The province of Alberta and the Government of Canada also monitor the volume of natural gas that may be removed from the province and the conditions of
      removal; currently all our natural gas is sold within Alberta.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">All of Barnwell&#8217;s Canadian gross revenues were derived from properties
      located within Alberta, which charges oil and natural gas producers a royalty for production within the province. Provincial royalties are calculated as a percentage of revenue and vary depending on production volumes, selling prices and the date of
      discovery. Barnwell also pays gross overriding royalties and leasehold royalties on a portion of its oil and natural gas sales to parties other than the province of Alberta.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In January 2016, the Alberta Royalty Panel recommended a new modernized
      Alberta royalty framework which applies to wells drilled on or after January 1, 2017. The previous royalty framework will continue to apply to wells drilled prior to January 1, 2017 for a period of ten years, after which they will fall under the
      current royalty framework. Under the current royalty framework the same royalty calculation applies to both oil and natural gas wells, whereas the previous royalty framework had different royalties applicable to each category, and royalties are
      determined on a revenue minus cost basis where producers pay a flat royalty rate of 5% of gross revenues until a well reaches payout after which an increased post-payout royalty applies. Post payout royalties vary with commodity prices and are
      adjusted down for cost increases as wells age.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2021 and 2020, 45% and 44%, respectively, of royalties related
      to Alberta government charges, and 55% and 56%, respectively, of royalties related to freehold, override and other charges which are not directly affected by the Alberta royalty framework.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2021, the weighted-average royalty rate paid on all of
      Barnwell&#8217;s natural gas was 8%, and the weighted-average royalty rate paid on oil was 12%.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s oil and natural gas segment is currently subject to the
      provisions of the AER&#8217;s LLR program. Under the LLR program the AER calculates a LMR for a company based on the ratio of the company&#8217;s deemed assets over its deemed liabilities relating to wells and facilities for which the company is the licensed
      operator. The LMR assessment is designed to assess a company&#8217;s ability to address its suspension, abandonment, remediation, and reclamation liabilities. The value of the deemed assets is based on each well&#8217;s most recent twelve months of production
      and a rolling three-year average industry netback as determined by the AER annually. The AER has not recalculated the three-year average industry netback since March 2015 making the current value a premium to what most producers have been realizing.
      A recalculation of the value using current industry netback values would likely have a negative impact on our LMR. Companies with an LMR less than 1.0 are required to deposit funds with the AER to cover future deemed liabilities. At September 30,
      2021, the Company had sufficient deemed asset value that no security deposit was due. The current liability framework is under revision by the AER. A percentage-based retirement framework is expected to be introduced, but further details are unknown
      at this time.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In September 2019, the AER issued an abandonment/closure order for all
      wells and facilities in the Manyberries area which had been largely operated by LGX, an operating company that went into receivership in 2016. The estimated asset retirement obligation for the Company&#8217;s interest in the wells and facilities in the
      Manyberries area is included in &#8220;Asset retirement obligation&#8221; in the Consolidated Balance Sheets. Many 100% LGX-owned wells are to be reclaimed by the OWA. However, as next largest interest holder in 82 wells and 7 facilities formerly operated by
      LGX, averaging 11%, the Company is required to take care and custody of those properties and to coordinate their closure.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In November 2019, in response to the AER order, the Company submitted
      its proposed plan to abandon the Manyberries wells and facilities in an orderly fashion over a ten-year period. This area has unique access issues as a result of an Emergency Protection Order to protect the Sage Grouse under the Canadian Government&#8217;s
      Species at Risk Act. Access is limited to a window of mid-September to the end of November each year. The plan that the Company submitted began in October 2019 with field inspections, securing wells, and equipment inventory and the plan included
      further field activity beginning in the fall of 2020, our fiscal 2021 first quarter, which has been initiated and initially involves removal and salvage of the surface equipment; these costs are estimated to be minimal due in part to the salvage
      value of the equipment. Beyond fiscal 2021, the Company proposed and intends to perform seven to ten well abandonments per year over an estimated ten-year period as well as abandon the facilities in that time period.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Recently, the OWA created a WIP program for specific areas where there
      are a significant number of orphaned wells to abandon. The OWA has the ability and expertise to abandon wells using its internal resources and network of service providers resulting in efficiencies that companies such as Barnwell, would not be able
      to obtain on its own. Under the WIP program, the Company would be required to provide payment for only Barnwell&#8217;s working interest share, however, all WIP&#8217;s would have to participate in the program for the OWA to begin its work. In March 2021, the
      Company was notified by the OWA that Barnwell&#8217;s Manyberries wells were confirmed to be in the WIP program.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Under the new agreement with the OWA, the Company is required to pay the
      abandonment and reclamation costs in advance through a cash deposit. The total cash deposit amount was calculated to be approximately $1,525,000 and the Company paid $888,000 of the total deposit in July and August 2021 and will need to pay the
      remaining balance of $637,000 by August 2022. The Company revised its Manyberries ARO liability based on the OWA&#8217;s revised abandonment and reclamation estimates, which resulted in an increase of approximately $213,000 in the current year. The
      increase in the ARO liability was a result of higher reclamation and remediation costs than anticipated, partially offset by lower abandonment estimates. Based on a review of the details of the cash deposit calculation provided by the OWA, which
      includes amounts added for possible contingencies, the Company believes the required cash deposit amount by the OWA is higher than the actual costs of the asset retirement obligation for the Manyberries wells and that any excess of the deposit over
      actual asset retirement costs for the first phase of the work would be credited toward the second phase of the work. A remaining excess deposit, if any, would ultimately be refunded to the Company upon completion of all of the work.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Over the past five years, the Company has worked to reduce its
      abandonment and reclamation obligations associated with its oil and natural gas segment, both by divesting low-productivity assets and actively closing wells and sites. Sixteen Barnwell operated sites have been certified as fully reclaimed or exempt
      since 2016. To aid in this regard, and as a stimulus response to the COVID-19 pandemic, the Canadian Federal Government created and funded the Alberta-administered Site Rehabilitation Program (&#8220;SRP&#8221;) in spring 2020. The SRP has been designed to
      reduce oil and gas industry liabilities by funding vendors who perform closure work. In partnership with its vendors, Barnwell-operated sites have received $303,000 in net funding to date, to be directed to ARO reduction activities. Barnwell has
      further benefited from grants allocated to its non-operated property partners amounting to $114,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company began participating in non-operated oil and natural gas
      investments in Oklahoma in fiscal 2021, however such operations were not significant as they were only in the initial stages of development and production.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Competition</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell competes in the sale of oil and natural gas on the basis of
      price and on the ability to deliver products. The oil and natural gas industry is intensely competitive in all phases, including the acquisition and development of new production and reserves and the acquisition of equipment and labor necessary to
      conduct drilling activities. The competition comes from numerous major oil companies as well as numerous other independent operators. There is also competition between the oil and natural gas industry and other industries in supplying the energy and
      fuel requirements of industrial, commercial and individual consumers. Barnwell is a minor participant in the industry and competes in its oil and natural gas activities with many other companies having far greater financial, technical and other
      resources.</font></p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Land Investment Segment</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Overview</i></font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell owns a 77.6% interest in Kaupulehu Developments, a Hawaii
      general partnership (&#8220;Kaupulehu Developments&#8221;) that has the right to receive payments from KD I and KD II resulting from the sale of lots and/or residential units by KD I and KD II within the approximately 870 acres of the Kaupulehu Lot 4A area in
      two increments (&#8220;Increment I&#8221; and &#8220;Increment II&#8221;), located approximately six miles north of the Kona International Airport in the North Kona District of the island of Hawaii. Kaupulehu Developments also holds an interest in approximately 1,000 acres
      of vacant leasehold land zoned conservation located adjacent to Lot 4A under a lease that terminates in December 2025, which currently has no development potential without both a development agreement with the lessor and zoning reclassification.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell, through two limited liability limited partnerships, KD Kona
      and KKM Makai (&#8220;KKM&#8221;), holds a non-controlling ownership interest in the Kukio Resort Land Development Partnerships comprised of KD Kukio Resorts, KD Maniniowali, and KDK. The Kukio Resort Land Development Partnerships own certain real estate and
      development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast of the island of Hawaii, as well as Kukio Resort&#8217;s real estate sales office operations. KDK holds
      interests in KD I and KD II. KD I is the developer of Increment I, and KD II is the developer of Increment II. Barnwell&#8217;s ownership interests in the Kukio Resort Land Development Partnerships are accounted for using the equity method of accounting.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Operations</i></font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In the 1980s, Kaupulehu Developments obtained the state and county
      zoning changes necessary to permit development of the Four Seasons Resort Hualalai at Historic Ka`upulehu and Hualalai Golf Club, which opened in 1996, a second golf course, and single-family and multi-family residential units. These projects were
      developed by an unaffiliated entity on leasehold land acquired from Kaupulehu Developments.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In the 1990s and 2000s, Kaupulehu Developments obtained the state and
      county zoning changes necessary to permit development of single-family and multi-family residential units, a golf course and a limited commercial area on approximately 870 leasehold acres, known as Lot 4A, zoned for resort/ residential development,
      located adjacent to and north of the Four Seasons Resort Hualalai at Historic Ka`upulehu. In 2004 and 2006, Kaupulehu Developments sold its leasehold interest in Kaupulehu Lot 4A to KD I&#8217;s and KD II&#8217;s predecessors in interest, which was prior to
      Barnwell&#8217;s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort Land Development Partnerships.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Increment I is an area of 80 single-family lots, 71 of which were sold
      from 2006 to 2021 and of which nine lots remain to be sold, and a beach club on the portion of the property bordering the Pacific Ocean. The purchasers of the 80 single-family lots will have the right to apply for membership in the Kuki`o Golf and
      Beach Club, which is located adjacent to and south of the Four Seasons Resort Hualalai at Historic Ka`upulehu. Increment II is the remaining portion of the approximately 870-acre property and is zoned for single-family and multi-family residential
      units and a golf course and clubhouse. Two residential lots of approximately two to three acres in size fronting the ocean were developed within Increment II and sold by KD II, and the remaining acreage within Increment II is not yet under
      development. It is uncertain when or if KD II will develop the other areas of Increment II, and there is no assurance with regards to the amounts of future sales from Increments I and II. The remaining 420 developable acres at Increment II are
      entitled for up to 350 homesites. No definitive development plans have been made by the developer of Increment II as of the date of this report.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Kaupulehu Developments is entitled to receive payments from KD I based
      on the following percentages of the gross receipts from KD I&#8217;s sales of single-family residential lots in Increment I: 10% of such aggregate gross proceeds greater than $100,000,000 up to $300,000,000; and 14% of such aggregate gross proceeds in
      excess of $300,000,000. In fiscal 2021, eight single-family lots in Increment I were sold bringing the total amount of gross proceeds from single-family lot sales through September 30, 2021 to $237,038,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In March 2019, KD II admitted a new development partner, Replay
      Kaupulehu Development, LLC (&#8220;Replay&#8221;), a party unrelated to Barnwell, in an effort to move forward with development of the remainder of Increment II at Kaupulehu. KDK and Replay hold ownership interests of 55% and 45%, respectively, of KD II and
      Barnwell has a 10.8% indirect non-controlling ownership interest in KD II through KDK, which is accounted for using the equity method of accounting. Barnwell continues to have an indirect 19.6% non-controlling ownership interest in KD Kukio Resorts,
      KD Maniniowali, and KD I.</font></p>
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Under the terms of the Increment II agreement with KD II, Kaupulehu
      Developments is entitled to 15% of the distributions of KD II, the cost of which is to be solely borne by KDK out of its 55% ownership interest in KD II, plus a priority payout of 10% of KDK&#8217;s cumulative net profits derived from Increment II sales
      subsequent to Phase 2A, up to a maximum of $3,000,000 as to the priority payout. Such interests are limited to distributions or net profits interests and Barnwell does not have any partnership interests in KD II or KDK through its interest in
      Kaupulehu Developments. The arrangement also gives Barnwell rights to three single-family residential lots in Phase 2A of Increment II, and four single-family residential lots in phases subsequent to Phase 2A when such lots are developed by KD II,
      all at no cost to Barnwell. Barnwell is committed to commence construction of improvements within 90 days of the transfer of the four lots in the phases subsequent to Phase 2A as a condition of the transfer of such lots. Also, in addition to
      Barnwell&#8217;s existing obligations to pay professional fees to certain parties based on percentages of its gross receipts, Kaupulehu Developments is also obligated to pay an amount equal to 0.72% and 0.2% of the cumulative net profits of KD II to KD
      Development and a pool of various individuals, respectively, all of whom are partners of KKM and are unrelated to Barnwell, in compensation for the agreement of these parties to admit the new development partner for Increment II. Such compensation
      will be reflected as the obligation becomes probable and the amount of the obligation can be reasonably estimated.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2021, the Kukio Resort Land Development Partnerships sold
      eight lots in Increment I and as a result of the lot sales, made cash distributions to its partners of which Barnwell received $6,011,000, after distributing $683,000 to minority interests. Of the $6,011,000 net cash distribution received from the
      Kukio Resort Land Development Partnerships, $459,000 represented a payment of the preferred return from KKM and was recorded as an additional equity pickup in the &#8220;Equity in income of affiliates&#8221; line item on the accompanying Consolidated Statement
      of Operations during the year ended September 30, 2021. See Note 4 for further discussion on the preferred return from KKM.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Competition</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s land investment segment is subject to intense competition in
      all phases of its operations including the acquisition of new properties, the securing of approvals necessary for land rezoning, and the search for potential buyers of property interests presently owned. The competition comes from numerous
      independent land development companies and other industries involved in land investment activities. The principal factors affecting competition are the location of the project and pricing. Barnwell is a minor participant in the land development
      industry and competes in its land investment activities with many other entities having far greater financial and other resources.</font></p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Contract Drilling Segment</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Overview</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s wholly-owned subsidiary, Water Resources, drills water and
      water monitoring wells of varying depths in Hawaii, installs and repairs water pumping systems, and is the distributor for Trillium Flow Technologies, previously known as Floway, pumps and equipment in the state of Hawaii.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Operations</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Water Resources owns and operates five water well drilling rigs, two
      pump rigs and other ancillary drilling and pump equipment. Additionally, Water Resources temporarily rents a storage facility in Honolulu, Hawaii, and leases a one acre maintenance and storage facility with 2,800 square feet of interior space in
      Kawaihae, Hawaii, and a one-half acre equipment storage yard in Waimea, Hawaii. Water Resources also maintains an inventory of uninstalled materials for jobs in progress and an inventory of drilling materials and pump supplies.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Water Resources currently operates in Hawaii and is not subject to
      seasonal fluctuations. The demand for Water Resources&#8217; services is primarily dependent upon land development activities in Hawaii. Water Resources markets its services to land developers and government agencies, and identifies potential contracts
      through public notices, its officers&#8217; involvement in the community and referrals. Contracts are usually fixed price per lineal foot drilled and are negotiated with private entities or obtained through competitive bidding with private entities or
      local, state and federal agencies. Contract revenues are not dependent upon the discovery of water or other similar targets, and contracts are not subject to renegotiation of profits or termination at the election of the governmental entities
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2021, Water Resources started one well drilling and five pump
      installation and repair contracts and completed six pump and repair contracts. No well drilling contracts were completed in fiscal 2021. Of the six completed pump and repair contracts, one was started in fiscal 2019, two were started in fiscal 2020
      and three were started in the current year. Fifty-six percent of well drilling and pump installation and repair jobs, representing 48% of total contract drilling revenues in fiscal 2021, have been pursuant to government contracts.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The approximate dollar amount of Water Resources&#8217; backlog of firm well
      drilling and pump installation and repair contracts at December 1, 2021 and 2020 was as follows:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: bottom">
        <td>&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="width: 74%; text-align: left; padding-left: 2.6pt">Well drilling</td>
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        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 10%; font-weight: bold; text-align: right">8,000,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 10%; text-align: right">4,700,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,500,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">2,500,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">9,500,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">7,200,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Of the contracts in backlog at December 1, 2021, $5,900,000 is expected
      to be recognized in fiscal 2022, $2,436,000 pertains to a government contract that expires in 2022 and may not be extended, with the remainder to be recognized in the following fiscal year.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Competition</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Water Resources competes with other drilling contractors in Hawaii, some
      of which use drill rigs similar to Water Resources&#8217;. These competitors are also capable of installing and repairing vertical turbine and submersible water pumping systems in Hawaii. These contractors compete actively with Water Resources for
      government and private contracts. Pricing is Water Resources&#8217; major method of competition; reliability of service is also a significant factor.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Competitive pressures are expected to remain high, thus there is no
      assurance that the quantity or values of available or awarded jobs which occurred in fiscal 2021 will continue.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Financial Information About Industry Segments and Geographic Areas</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Note 12 in the &#8220;Notes to Consolidated Financial Statements&#8221; in Item 8
      contains information on our segments and geographic areas.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Employees</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">At December 1, 2021, Barnwell employed 36 individuals; 35 on a full time
      basis and 1 on a part time basis.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Environmental Costs</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell is subject to extensive environmental laws and regulations.
      U.S. Federal and state and Canadian Federal and provincial governmental agencies issue rules and regulations and enforce laws to protect the environment which are often difficult and costly to comply with and which carry substantial penalties for
      failure to comply, particularly in regard to the discharge of materials into the environment. These laws, which are constantly changing, regulate the discharge of materials into the environment and maintenance of surface conditions and may require
      Barnwell to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites where it has a working interest.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">For further information on environmental remediation, see the
      Contingencies section included in Item 7, &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations&#8221; and the notes to our consolidated financial statements included in Item 8, &#8220;Financial Statements and Supplementary
      Data.&#8221;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Available Information</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We are required to file annual, quarterly and current reports and other
      information with the SEC. These filings are not deemed to be incorporated by reference in this report. You may read and copy any document filed by us at the Public Reference Room of the SEC, 100 F Street, N.E., Washington, D.C. 20549, on official
      business days during the hours of 10 a.m. to 3 p.m. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Our filings with the SEC are also available to the public through the SEC&#8217;s website at
      www.sec.gov. Furthermore, we maintain an internet site at www.brninc.com. We make available on our internet website free of charge our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to
      those reports as soon as practicable after we electronically file such reports with, or furnish them to, the SEC. The contents of these websites are not incorporated into this filing. Furthermore, the Company&#8217;s references to URLs for these websites
      are intended to be textual references only.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">19</font></div>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a005_v1"></a>ITEM 1A.&#160;&#160;&#160;&#160;&#160;&#160; RISK FACTORS</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The business of Barnwell and its subsidiaries face numerous risks,
      including those set forth below or those described elsewhere in this Form 10-K or in Barnwell&#8217;s other filings with the SEC. The risks described below are not the only risks that Barnwell faces. If any of the following risk factors should occur, our
      profitability, financial condition or liquidity could be materially negatively impacted.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Entity-Wide Risks</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our business operations and financial condition have been and may continue to be
      materially and adversely affected by the outbreak of a novel strain of coronavirus, which resulted in the global health pandemic referred to as COVID-19.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In March 2020, the World Health Organization declared the COVID-19
      outbreak a global pandemic and the United States and Canadian governments declared the virus a national emergency shortly thereafter. The ongoing global health crisis (including resurgences) resulting from the pandemic have, and continue to, disrupt
      the normal operations of many businesses, including the temporary closure or scale-back of business operations and/or the imposition of either quarantine or remote work or meeting requirements for employees, either by government order or on a
      voluntary basis. While the outbreak recently appeared to be trending downward, particularly as vaccination rates increased, new variants of COVID-19 continue emerging, including the highly transmissible Delta variant and the newly-discovered Omicron
      variant (currently a &#8220;variant of concern&#8221;), spreading throughout the U.S. and globally and causing significant uncertainty. The global economy, our markets and our business have been, and may continue to be, materially and adversely affected by
      COVID-19.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The COVID-19 outbreak materially and adversely affected our business
      operations and financial condition as a result of the deteriorating market outlook, the global economic recession and weakened liquidity. Although demand for oil and oil prices has recovered from the lows of March through May of the prior year,
      uncertainty regarding future oil prices has impacted and continues to impact the Company&#8217;s financial condition and outlook. While the Company&#8217;s contract drilling segment remained operational throughout fiscal 2020 and 2021 and continues to work, the
      continuing potential impact of COVID-19 on the health of our contract drilling segment&#8217;s crews and ability or desire for customers to continue such work is uncertain, and any discontinuation of contracts currently in backlog would result in a
      material adverse impact to the Company&#8217;s financial condition and outlook. Though availability of vaccines and reopening of state and local economies has improved the outlook for recovery from COVID-19&#8217;s impacts, the impact of the Delta or Omicron
      variant or other new, more contagious or lethal variants that may emerge, the effectiveness of COVID-19 vaccines against the Delta or Omicron variant or such other variants and the related responses by governments, including reinstated
      government-imposed lockdowns or other measures, cannot be predicted at this time. Both the health and economic aspects of the COVID-19 pandemic remain highly fluid and the future course of each is uncertain. We cannot foresee whether the outbreak of
      COVID-19 will be effectively contained on a sustained basis, nor can we predict the severity and duration of its impact. If the outbreak of COVID-19 is not effectively and timely controlled on a sustained basis going forward, our business operations
      and financial condition may be materially and adversely affected by factors that we cannot foresee. Any of these factors and other factors beyond our control could have an adverse effect on the overall business environment, cause uncertainties in the
      regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">20</font></div>
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      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We are subject to the Continued Listing Criteria of the NYSE American and our failure
      to maintain continued compliance with the listing requirements of the NYSE American exchange could result in the delisting of our common stock.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our common stock is listed on the NYSE American. In order to maintain
      this listing, we must maintain certain share prices, financial and share distribution targets, including maintaining a minimum amount of stockholders&#8217; equity and a minimum number of public stockholders. In addition to these objective standards, the
      NYSE American may delist the securities of any issuer if, in its opinion, the issuer&#8217;s financial condition and/or operating results appear unsatisfactory; if it appears that the extent of public distribution or the aggregate market value of the
      security has become so reduced as to make continued listing on the NYSE American inadvisable; if the issuer sells or disposes of principal operating assets or ceases to be an operating company; if an issuer fails to comply with the NYSE American&#8217;s
      listing requirements; if an issuer&#8217;s common stock sells at what the NYSE American considers a &#8220;low selling price&#8221; (generally trading below $0.20 per share for an extended period of time); or if any other event occurs or any condition exists which
      makes continued listing on the NYSE American, in its opinion, inadvisable.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      that the Company was not in compliance with Section 1003(a)(i) and Section 1003(a)(ii) of the NYSE American Company Guide (the &#8220;Guide&#8221;), which respectively require an issuer to have (i) stockholders&#8217; equity of $2.0 million or more if such issuer
      reported losses from continuing operations and/or net losses in two of its three most recent fiscal years and (ii) stockholders&#8217; equity of $4.0 million or more if such issuer reported losses from continuing operations and/or net losses in three of
      its four most recent fiscal years, since we reported stockholders&#8217; equity of $1.2 million as of September 30, 2019 and net losses in three of the last four most recent fiscal years then ended, and that the Company&#8217;s common stock could be at risk of
      being delisted.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In accordance with the NYSE American&#8217;s policies and procedures, we
      subsequently submitted a plan (the &#8220;Plan&#8221;) to the NYSE American detailing the steps we planned to take to raise our stockholders&#8217; equity above $4.0 million and regain compliance with Section 1003(a)(i) and Section 1003(a)(ii) of the Guide. On April
      2, 2020, the NYSE American notified the Company that it accepted the Plan and granted the Company an extension for its continued listing until July 13, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On July 13, 2021, the Company filed a Form 8-K report with the
      Securities and Exchange Commission announcing that the Company&#8217;s pro forma stockholders&#8217; equity (unaudited) as of July 13, 2021 was projected to be above the $4.0 million required to comply with Section 1003(a)(i) and Section 1003(a)(ii) of the
      Guide. Accordingly, in a letter dated July 14, 2021, the NYSE American determined the Company had resolved the continued listing deficiency with respect to Section 1003(a)(i) and Section 1003(a)(ii) of the Guide and notified the Company that it had
      successfully regained compliance with the NYSE American continued listing standards.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Accordingly, the Company continues to be subject to the normal continued
      listing criteria of the NYSE American. However, if the company, within 12 months of July 14, 2021, is again determined to be below any of the continued listing standards, the NYSE American staff will examine the relationship between the two incidents
      of falling below continued listing standards and re-evaluate the Company&#8217;s method of financial recovery from the first incident. It will then take appropriate action, which, depending upon the circumstances, may include truncating the procedures
      described above or immediately initiating delisting proceedings. If the NYSE American delists our common stock, investors may face material adverse consequences, including, but not limited to, a lack of a trading market for our common stock, reduced
      liquidity, and an inability for us to obtain financing to fund our operations.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Stockholders may be diluted significantly through our efforts to obtain financing and
      satisfy obligations through the issuance of securities.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our Board of Directors has authority, without action or vote of the
      stockholders, subject to the requirements of the NYSE American (which generally require stockholder approval for any transactions which would result in the issuance of more than 20% of our then outstanding shares of common stock or voting rights
      representing over 20% of our then outstanding shares of stock, subject to certain exceptions, including sales in public offerings and/or sales which are undertaken at or above the greater of the book value and/or market value of the issuer&#8217;s common
      stock on the date the transaction is agreed to be completed), to issue all or part of the authorized but unissued shares of common stock or warrants to purchase such shares of common stock. In addition, we may attempt to raise capital by selling
      shares of our common stock, possibly at a discount to market in the future. These actions would result in dilution of the ownership interests of existing stockholders and may further dilute common stock book value, and that dilution may be material.
      A related effect of such issuances may enhance existing large stockholders&#8217; influence on the Company, including that of Alexander Kinzler, our Chief Executive Officer.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A small number of stockholders, including our CEO, own a significant amount of our
      common stock and have influence over our business regardless of the opposition of other stockholders.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As of September 30, 2021, the CEO, who is a member of the Board of
      Directors, and two other stockholders hold approximately 39% of our outstanding common stock. The interests of one or more of these stockholders may not always coincide with the interests of other stockholders. These stockholders have significant
      influence over all matters submitted to our stockholders, including the election of our directors, and could accelerate, delay, deter or prevent a change of control of the Company. The significant stockholders who are also members of the Board of
      Directors could significantly affect our business, policies and affairs.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our operations are subject to currency rate fluctuations.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our operations are subject to fluctuations in foreign currency exchange
      rates between the U.S. dollar and the Canadian dollar. Our financial statements, presented in U.S. dollars, may be affected by foreign currency fluctuations through both translation risk and transaction risk. Volatility in exchange rates may
      adversely affect our results of operations, particularly through the weakening of the U.S. dollar relative to the Canadian dollar which may affect the relative prices at which we sell our oil and natural gas and may affect the cost of certain items
      required in our operations. To date, we have not entered into foreign currency hedging transactions to control or minimize these risks.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Adverse changes in actuarial assumptions used to calculate retirement plan costs due to
      economic or other factors, or lower returns on plan assets could adversely affect Barnwell&#8217;s results and financial condition.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Retirement plan cash funding obligations and plan expenses and
      obligations are subject to a high degree of uncertainty and could increase in future years depending on numerous factors, including the performance of the financial markets, specifically the equity markets, levels of interest rates, and the cost of
      health care insurance premiums.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  </div>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The price of our common stock has been volatile and could continue to fluctuate substantially.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The market price of our common stock has been volatile and could
      fluctuate based on a variety of factors, including:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">fluctuations in commodity prices;</font></td>
      </tr>

  </table>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">variations in results of operations;</font></td>
      </tr>

  </table>
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        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">announcements by us and our competitors;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">legislative or regulatory changes;</font></td>
      </tr>

  </table>
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  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">general trends in the industry;</font></td>
      </tr>

  </table>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">general market conditions;</font></td>
      </tr>

  </table>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">litigation; and</font></td>
      </tr>

  </table>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">other events applicable to our industries.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Failure to retain key personnel could hurt our operations.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We require highly skilled and experienced personnel to operate our
      business. In addition to competing in highly competitive industries, we compete in a highly competitive labor market. Our business could be adversely affected by an inability to retain personnel or upward pressure on wages as a result of the highly
      competitive labor market. Further, there are significant personal liability risks to Barnwell of Canada&#8217;s individual officers and directors related to well clean-up costs that may affect our ability to attract or retain the necessary people.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We are a smaller reporting company and benefit from certain reduced governance and
      disclosure requirements, including that our independent registered public accounting firm is not required to attest to the effectiveness of our internal control over financial reporting. We cannot be certain if the omission of reduced disclosure
      requirements applicable to smaller reporting companies will make our common stock less attractive to investors.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Currently, we are a &#8220;smaller reporting company,&#8221; meaning that our
      outstanding common stock held by nonaffiliates had a value of less than $250 million at the end of our most recently completed second fiscal quarter. As a smaller reporting company, we are not required to comply with the auditor attestation
      requirements of Section 404 of the Sarbanes-Oxley Act, meaning our auditors are not required to attest to the effectiveness of the Company&#8217;s internal control over financial reporting. As a result, investors and others may be less comfortable with the
      effectiveness of the Company&#8217;s internal controls and the risk that material weaknesses or other deficiencies in internal controls go undetected may increase. In addition, as a smaller reporting company, we take advantage of our ability to provide
      certain other less comprehensive disclosures in our SEC filings, including, among other things, providing only two years of audited financial statements in annual reports and simplified executive compensation disclosures. Consequently, it may be more
      challenging for investors to analyze our results of operations and financial prospects, as the information we provide to stockholders may be different from what one might receive from other public companies in which one hold shares. As a smaller
      reporting company, we are not required to provide this information.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">23</font></div>
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Risks Related to Oil and Natural Gas Segment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Acquisitions or discoveries of additional reserves are needed to increase our oil and natural gas segment
      operating results and cash flow.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In August 2018, Barnwell made a significant reinvestment into its oil
      and natural gas segment with the acquisition of the Twining property in Alberta, Canada. The Company believes there are potential undeveloped reserves for which significant future capital expenditures will be needed to convert those potential
      undeveloped reserves into developed reserves. If future circumstances are such that we are not able to make the capital expenditures necessary to convert potential undeveloped reserves to developed reserves, we will not replace the amount of reserves
      produced and sold and our reserves and oil and natural gas segment operating results and cash flows will decline accordingly, and we may be forced to sell some of our oil and natural gas segment assets under untimely or unfavorable terms. Any such
      curtailment or sale could have a material adverse effect on our business, financial condition and results of operations.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Future oil and natural gas operating results and cash flow are highly
      dependent upon our level of success in acquiring or finding additional reserves on an economic basis. We cannot guarantee that we will be successful in developing or acquiring additional reserves and our current financial resources may be
      insufficient to make such investments. Furthermore, if oil or natural gas prices increase, our cost for additional reserves could also increase.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We may not realize an adequate return on oil and natural gas investments.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Drilling for oil and natural gas involves numerous risks, including the
      risk that we will not encounter commercially productive oil or natural gas reservoirs. The wells we drill or participate in may not be productive, and we may not recover all or any portion of our investment in those wells. If future oil and natural
      gas segment acquisition and development activities are not successful it could have an adverse effect on our future results of operations and financial condition.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Oil and natural gas prices are highly volatile and further declines, or extended low prices will
      significantly affect our financial condition and results of operations.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Much of our revenues and cash flow are greatly dependent upon prevailing
      prices for oil and natural gas. Lower oil and natural gas prices not only decrease our revenues on a per unit basis, but also reduce the amount of oil and natural gas we can produce economically, if any. Prices that do not produce sufficient
      operating margins will have a material adverse effect on our operations, financial condition, operating cash flows, borrowing ability, reserves, and the amount of capital that we are able to allocate for the acquisition and development of oil and
      natural gas reserves.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Various factors beyond our control affect prices of oil and natural gas
      including, but not limited to, changes in supply and demand, market uncertainty, weather, worldwide political instability, foreign supply of oil and natural gas, the level of consumer product demand, government regulations and taxes, the price and
      availability of alternative fuels and the overall economic environment. Energy prices are also subject to other political and regulatory actions outside our control, which may include changes in the policies of the Organization of the Petroleum
      Exporting Countries or other developments involving or affecting oil-producing countries, or actions or reactions of the government of the United States in anticipation of or in response to such developments.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The inability of one or more of our working interest partners to meet their obligations may adversely affect
      our financial results.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">For our operated properties, we pay expenses and bill our non-operating
      partners for their respective shares of costs. Some of our non-operating partners may experience liquidity problems and may not be able to meet their financial obligations. Nonperformance by a non-operating partner could result in significant
      financial losses.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Liquidity problems encountered by our working interest partners or the
      third party operators of our non-operated properties may also result in significant financial losses as the other working interest partners or third party operators may be unwilling or unable to pay their share of the costs of projects as they become
      due. In the event a third party operator of a non-operated property becomes insolvent, it may result in increased operating expenses and cash required for abandonment liabilities if the Company is required to take over operatorship. Barnwell holds an
      11% working interest, the largest working interest other than that held by the operator, in a property with approximately 82 wells and 7 facilities where the operator is in receivership.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We may incur material costs to comply with or as a result of health, safety, and environmental laws and
      regulations.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The oil and natural gas industry is subject to extensive environmental
      regulation pursuant to local, provincial and federal legislation. A violation of that legislation may result in the imposition of fines or the issuance of &#8220;clean up&#8221; orders. Legislation regulating the oil and natural gas industry may be changed to
      impose higher standards and potentially more costly obligations. Although we have recorded a provision in our financial statements relating to our estimated future environmental and reclamation obligations that we believe is reasonable, we cannot
      guarantee that we will be able to satisfy our actual future environmental and reclamation obligations.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s oil and natural gas segment is subject to the provisions of
      the AER&#8217;s LLR program. Under the LLR program the AER calculates a LMR for a company based on the ratio of the company&#8217;s deemed assets over its deemed liabilities relating to wells and facilities for which the company is the licensed operator and
      imposes a security deposit on operators whose estimated liabilities exceed their deemed asset value. At September 30, 2021, the Company had sufficient deemed asset value that no security deposit was due. However, decreases in prices and production
      and related netbacks from relevant properties could result in a decline in the Company&#8217;s deemed asset value to a point where a deposit could be due in the future. The current liability framework is under revision by the AER. A percentage-based
      retirement framework is expected to be introduced, but further details are unknown at this time.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The AER requires purchasers of AER licensed oil and natural gas assets
      to have an LMR of 2.0 or higher immediately following the transfer of a license. This LMR requirement for well transfers hinders our ability to generate capital by selling oil and natural gas assets as there are less qualified buyers.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A requirement to provide security deposit funds to the AER in the future
      would result in the diversion of cash on hand and operating cash flows that could otherwise be used to fund oil and natural gas reserve replacement efforts, which could in turn have a material adverse effect on our business, financial condition and
      results of operations. If Barnwell fails to comply with the requirements of the LLR program, Barnwell&#8217;s oil and natural gas subsidiary would be subject to the AER&#8217;s enforcement provisions which could include suspension of operations and
      non-compliance fees and could ultimately result in the AER serving the Company with a closure order to shut-in all operated wells. Additionally, if Barnwell is non-compliant, the Company would be prohibited from transferring well licenses which would
      prohibit us from selling any oil and natural gas assets until the required cash deposit is made with the AER.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">25</font></div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We are not fully insured against certain environmental risks, either
      because such insurance is not available or because of high premium costs. In particular, insurance against risks from environmental pollution occurring over time, as opposed to sudden and catastrophic damages, is not available on economically
      reasonable terms. Accordingly, any site reclamation or abandonment costs actually incurred in the ordinary course of business in a specific period could negatively impact our cash flow. Should we be unable to fully fund the cost of remedying an
      environmental problem, we might be required to suspend operations or enter into interim compliance measures pending completion of the required remedy.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We may fail to fully identify potential problems related to acquired reserves or to
      properly estimate those reserves.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We periodically evaluate acquisitions of reserves, properties, prospects
      and leaseholds and other strategic transactions that appear to fit within our overall business strategy. Our evaluation includes an assessment of reserves, future oil and natural gas prices, operating costs, potential for future drilling and
      production, validity of the seller&#8217;s title to the properties and potential environmental issues, litigation and other liabilities.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In connection with these assessments, we perform a review of the subject
      properties that we believe to be generally consistent with industry practices. Our review will not reveal all existing or potential problems nor will it permit us to become sufficiently familiar with the properties to fully assess their deficiencies
      and potential recoverable reserves. Inspections may not always be performed on every well, and environmental problems are not necessarily observable even when an inspection is undertaken. Even when problems are identified, the seller may be unwilling
      or unable to provide effective contractual protection against all or part of the problems. We often are not entitled to contractual indemnification for environmental liabilities or title defects in excess of the amounts claimed by us before closing
      and acquire properties on an &#8220;as is&#8221; basis.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">There are numerous uncertainties inherent in estimating quantities of
      proved oil and gas reserves and future production rates and costs with respect to acquired properties, and actual results may vary substantially from those assumed in the estimates.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If oil and natural gas prices decline, we may be required to take write-downs of the
      carrying values of our oil and natural gas properties.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Oil and natural gas prices affect the value of our oil and natural gas
      properties as determined in our full cost ceiling calculation. Any future ceiling test write-downs will result in reductions of the carrying value of our oil and natural gas properties and an equivalent charge to earnings.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">26</font></div>
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  </div>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The oil and natural gas industry is highly competitive.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We compete for capital, acquisitions of reserves, undeveloped lands,
      skilled personnel, access to drilling rigs, service rigs and other equipment, access to processing facilities, pipeline capacity and in many other respects with a substantial number of other organizations, most of which have greater technical and
      financial resources than we do. Some of these organizations explore for, develop and produce oil and natural gas, carry on refining operations and market oil and other products on a worldwide basis. As a result of these complementary activities, some
      of our competitors may have competitive resources that are greater and more diverse than ours. Furthermore, many of our competitors may have a competitive advantage when responding to factors that affect demand for oil and natural gas production,
      such as changing prices and production levels, the cost and availability of alternative fuels and the application of government regulations. If our competitors are able to capitalize on these competitive resources, it could adversely affect our
      revenues and profitability.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">An increase in operating costs greater than anticipated could have a material adverse effect on our results
      of operations and financial condition.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Higher operating costs for our properties will directly decrease the
      amount of cash flow received by us. Electricity, supplies, and labor costs are a few of the operating costs that are susceptible to material fluctuation. The need for significant repairs and maintenance of infrastructure may increase as our
      properties age. A significant increase in operating costs could negatively impact operating results and cash flow.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our operating results are affected by our ability to market the oil and natural gas that we produce.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our business depends in part upon the availability, proximity and
      capacity of oil and natural gas gathering systems, pipelines and processing facilities. Canadian federal and provincial, as well as United States federal and state, regulation of oil and natural gas production, processing and transportation, tax and
      energy policies, general economic conditions, and changes in supply and demand could adversely affect our ability to produce and market oil and natural gas. If market factors change and inhibit the marketing of our production, overall production or
      realized prices may decline.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We are not the operator and have limited influence over the operations of certain of our oil and natural gas
      properties.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We hold minority interests in certain of our oil and natural gas
      properties. As a result, we cannot control the pace of exploration or development, major decisions affecting the drilling of wells, the plan for development and production at non-operated properties, or the timing and amount of costs related to
      abandonment and reclamation activities although contract provisions give Barnwell certain consent rights in some matters. The operator&#8217;s influence over these matters can affect the pace at which we incur capital expenditures. Additionally, as certain
      underlying joint venture data is not accessible to us, we depend on the operators at non-operated properties to provide us with reliable accounting information. We also depend on operators and joint operators to maintain the financial resources to
      fund their share of all abandonment and reclamation costs.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">27</font></div>
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  </div>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Actual reserves will vary from reserve estimates.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Estimating reserves is inherently uncertain and the reserves estimation
      process involves significant decisions and assumptions in the evaluation of available geological, geophysical, engineering and economic data. The reserve data and standardized measures set forth herein are only estimates. Ultimately, actual reserves
      attributable to our properties will vary from estimates, and those variations may be material. The estimation of reserves involves a number of factors and assumptions, including, among others:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">oil and natural gas prices as prescribed by SEC regulations;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">historical production from our wells compared with production rates from similar producing wells in the area;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">future commodity prices, production and development costs, royalties and capital expenditures;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">initial production rates;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">production decline rates;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">ultimate recovery of reserves;</font></td>
      </tr>

  </table>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">success of future development activities;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">marketability of production;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">effects of government regulation; and</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">other government levies that may be imposed over the producing life of reserves.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If these factors, assumptions and prices prove to be inaccurate, actual
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      (&#8220;PUDs&#8221;) in the future.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">SEC rules require that, subject to limited exceptions, PUDs may only be
      booked if they relate to wells scheduled to be drilled within five years after the date of booking. This requirement may limit our ability to book PUDs as we pursue our drilling program.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Part of our strategy involves using some of the latest available horizontal drilling
      and completion techniques. The results of our drilling are subject to drilling and completion technique risks, and results may not meet our expectations for reserves or production.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Many of our operations involve, and are planned to utilize, the latest
      drilling and completion techniques as developed by our service providers in order to maximize production and ultimate recoveries and therefore generate the highest possible returns. Risks we face while completing our wells include, but are not
      limited to, the inability to fracture stimulate the planned number of stages, the inability to run tools and other equipment the entire length of the well bore during completion operations, the inability to recover such tools and other equipment, and
      the inability to successfully clean out the well bore after completion of the final fracture stimulation. Ultimately, the success of these drilling and completion techniques can only be evaluated over time as more wells are drilled and production
      profiles are established over a sufficiently long time period. If our drilling results are less than anticipated or we are unable to execute our drilling program because of capital constraints, lease expirations, limited access to gathering systems
      and takeaway capacity, and/or prices for crude oil, natural gas, and natural gas liquids decline, then the return on our investment for a particular project may not be as attractive as we anticipated and we could incur material write-downs of oil and
      gas properties and the value of our undeveloped acreage could decline in the future.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">28</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Production and reserves, if any, attributable to the use of enhanced
      recovery methods are inherently difficult to predict. If our enhanced recovery methods do not allow for the extraction of crude oil, natural gas, and associated liquids in a manner or to the extent that we anticipate, we may not realize an acceptable
      return on our investments in such projects.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Delays in business operations could adversely affect the amount and timing of our cash inflows.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In addition to the usual delays in payment by purchasers of oil and
      natural gas to the operators of our properties, and the delays of those operators in remitting payment to us, payments between any of these parties may also be delayed by:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">restrictions imposed by lenders;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">accounting delays;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">delays in the sale or delivery of products;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">delays in the connection of wells to a gathering system;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">blowouts or other accidents;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">adjustments for prior periods;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">recovery by the operator of expenses incurred in the operation of the properties; and</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the establishment by the operator of reserves for these expenses.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Any of these delays could expose us to additional third party credit risks.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The oil and natural gas market in which we operate exposes us to potential liabilities that may not be
      covered by insurance.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 39.4pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our operations are subject to all of the risks associated with the
      operation and development of oil and natural gas properties, including the drilling of oil and natural gas wells, and the production and transportation of oil and natural gas. These risks include encountering unexpected formations or pressures,
      premature declines of reservoirs, blow-outs, equipment failures and other accidents, cratering, sour gas releases, uncontrollable flows of oil, natural gas or well fluids, adverse weather conditions, pollution, other environmental risks, fires and
      spills. A number of these risks could result in personal injury, loss of life, or environmental and other damage to our property or the property of others.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 39.4pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">While we carry various levels of insurance, we could be affected by
      civil, criminal, regulatory or administrative actions, claims or proceedings. We cannot fully protect against all of the risks listed above, nor are all of these risks insurable. There is no assurance that any applicable insurance or indemnification
      agreements will adequately protect us against liability for the risks listed above. We could face substantial losses if an event occurs for which we are not fully insured or are not indemnified against or a customer or insurer fails to meet its
      indemnification or insurance obligations. In addition, there can be no assurance that insurance will continue to be available to cover any or all of these risks, or, even if available, that insurance premiums or other costs will not rise
      significantly in the future, so as to make the cost of such insurance prohibitive.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Deficiencies in operating practices and record keeping, if any, may increase our risks and
      liabilities relating to incidents such as spills and releases and may increase the level of regulatory enforcement actions.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">29</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  </div>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our operations are subject to domestic and foreign government regulation and other risks, particularly in
      Canada and the United States.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s oil and natural gas operations are affected by political
      developments and laws and regulations, particularly in Canada and the United States, such as restrictions on production, restrictions on imports and exports, the maintenance of specified reserves, tax increases and retroactive tax claims,
      expropriation of property, cancellation of contract rights, environmental protection controls, environmental compliance requirements and laws pertaining to workers&#8217; health and safety. Further, the right to explore for and develop oil and natural gas
      on lands in Alberta, Saskatchewan and British Columbia is controlled by the governments of each of those provinces. Changes in royalties and other terms of provincial leases, permits and reservations may have a substantial effect on Barnwell&#8217;s
      operations. We derive a significant portion of our revenues from our operations in Canada; 57% in fiscal 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Additionally, our ability to compete in the Canadian oil and natural gas
      industry may be adversely affected by governmental regulations or other policies that favor the awarding of contracts to contractors in which Canadian nationals have substantial ownership interests. Furthermore, we may face governmentally imposed
      restrictions or fees from time to time on the transfer of funds to the U.S.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Government regulations control and often limit access to potential
      markets and impose extensive requirements concerning employee safety, environmental protection, pollution control and remediation of environmental contamination. Environmental regulations, in particular, prohibit access to some markets and make
      others less economical, increase equipment and personnel costs and often impose liability without regard to negligence or fault. In addition, governmental regulations may discourage our customers&#8217; activities, reducing demand for our products and
      services.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Compliance with foreign tax and other laws may adversely affect our operations.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Tax and other laws and regulations are not always interpreted
      consistently among local, regional and national authorities. Income tax laws, other legislation or government incentive programs relating to the oil and natural gas industry may in the future be changed or interpreted in a manner that adversely
      affects us and our stockholders. It is also possible that in the future we will be subject to disputes concerning taxation and other matters in Canada, including the manner in which we calculate our income for tax purposes, and these disputes could
      have a material adverse effect on our financial performance.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Unforeseen title defects may result in a loss of entitlement to production and reserves.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Although we conduct title reviews in accordance with industry practice
      prior to any purchase of resource assets or property, such reviews do not guarantee that an unforeseen defect in the chain of title will not arise and defeat our title to the purchased assets. If such a defect were to occur, our entitlement to the
      production from such purchased assets could be jeopardized.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">30</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Risks Related to Land Investment Segment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Receipt of future payments from KD I and KD II and cash distributions from the Kukio
      Resort Land Development Partnerships is dependent upon the developer&#8217;s continued efforts and ability to develop and market the property.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We are entitled to receive future payments based on a percentage of the
      sales prices of residential lots sold within the Kaupulehu area by KD I and KD II as well as a percentage of future distributions KD II makes to its members. However, in order to collect such payments we are reliant upon the developer, KD I and KD
      II, in which we own a non-controlling ownership interest, to continue to market the remaining lots within Increment I and to proceed with the development or sale of the remaining portion of Increment II. Additionally, future cash distributions from
      the Kukio Resort Land Development Partnerships, which includes KD I and KD II, are also dependent on future lot sales in Increment I by KD I and the development or sale of Increment II by KD II. It is uncertain when or if KD II will develop or sell
      the remaining portion of Increment II, and there is no assurance with regards to the amounts of future sales from Increments I and II. We do not have a controlling interest in the partnerships, and therefore are dependent on the general partner for
      development decisions. The receipt of future payments and cash distributions could be jeopardized if the developer fails to proceed with development and marketing of the property.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We hold investment interests in unconsolidated land development partnerships, which are
      accounted for using the equity method of accounting, in which we do not have a controlling interest. These investments involve risks and are highly illiquid.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">These investments involve risks which include:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the lack of a controlling interest in these partnerships and, therefore, the inability to require that the entities sell
            assets, return invested capital or take any other action without obtaining the majority vote of partners;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">potential for future additional capital contributions to fund operations and development activities;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the adverse impact on overall profitability if the entities do not achieve the financial results projected;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the reallocation of amounts of capital from other operating initiatives and/or an increase in indebtedness to pay
            potential future additional capital contributions, which could in turn restrict our ability to access additional capital when needed or to pursue other important elements of our business strategy;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">undisclosed, contingent or other liabilities or problems, unanticipated costs, and an inability to recover or manage such
            liabilities and costs and which could delay or prevent development of the real estate held by the land development partnerships; and</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">certain underlying partnership data is not accessible to us, therefore we depend on the general partner to provide us with
            reliable accounting information.</font></td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">31</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  </div>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We may be required to write-down the carrying value of our investment in the Kukio
      Resort Land Development Partnerships if our assumptions about future lot sales and profitability prove incorrect. Any write-down would negatively impact our results of operations.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In analyzing the value of our investment in the Kukio Resort Land
      Development Partnerships, we have made assumptions about the level of future lot sales, operating and development costs, cash generation and market conditions. These assumptions are based on management&#8217;s and the general partner&#8217;s best estimates and
      if the actual results differ significantly from these assumptions, we may not be able to realize the value of the assets recorded, which could lead to an impairment of certain of these assets in the future. Such a write-down would have a negative
      impact on our results of operations.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our land investment business is concentrated in the state of Hawaii. As a result, our
      financial results are dependent on the economic growth and health of Hawaii, particularly the island of Hawaii.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s land investment segment is impacted by the condition of
      Hawaii&#8217;s real estate market, which is affected by Hawaii&#8217;s economy and Hawaii&#8217;s tourism industry, as well as the United States and world economies in general. Any future cash flows from Barnwell&#8217;s land development activities are subject to, among
      other factors, the level of real estate activity and prices, the demand for new housing and second homes on the island of Hawaii, the rate of increase in the cost of building materials and labor, the introduction of building code modifications,
      changes to zoning laws, and the level of confidence in Hawaii&#8217;s economy.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The occurrence of natural disasters in Hawaii could adversely affect our business.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The occurrence of a natural disaster in Hawaii such as, but not limited
      to, earthquakes, landslides, hurricanes, tornadoes, tsunamis, volcanic activity, droughts and floods, could have a material adverse effect on our land investments. The occurrence of a natural disaster could also cause property and flood insurance
      rates and deductibles to increase, which could reduce demand for real estate in Hawaii.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Risks Related to Contract Drilling Segment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Demand for water well drilling and/or pump installation is volatile. A decrease in
      demand for our services could adversely affect our revenues and results of operations.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Demand for services is highly dependent upon land development activities
      in the state of Hawaii. As also noted above, the real estate development industry is cyclical in nature and is particularly vulnerable to shifts in local, regional, and national economic conditions outside of our control such as interest rates,
      housing demand, population growth, employment levels and job growth and property taxes. A decrease in water well drilling and/or pump installation contracts will result in decreased revenues and operating results.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If we are unable to accurately estimate the overall risks, requirements or costs when
      bidding on or negotiating a contract that is ultimately awarded, we may achieve a lower than anticipated profit or incur a loss on the contract.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Contracts are usually fixed price per lineal foot drilled and require the
      provision of line-item materials at a fixed unit price based on approved quantities irrespective of actual per unit costs. Under such contracts, prices are established in part on cost and scheduling estimates, which are based on a number of
      assumptions, many of which are beyond our control. Expected profits on contracts are realized only if costs are accurately estimated and successfully controlled. We may not be able to obtain compensation for additional work performed or expenses
      incurred as a result of changes or inaccuracies in these estimates and underlying assumptions, such as unanticipated sub-surface site conditions, unanticipated technical problems, equipment failures, inefficiencies, cost of raw materials, schedule
      delays due to constraints on drilling hours, weather delays, or accidents. If cost estimates for a contract are inaccurate, or if the contract is not performed within cost estimates, then cost overruns may result in losses or cause the contract not
      to be as profitable as expected.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">32</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  </div>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A significant portion of our contract drilling business is dependent on municipalities
      and a decline in municipal spending could adversely impact our business.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A significant portion of our contract drilling division revenues is
      derived from water and infrastructure contracts with governmental entities or agencies; 48% in fiscal 2021. Reduced tax revenues and governmental budgets may limit spending by local governments which in turn will affect the demand for our services.
      Material reductions in spending by a significant number of local governmental agencies could have a material adverse effect on our business, results of operations, liquidity and financial position.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our contract drilling operations face significant competition.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We face competition for our services from a variety of competitors. Many
      of our competitors utilize drilling rigs that drill as quickly as our equipment but require less labor. Our strategy is to compete based on pricing and to a lesser degree, quality of service. If we are unable to compete effectively with our
      competitors, our financial results could be adversely affected.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The loss of or damage to key vendor, customer or sub-contractor relationships would
      adversely affect our operations.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our contract drilling business is dependent on our relationships with
      key vendors, customers and subcontractors. The loss of or damage to any of our key relationships could negatively affect our business.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Awarding of contracts is dependent upon our ability to obtain contract bid and
      performance bonds from insurers.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">There can be no assurance that our ability to obtain such bonds will
      continue on the same basis as the past. Additionally, bonding insurance rates may increase and have an impact on our ability to win competitive bids, which could have a corresponding material impact on contract drilling operating results.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The contracts in our backlog are subject to change orders and cancellation.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our backlog consists of the uncompleted portion of services to be
      performed under contracts that have been started and new contracts not yet started. Our contracts are subject to change orders and cancellations, and such changes could adversely affect our operations.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The occurrence of natural disasters in Hawaii could adversely affect our business.</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The occurrence of a natural disaster in Hawaii such as, but not limited
      to, earthquakes, landslides, hurricanes, tornadoes, tsunamis, volcanic activity, droughts and floods, could have a material adverse effect on our ability to complete our contracts.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">33</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  </div>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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        <td style="width: 80pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>ITEM 1B.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a006_v1"></a>UNRESOLVED STAFF COMMENTS</b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">None.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0px; font: 10pt 'Times New Roman';"></td>
        <td style="width: 80pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>ITEM 2.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a007_v1"></a>PROPERTIES</b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Oil and Natural Gas and Land Investment Properties</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The location and character of Barnwell&#8217;s oil and natural gas properties
      and its land investment properties, are described above under Item 1, &#8220;Business.&#8221;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Corporate Offices</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s corporate headquarters is located in Honolulu, Hawaii, in a
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0px; font: 10pt 'Times New Roman';"></td>
        <td style="width: 80pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>ITEM 3.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a008_v1"></a>LEGAL PROCEEDINGS</b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell is routinely involved in disputes with third parties that
      occasionally require litigation. In addition, Barnwell is required to maintain compliance with all current governmental controls and regulations in the ordinary course of business. Barnwell&#8217;s management is not aware of any claims or litigation
      involving Barnwell that are likely to have a material adverse effect on its results of operations, financial position or liquidity.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0px; font: 10pt 'Times New Roman';"></td>
        <td style="width: 80pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>ITEM 4.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a009_v1"></a>MINE SAFETY DISCLOSURES</b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Disclosure is not applicable to Barnwell.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a010_v1"></a>PART II</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; margin-left: 0in; text-indent: 0in; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a011_v1"></a>ITEM 5. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;MARKET FOR
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  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Market Information</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The principal market on which Barnwell&#8217;s common stock is being traded is
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 25%; border-bottom: 1pt solid Black; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Quarter Ended</font></td>
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        <td style="width: 11%; border-bottom: 1pt solid Black; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">High</font></td>
        <td style="width: 1%; padding-bottom: 1pt">&#160;</td>
        <td style="width: 11%; border-bottom: 1pt solid Black; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Low</font></td>
        <td style="width: 1%; padding-bottom: 1pt">&#160;</td>
        <td style="width: 25%; border-bottom: 1pt solid Black; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Quarter Ended</font></td>
        <td style="width: 1%; padding-bottom: 1pt">&#160;</td>
        <td style="width: 11%; border-bottom: 1pt solid Black; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">High</font></td>
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        <td style="width: 12%; font: 10pt 'Times New Roman'; border-bottom: 1pt solid Black; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Low</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">December 31, 2019</font></td>
        <td>&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$1.11</font></td>
        <td>&#160;</td>
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        <td>&#160;</td>
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        <td>&#160;</td>
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        <td>&#160;</td>
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      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">March 31, 2020</font></td>
        <td>&#160;</td>
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        <td>&#160;</td>
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        <td>&#160;</td>
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        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$6.99</font></td>
        <td>&#160;</td>
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      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">June 30, 2020</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$2.10</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$0.44</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">June 30, 2021</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$4.34</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$2.02</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">September 30, 2020</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$1.64</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$0.66</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">September 30, 2021</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$3.59</font></td>
        <td>&#160;</td>
        <td style="padding-top: 0.35pt; font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$2.00</font></td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">&#160; <br>
  </p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <b>Holders</b></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b> <br>
    </b></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As of December 10, 2021, there were 9,445,625 shares of common stock,
      par value $0.50, outstanding. As of December 10, 2021, there were approximately 80 shareholders of record and approximately 1,000 beneficial owners.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Dividends</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">No dividends were declared or paid during fiscal years 2021 or 2020. The
      payment of future cash dividends will depend on, among other things, our financial condition, operating cash flows, the amount of cash inflows from land investment activities, and the level of our oil and natural gas capital expenditures and any
      other investments.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Securities Authorized for Issuance Under Equity Compensation Plans</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">None.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Stock Performance Graph and Cumulative Total Return</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Disclosure is not required as Barnwell qualifies as a smaller reporting company.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0px; font: 10pt 'Times New Roman';"></td>
        <td style="width: 84.2pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>ITEM 6.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a012_v1"></a>SELECTED FINANCIAL DATA</b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Disclosure is not required as Barnwell qualifies as a smaller reporting company.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">35</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; margin-left: 0in; text-indent: 0in; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a013_v1"></a>ITEM 7. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;MANAGEMENT&#8217;S
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  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following discussion is intended to assist in the understanding of
      the Consolidated Balance Sheets of Barnwell Industries, Inc. and subsidiaries (collectively referred to herein as &#8220;Barnwell,&#8221; &#8220;we,&#8221; &#8220;our,&#8221; &#8220;us&#8221; or the &#8220;Company&#8221;) as of September 30, 2021 and 2020, and the related Consolidated Statements of
      Operations, Comprehensive Income (Loss), Equity (Deficit), and Cash Flows for the years ended September 30, 2021 and 2020. This discussion should be read in conjunction with the consolidated financial statements and related Notes to Consolidated
      Financial Statements included in this report.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Current Outlook</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Impact of COVID-19</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In March 2020, the World Health Organization declared the COVID-19
      outbreak a global pandemic and the United States and Canadian governments declared the virus a national emergency shortly thereafter. The ongoing global health crisis (including resurgences) resulting from the pandemic have, and continue to, disrupt
      the normal operations of many businesses, including the temporary closure or scale-back of business operations and/or the imposition of either quarantine or remote work or meeting requirements for employees, either by government order or on a
      voluntary basis. While the outbreak recently appeared to be trending downward, particularly as vaccination rates increased, new variants of COVID-19 continue emerging, including the highly transmissible Delta variant and the newly-discovered Omicron
      variant (currently a &#8220;variant of concern&#8221;), spreading throughout the U.S. and globally and causing significant uncertainty. The global economy, our markets and our business have been, and may continue to be, materially and adversely affected by
      COVID-19.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The COVID-19 outbreak materially and adversely affected our business
      operations and financial condition as a result of the deteriorating market outlook, the global economic recession and weakened liquidity. Although demand for oil and oil prices has recovered from the lows of March through May of the prior year,
      uncertainty regarding future oil prices has impacted and continues to impact the Company&#8217;s financial condition and outlook. While the Company&#8217;s contract drilling segment remained operational throughout fiscal 2020 and 2021 and continues to work, the
      continuing potential impact of COVID-19 on the health of our contract drilling segment&#8217;s crews and ability or desire for customers to continue such work is uncertain, and any discontinuation of contracts currently in backlog would result in a
      material adverse impact to the Company&#8217;s financial condition and outlook. Though availability of vaccines and reopening of state and local economies has improved the outlook for recovery from COVID-19&#8217;s impacts, the impact of the Delta or Omicron
      variant or other new, more contagious or lethal variants that may emerge, the effectiveness of COVID-19 vaccines against the Delta or Omicron variant or such other variants and the related responses by governments, including reinstated
      government-imposed lockdowns or other measures, cannot be predicted at this time. Both the health and economic aspects of the COVID-19 pandemic remain highly fluid and the future course of each is uncertain. We cannot foresee whether the outbreak of
      COVID-19 will be effectively contained on a sustained basis, nor can we predict the severity and duration of its impact. If the outbreak of COVID-19 is not effectively and timely controlled on a sustained basis going forward, our business operations
      and financial condition may be materially and adversely affected by factors that we cannot foresee. Any of these factors and other factors beyond our control could have an adverse effect on the overall business environment, cause uncertainties in the
      regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Going Concern</i></font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our ability to sustain our business in the future will depend on the
      sufficiency of our cash on hand, oil and natural gas operating cash flows, which are highly sensitive to volatile oil and natural gas prices, contract drilling operating cash flows, which are subject to large changes in demand, and future land
      investment segment proceeds and distributions from the Kukio Resort Land Development Partnerships, the timing of which are both highly uncertain and not within Barnwell&#8217;s control. A sufficient level of such cash and cash inflows are necessary to fund
      discretionary oil and natural gas capital expenditures, which must be economically successful to provide sufficient returns, as well as fund our non-discretionary outflows such as oil and natural gas asset retirement obligations and ongoing operating
      and general and administrative expenses. In addition, as discussed in the &#8220;Asset Retirement Obligation&#8221; section of &#8220;Liquidity and Capital Resources,&#8221; a significant amount of funds will be required to be put on deposit with Canadian regulatory
      authorities to fund abandonments at the Company&#8217;s oil and natural gas properties in the Manyberries area. Other sources and potential sources of funding are discussed below.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2020, the Company listed its corporate office on the 29th
      floor of a commercial office building in downtown Honolulu, Hawaii for sale and on September 30, 2021, the Company&#8217;s Honolulu corporate office was sold for approximately $1,864,000, net of related costs.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On March 16, 2021, the Company initiated an at-the-market offering
      program (&#8220;ATM&#8221;) pursuant to which the Company may offer and sell, from time to time, shares of its common stock under price and volume guidelines set by the Company&#8217;s Board of Directors and the terms and conditions described in the Registration
      Statement. The sale of shares under the ATM began in May 2021 and as of September 30, 2021, the Company sold 1,167,987 shares of common stock resulting in net proceeds of $3,784,000 after commissions and fees of $123,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In April 2021, the Company re-initiated the marketing of its non-core
      oil and natural gas properties in the Spirit River, Wood River, Medicine River, Kaybob, Bonanza, Balsam and Thornbury areas for sale. On July 8 2021, Barnwell entered into and completed a purchase and sale agreement with an independent third party
      and sold its interests in certain natural gas and oil properties located in the Spirit River area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $1,047,000 in order to, among other
      things, reflect an economic effective closing date of sale of July 8, 2021. From Barnwell&#8217;s net proceeds, $526,000 was withheld for remittance by the buyers to the Canada Revenue Agency for potential amounts due for Barnwell&#8217;s Canadian income taxes
      related to the sale. Negotiations regarding the potential sales of other non-core oil and natural gas properties is ongoing, however there is no assurance that the sale of any of the other non-core properties will occur.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We have experienced a trend of losses and negative operating cash flows
      in three of the last four years. During fiscal 2020 and 2021, continuing uncertainties regarding the impacts of the COVID-19 pandemic on our business and the sufficiency of our cash balances and future cash inflows as described above raised
      substantial doubt about our ability to meet our estimated cash outflows or continue as a going concern. However, due to the $3,784,000 of net proceeds raised by the ATM through September 30, 2021, the proceeds received from the sale of the Company&#8217;s
      corporate office and its interests in certain natural gas and oil properties in the Spirit River area, as well as the $7,156,000 of net cash inflows in the year ended September 30, 2021 from land segment percentage of sales proceeds and distributions
      from the Kukio Resort Land Development Partnerships, substantial doubt about our ability to meet our estimated cash outflows or continue as a going concern for one year from the date of the filing of this report has been overcome.</font></p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Critical Accounting Policies and Estimates</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company considers an accounting estimate to be critical if the
      accounting estimate requires the Company to make assumptions that are difficult or subjective about matters that were highly uncertain at the time that the accounting estimate was made, and changes in the estimate that are reasonably likely to occur
      in periods subsequent to the period in which the estimate was made, or use of different estimates that the Company could have used in the current period, would have a material impact on the Company&#8217;s financial condition or results of operations. The
      most critical accounting policies inherent in the preparation of the Company&#8217;s consolidated financial statements are described below. We continue to monitor our accounting policies to ensure proper application of current rules and regulations.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas Properties - full cost ceiling calculation and depletion</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>Policy Description</u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We use the full cost method of accounting for our oil and natural gas
      properties under which we are required to conduct quarterly calculations of a &#8220;ceiling,&#8221; or limitation, on the carrying value of oil and natural gas properties . The ceiling limitation is the sum of 1) the discounted present value (at 10%), using
      average first-day-of-the-month prices during the 12-month period ending as of the balance sheet date held constant over the life of the reserves, of Barnwell&#8217;s estimated future net cash flows from estimated production of proved oil and natural gas
      reserves, less estimated future expenditures to be incurred in developing and producing the proved reserves but excluding future cash outflows associated with settling asset retirement obligations with the exception of those associated with proved
      undeveloped reserves from wells that are to be drilled in the future; plus 2) the cost of major development projects and unproven properties not subject to depletion, if any; plus 3) the lower of cost or estimated fair value of unproven properties
      included in costs subject to depletion; less 4) related income tax effects. If net capitalized costs exceed this limit, the excess is expensed.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">All items classified as unevaluated and unproved properties are assessed
      on a quarterly basis for possible impairment or reduction in value. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but
      not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During
      any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to
      amortization.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>Judgments and Assumptions</u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The estimate of our oil and natural gas reserves is a major component of
      the ceiling calculation and represents the component that requires the most subjective judgments. Estimates of reserves are forecasts based on engineering data, historical data, projected future rates of production and the timing of future
      expenditures. The process of estimating oil and natural gas reserves requires substantial judgment, resulting in imprecise determinations, particularly for new discoveries. Our reserve estimates are prepared at least annually by independent petroleum
      reserve engineers. The passage of time provides more quantitative and qualitative information regarding estimates of reserves, and revisions are made to prior estimates to reflect updated information. A portion of the revisions are attributable to
      changes in the rolling 12-month average first-day-of-the-month prices, which impact the economics of producible reserves. In the last three fiscal years, annual revisions to our reserve volume estimates have averaged 36% of the previous year&#8217;s
      estimate, due in large part to the impacts of volatile oil and natural gas prices which change the economic viability of producing such reserves and changes in estimated proved undeveloped reserves which can fluctuate from year to year depending upon
      the Company&#8217;s plans and ability to fund the capital expenditures necessary to develop such reserves. There can be no assurance that more significant revisions will not be necessary in the future. If future significant revisions are necessary that
      reduce previously estimated reserve quantities, such revisions could result in a write-down of oil and natural gas properties.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If reported reserve volumes were revised downward by 5% at the end of
      fiscal 2021, the ceiling limitation would have decreased approximately $398,000 before income taxes, which would not have resulted in an increase in the ceiling impairment before income taxes due to sufficient room between the ceiling and the
      carrying value of oil and natural gas properties at the end of fiscal 2021 of approximately $5,716,000.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In addition to the impact of the estimates of proved reserves on the
      calculation of the ceiling, estimated proved reserves are also a significant component of the quarterly calculation of depletion expense. The lower the estimated reserves, the higher the depletion rate per unit of production. Conversely, the higher
      the estimated reserves, the lower the depletion rate per unit of production. If reported reserve volumes were revised downward by 5% as of the beginning of fiscal 2021, depletion for fiscal 2021 would have increased by approximately $26,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">While the quantities of proved reserves require substantial judgment,
      the associated prices of oil, natural gas and natural gas liquids reserves are the average first-day-of-the-month prices during the 12-month period ending in the reporting period on a constant basis as prescribed by SEC regulations. Additionally, the
      applicable discount rate that is used to calculate the discounted present value of the reserves is mandated at 10%. Costs included in future net revenues are determined in a similar manner. As such, the future net revenues associated with the
      estimated proved reserves are not based on an assessment of future prices or costs.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contract Drilling Revenues and Operating Expenses</i></font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>Policy Description</u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Through contracts which are normally less than twelve months in
      duration, Barnwell drills water and water monitoring wells and installs and repairs water pumping systems in Hawaii. Barnwell recognizes revenue from well drilling or the installation of pumps over time based on total costs incurred on the projects
      relative to the total expected costs to satisfy the performance obligation as management believes this is an accurate representation of the percentage of completion as control is continuously transferred to the customer. Uninstalled materials, which
      typically consists of well casing or pumps, are excluded in the costs-to-costs calculation for the duration of the contract as including these costs would result in a distortion of progress towards satisfaction of the performance obligation due to
      the resulting cumulative catch-up in margin in a single period. An equal amount of cost and revenue is recorded when uninstalled materials are controlled by the customer, which is typically when Barnwell has the right to payment for the materials and
      when the materials are delivered to the customer&#8217;s site or location and such materials have been accepted by the customer. Uninstalled materials are held in inventory and included in &#8220;Other current assets&#8221; on the Company&#8217;s Consolidated Balance Sheets
      until control is transferred to the customer. When the estimate on a contract indicates a loss, Barnwell records the entire estimated loss in the period the loss becomes known.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Unexpected significant inefficiencies that were not considered a risk at
      the time of entering into the contract, such as design or construction execution errors that result in significant wasted resources, are excluded from the measure of progress toward completion and the costs are expensed as incurred.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">To the extent a contract is deemed to have multiple performance
      obligations, the Company allocates the transaction price of the contract to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The contract price may include variable
      consideration, which includes such items as increases to the transaction price for unapproved change orders and claims for which price has not yet been agreed by the customer. The Company estimates variable consideration using either the most likely
      amount or expected value method, whichever is a more appropriate reflection of the amount to which it expects to be entitled based on the characteristics and circumstances of the contract. Variable consideration is included in the estimated
      transaction price to the extent it is probable that a significant reversal of cumulative recognized revenue will not occur.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Contracts are sometimes modified for a change in scope or other
      requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company&#8217;s contract modifications are for goods and services that are
      not distinct from the existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either
      as an increase or decrease) on a cumulative catchup basis.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>Judgments and Assumptions</u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Management evaluates the performance of contracts on an individual
      basis. In the ordinary course of business, but at least quarterly, we prepare updated estimates that may impact the cost and profit or loss for each contract based on actual results to date plus management&#8217;s best estimate of costs to be incurred to
      complete each performance obligation. Increases or decreases in the estimated costs to complete a performance obligation without a change to the contract price has the impact to decrease or increase, respectively, the contract completion percentage
      applied to the contract price to calculate the cumulative contract revenue to be recognized to date. Changes in the cost estimates can have a material impact on our contract revenue and are reflected in the results of operations when they become
      known. The nature of accounting for these contracts is such that refinements of the estimated costs to complete may occur and are characteristic of the estimation process due to changing conditions and new developments. Many factors and assumptions
      can and do change during a contract performance obligation period which can result in a change to contract profitability including unforeseen underground geological conditions (to the extent that contract remedies are unavailable), the availability
      and costs of skilled contract labor, the performance of major material suppliers, the performance of major subcontractors, unusual weather conditions and unexpected changes in material costs, changes in the scope and nature of work to be performed,
      and unexpected construction execution errors, among others. Any revisions to estimated costs to complete the performance obligation from period to period as a result of changes in these factors can materially affect revenue and operating results in
      the period such revisions are necessary. In addition, many contracts give the customer a unilateral right to cancel for convenience or other than for cause. In accordance with FASB ASC 606-10-32-4, our estimates are based on the assumption that the
      existing contract will not be cancelled. Any unforeseen cancellation of a contract may result in a material revision to our estimates.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We have a long history of working with multiple types of projects and
      preparing cost estimates, and we rely on the expertise of key personnel to prepare what we believe are reasonable best estimates given available facts and circumstances. Due to the nature of the work involved, however, judgment is involved to
      estimate the costs to complete and the amounts estimated could have a material impact on the revenue we recognize in each accounting period. We can not estimate unforeseen events and circumstances which may result in actual results being materially
      different from previous estimates.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Income Taxes</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>Policy Description</u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Income taxes are determined using the asset and liability method.
      Deferred tax assets and liabilities are recognized for the estimated future tax impacts of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and
      liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
      in the period that includes the enactment date.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Deferred income tax assets are routinely assessed for realizability. A
      valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax asset will not be realized.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell recognizes the financial statement effects of tax positions
      when it is more likely than not that the position will be sustained by a taxing authority.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>Judgments and Assumptions</u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We make estimates and judgments in determining our income tax expense
      for each reporting period. Significant changes to these estimates could result in an increase or decrease in our tax provision in future periods. We are also required to make judgments about the recoverability of deferred tax assets and when it is
      more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is provided. We consider available positive and negative evidence and available tax planning strategies when assessing the realizability of
      deferred tax assets. Accordingly, changes in our business performance and unforeseen events could require a further increase in the valuation allowance or a reversal in the valuation allowance in future periods. This could result in a charge to, or
      an increase in, income in the period such determination is made, and the impact of these changes could be material.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In addition, Barnwell operates within the U.S. and Canada and is subject
      to audit by taxing authorities in these jurisdictions. Barnwell records accruals for the estimated outcomes of these audits, and the accruals may change in the future due to new developments in each matter. Tax benefits are recognized when we
      determine that it is more likely than not that such benefits will be realized. Management evaluates its potential exposures from tax positions taken that have or could be challenged by taxing authorities. These potential exposures result because
      taxing authorities may take positions that differ from those taken by management in the interpretation and application of statutes, regulations and rules. Management considers the possibility of alternative outcomes based upon past experience,
      previous actions by taxing authorities (e.g., actions taken in other jurisdictions) and advice from tax experts. Where uncertainty exists due to the complexity of income tax statutes and where the potential tax amounts are significant, we generally
      seek independent tax opinions to support our positions. If our evaluation of the likelihood of the realization of benefits is inaccurate, we could incur additional income tax and interest expense that would adversely impact earnings, or we could
      receive tax benefits greater than anticipated which would positively impact earnings, either of which could be material.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Overview</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell is engaged in the following lines of business: 1) acquiring,
      developing, producing and selling oil and natural gas in Canada and Oklahoma (oil and natural gas segment), 2) investing in land interests in Hawaii (land investment segment), and 3) drilling wells and installing and repairing water pumping systems
      in Hawaii (contract drilling segment).</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas Segment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell is involved in the acquisition and development of oil and
      natural gas properties in Canada where we initiate and participate in acquisition and developmental operations for oil and natural gas on properties in which we have an interest, and evaluate proposals by third parties with regard to participation in
      exploratory and developmental operations elsewhere. Additionally, through its wholly-owned subsidiary BOK, Barnwell is indirectly involved in several non-operated oil and natural gas investments in Oklahoma.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell sells all of its oil and natural gas under short-term contracts
      with marketers based on prices indexed to market prices. The price of natural gas, oil and natural gas liquids is freely negotiated between the buyers and sellers. Oil and natural gas prices are determined by many factors that are outside of our
      control. Market prices for oil and natural gas products are dependent upon factors such as, but not limited to, changes in market supply and demand, which are impacted by overall economic activity, changes in weather, pipeline capacity constraints,
      inventory storage levels, and output. Oil and natural gas prices are very difficult to predict and fluctuate significantly. Natural gas prices tend to be higher in the winter than in the summer due to increased demand, although this trend has become
      less pronounced due to the increased use of natural gas to generate electricity for air conditioning in the summer and increased natural gas storage capacity in North America.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Oil and natural gas exploration, development and operating costs
      generally follow trends in product market prices, thus in times of higher product prices the cost of exploring, developing and operating the oil and natural gas properties will tend to escalate as well. Capital expenditures are required to fund the
      exploration, development, and production of oil and natural gas. Cash outlays for capital expenditures are largely discretionary, however, a minimum level of capital expenditures is required to replace depleting reserves. Due to the nature of oil and
      natural gas exploration and development, significant uncertainty exists as to the ultimate success of any drilling effort.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Land Investment Segment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Through Barnwell&#8217;s 77.6% interest in Kaupulehu Developments, 75%
      interest in KD Kona, and 34.45% non-controlling interest in KKM Makai, the Company&#8217;s land investment interests include the following:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The right to receive percentage of sales payments from KD I resulting from the sale of single-family
              residential lots by KD I, within Increment I of the Kaupulehu Lot 4A area located in the North Kona District of the island of Hawaii. Kaupulehu Developments is entitled to receive payments from KD I based on the following percentages of the
              gross receipts from KD I&#8217;s sales at Increment I: 10% of such aggregate gross proceeds greater than $100,000,000 up to $300,000,000; and 14% of such aggregate gross proceeds in excess of $300,000,000. Inventory of unsold lots at Increment I
              were nine single-family lots at September 30, 2021.</font></p>
        </td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The right to receive 15% of the distributions of KD II, the cost of which is to be solely borne by KDK out of its 55%
            ownership interest in KD II, plus a priority payout of 10% of KDK&#8217;s cumulative net profits derived from Increment II sales subsequent to Phase 2A, up to a maximum of $3,000,000. Such interests are limited to distributions or net profits
            interests and Barnwell does not have any partnership interest in KD II or KDK through its interest in Kaupulehu Developments. Barnwell also has rights to three single-family residential lots in Phase 2A of Increment II, and four single-family
            residential lots in phases subsequent to Phase 2A when such lots are developed by KD II, all at no cost to Barnwell. Barnwell is committed to commence construction of improvements within 90 days of the transfer of the four lots in the phases
            subsequent to Phase 2A as a condition of the transfer of such lots. Also, in addition to Barnwell&#8217;s existing obligations to pay professional fees to certain parties based on percentages of its gross receipts, Kaupulehu Developments is now also
            obligated to pay an amount equal to 0.72% and 0.20% of the cumulative net profits of KD II to KD Development and a pool of various individuals, respectively, all of whom are partners of KKM and are unrelated to Barnwell. Two developed
            single-family lots were sold in Increment II in prior years and the remaining 420 developable acres at Increment II are entitled for up to 350 homesites. The remaining acreage within Increment II is not yet under development, and there is no
            assurance that development of such acreage will in fact occur. No definitive development plans have been made by the developer of Increment II as of the date of this report.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">An indirect 19.6% non-controlling ownership interest in KD Kukio Resorts, KD Maniniowali and KD I and an indirect 10.8%
            non-controlling ownership interest in KD II through KDK. These entities own certain real estate and development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast
            of the island of Hawaii, as well as Kukio Resort&#8217;s real estate sales office operations. KDK was the developer of Kaupulehu Lot 4A Increments I and II. The partnerships derive income from the sale of residential parcels as well as from
            commissions on real estate sales by the real estate sales office and revenues resulting from the sale of private club memberships.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Approximately 1,000 acres of vacant leasehold land zoned conservation in the Kaupulehu Lot 4C area, which currently has no
            development potential without both a development agreement with the lessor and zoning reclassification.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contract Drilling Segment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell drills water and water monitoring wells and installs and
      repairs water pumping systems in Hawaii. Contract drilling results are highly dependent upon the quantity, dollar value and timing of contracts awarded by governmental and private entities and can fluctuate significantly.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Business Environment</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our operations are located in Canada and in the states of Hawaii and
      Oklahoma. Accordingly, our business performance is directly affected by macroeconomic conditions in those areas, as well as general economic conditions of the U.S. domestic and world economies.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas Segment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell realized an average price for oil of $51.74 per barrel during
      the year ended September 30, 2021, an increase of 53% from $33.85 per barrel realized during the prior year. While oil prices have recovered from the significant lows of March and May of the prior year, the Company is unable to reasonably predict
      future oil prices and the impacts future oil prices will have on the Company.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell realized an average price for natural gas of $2.62 per Mcf
      during the year ended September 30, 2021, an increase of 60% from $1.64 per Mcf realized during the prior year.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Land Investment Segment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Future land investment payments and any future cash distributions from
      our investment in the Kukio Resort Land Development Partnerships are dependent upon the sale of the remaining nine residential lots within Increment I by KD I and potential future development or sale of the remaining portion of Increment II by KD II
      of Kaupulehu Lot 4A. The amount and timing of future land investment segment proceeds from percentage of sales payments and cash distributions from the Kukio Resort Land Development Partnerships are highly uncertain and out of our control, and there
      is no assurance with regards to the amounts of future sales of residential lots within Increments I and II. No definitive development plans have been made by the developer of Increment II as of the date of this report.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell estimates that it will be partially reliant upon land
      investment segment proceeds in order to provide sufficient liquidity to fund our operations in 2022 and beyond. However, there can be no assurance that the amount of future land investment segment proceeds will provide the liquidity required.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contract Drilling Segment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Demand for water well drilling and/or pump installation and repair
      services is volatile and dependent upon land development activities within the state of Hawaii. Management currently estimates that well drilling activity for fiscal 2022 will be significantly lower than fiscal 2021 based upon the number and value of
      contracts in backlog.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Results of Operations</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Summary</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      $6,253,000, an $11,009,000 increase in operating results from a net loss of $4,756,000 in fiscal 2020. The following factors affected the results of operations for the current fiscal year as compared to the prior fiscal year:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A $6,653,000 improvement in oil and natural gas segment operating results, before income taxes, primarily
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        </td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A $5,441,000 increase in equity in income from affiliates as a result of increased operating results of the Kukio Resort
            Land Development Partnerships;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A $1,463,000 increase in land investment segment operating results, before non-controlling interests&#8217; share of such
            profits, due to the sale of eight lots in the current period, whereas there were only two lot sales in the same period in the prior year;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A $2,341,000 gain recognized in the current year period from the termination of the Company&#8217;s Post-retirement Medical plan
            and $1,982,000 in gains from the sales of assets in the current year period;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A $3,214,000 decrease in contract drilling segment operating results, before income taxes, primarily resulting from
            decreased activity attributable to a significant well drilling contract as this contract was essentially completed as of December 31, 2020;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A $1,268,000 increase in general and administrative expenses primarily due to increases in share-based compensation
            expense, bonuses and director fees, and costs related to the cooperation and support agreement with the MRMP Stockholders in the current year period as compared to the same period in the prior year, partially offset by a reduction in legal fees
            in the current year period as compared to the same period in the prior year; and</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A $1,336,000 gain recognized in the prior year period from the sale of the Company&#8217;s leasehold interest in a three-quarter
            of an acre contract drilling segment maintenance and storage yard in Honolulu, Hawaii, whereas there was no such gain in the current period.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>General</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell conducts operations in the U.S. and Canada. Consequently,
      Barnwell is subject to foreign currency translation and transaction gains and losses due to fluctuations of the exchange rates between the Canadian dollar and the U.S. dollar. Barnwell cannot accurately predict future fluctuations of the exchange
      rates and the impact of such fluctuations may be material from period to period. To date, we have not entered into foreign currency hedging transactions.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      increased 6% in fiscal 2021, as compared to fiscal 2020, and the exchange rate of the Canadian dollar to the U.S. dollar increased 5% at September 30, 2021, as compared to September 30, 2020. Accordingly, the assets, liabilities, stockholders&#8217; equity
      and revenues and expenses of Barnwell&#8217;s subsidiaries operating in Canada have been adjusted to reflect the change in the exchange rates. Barnwell&#8217;s Canadian dollar liabilities are greater than its Canadian dollar assets; therefore, increases or
      decreases in the value of the Canadian dollar to the U.S. dollar generate other comprehensive loss or income, respectively. Other comprehensive income and losses are not included in net earnings (loss). Other comprehensive loss due to foreign
      currency translation adjustments, net of taxes, for fiscal 2021 was $283,000, a $137,000 change from other comprehensive loss due to foreign currency translation adjustments, net of taxes, of $146,000 in fiscal 2020. There were no taxes on other
      comprehensive loss due to foreign currency translation adjustments in fiscal 2021 and 2020 due to a full valuation allowance on the related deferred tax assets.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">45</font></div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and natural gas</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>Selected Operating Statistics</u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following tables set forth Barnwell&#8217;s annual average prices per unit
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="14">Annual Average Price Per Unit</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: right; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: right; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
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        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
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      <tr style="text-align: center; vertical-align: bottom">
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
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        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 10%; text-align: right">1.64</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="width: 10%; text-align: right">0.98</td>
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        <td style="width: 1%">&#160;</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">51.74</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">33.85</td>
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        <td>&#160;</td>
        <td style="text-align: left">$</td>
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        <td>&#160;</td>
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        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">31.92</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">17.16</td>
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        <td>&#160;</td>
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        <td style="text-align: right">14.76</td>
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        <td>&#160;</td>
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      </tr>

  </table>
  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: right; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: right; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">147,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: right">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">24,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">21,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">3,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 40.7pt;">&#160;</p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">* &#160;Natural gas price per unit is net of pipeline charges.</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 40.7pt;">&#160;</p>
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      to a natural decline in oil production from the Spirit River area as compared to the prior year period. In addition, the Company sold its oil and natural gas properties in the Spirit River area in July 2021. The decrease was partially offset by an
      increase in production from the Twining area due largely to the acquisition of additional wells in the area. Net natural gas and natural gas liquids production increased 7% and 14%, respectively, as compared to the same period of the prior year, also
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: bottom">
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        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
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        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 10%; font-weight: bold; text-align: right">1,738,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid">&#160;</td>
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        <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">)</td>
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        <td style="text-align: left; padding-bottom: 1pt">)</td>
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        <td style="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double">1,526,000</td>
        <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">&#160;</td>
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        <td style="text-align: left; border-bottom: Black 2.5pt double">$</td>
        <td style="text-align: right; border-bottom: Black 2.5pt double">285,000</td>
        <td style="text-align: left; padding-bottom: 2.5pt">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the year ended September 30, 2021, Barnwell received $1,738,000
      in percentage of sales payments from KD I from the sale of eight single-family lots within Phase II of Increment I. During the year ended September 30, 2020, Barnwell received $325,000 in percentage of sales payments from KD I from the sale of two
      single-family lots within Phase II of Increment I.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      Developments received percentage of sales payments totaling $600,000 from the sale of three lots within Phase II of Increment I. Financial results from the receipt of these payment will be reflected in Barnwell&#8217;s quarter ending December 31, 2021.
      Accordingly, with the inclusion of the lot sales subsequent to September 30, 2021, six single-family lots of the 80 lots developed within Increment I remained to be sold as of the date of this report. The Company does not have a controlling interest
      in Increments I and II, and there is no assurance with regards to the amounts of future sales from Increments I and II, or that the remaining acreage within Increment II will be developed. No definitive development plans have been made by the
      developer of Increment II as of the date of this report.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contract drilling</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Contract drilling revenues and costs are associated with well drilling
      and water pump installation, replacement and repair in Hawaii.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      fiscal 2021, as compared to $10,994,000 in fiscal 2020, and contract drilling costs decreased $1,958,000 (26%) to $5,555,000 in fiscal 2021, as compared to $7,513,000 in fiscal 2020. The contract drilling segment generated an $89,000 operating loss
      before general and administrative expenses during fiscal 2021, a decrease in operating results of $3,214,000 as compared to an operating profit before general and administrative expenses of $3,125,000 in fiscal 2020. The decrease in operating results
      was primarily due to a significant well drilling contract in the prior year period. The significant well drilling contract was for multiple wells and was based on a fixed rate per day or fixed rate per hour, depending upon the activity, as opposed to
      the Company&#8217;s typical contracts that are based on a fixed price per lineal foot drilled. Up to three drilling rigs were being used at this job during the prior year period with crews working extended hours. However, activity related to this contract
      was essentially completed in the quarter ended December 31, 2020 and thus contract drilling revenues and costs have decreased in the current year period as compared to the same period of the prior year.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">47</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">At September 30, 2021, there was a backlog of six well drilling and ten
      pump installation and repair contracts, of which five well drilling and nine pump installation and repair contracts were in progress as of September 30, 2021. The backlog of contract drilling revenues as of December 1, 2021 was approximately
      $9,500,000, of which $5,900,000 is expected to be realized in fiscal 2022 with the remainder to be recognized in the following fiscal year. Based on these contracts in backlog, contract drilling segment operating profit is estimated to be higher in
      fiscal 2022 as compared to fiscal 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      failure of a hole opener which broke apart leaving pieces in the bottom of a water well being drilled in Hawaii. Efforts to remove the items from the well were unsuccessful through the quarter ended March 31, 2020 and subsequently the Company
      determined that the well should be abandoned and a new well drilled at no incremental cost to the customer as per the terms of the contract. Accordingly, all the costs to drill and abandon the first well, which are all wasted costs, were excluded
      from the measurement of progress toward contract completion and all such costs were fully accrued in the quarter ended March 31, 2020, as this contract was determined to be a loss job. In September 2020, while making progress towards the drilling of
      a replacement well in different location, the drill string twisted off and became lodged in the well borehole, which required a stoppage of drilling and the need to dislodge and retrieve the broken drill string. Accordingly, the estimated total
      rework costs to remediate the situation was accrued at September 30, 2020. In January 2021, the broken drill string was retrieved from the well borehole and drilling of the replacement well recommenced.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      the contract drilling segment for one customer were determined to not meet the contract specifications for plumbness. Subsequently, in the quarter ended March 31, 2020, the Company executed a separate five-year warranty agreement with the customer
      for one of the wells that did not meet plumbness. Under the terms of the agreement, if the lack of plumbness is determined to be the cause of a pump failure within the warranty period, the Company would be obligated to replace the pump at no cost to
      the customer. If the Company is unable to replace the pump using industry-standard methods, or if there are two or more pump failures attributable to lack of plumbness within the five-year warranty period, the Company would be obligated to drill a
      new well at no cost to the customer. Negotiations with the customer are currently ongoing for the other well that the customer claims did not meet plumbness despite the fact that the independent consulting engineer for the job concluded that the most
      recent plumbness test, completed after the well was cased with casing cemented into place as per the contract, showed that the well meets the plumbness specifications of the contract. Management believes the degrees of deviation for both wells are
      not impactful to the performance of the submersible pumps that will be installed in those wells. Accordingly, no accruals have been recorded as of September 30, 2021 as there is no probable or estimable contingent liability.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">48</font></div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In July 2020, the Staff of the State of Hawaii&#8217;s Commission on Water
      Resource Management (&#8220;Commission&#8221;) circulated a draft of a proposed recommendation to the Commission under which the Company, the water utility, the water utility&#8217;s independent hydrologist firm and the owner of the land on which the two
      aforementioned water wells were drilled would be assessed penalty fines because each of the wells were calculated to have been drilled beyond the depth permitted by the permit. The wells were drilled to a depth to penetrate certain layers of
      impermeable rock necessary to access the aquifer at the instructions and on the advice of the hydrologist hired by the owner of the well. The Company&#8217;s share of the proposed penalties and fines was originally calculated to approximately $1,200,000.
      Subsequently, the Staff of the Commission acknowledged that one well had not been drilled to a depth beyond its permitted depth and the fines on that well were eliminated. Additionally, the fines applicable to the depth of the second well were
      dropped in lieu of the parties entering into an agreement to perform a water quality study and repurpose a current well into a monitoring well. Accordingly, the Company recorded a contingent liability of approximately $300,000 at September 30, 2020
      and no subsequent revision to the accrual has been recorded as of September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      contracts in recent years that has generally led to increased competition for available contracts and lower margins on awarded contracts. The Company is unable to predict the near-term and long-term availability of water well drilling and pump
      installation and repair contracts as a result of this volatility in demand. While the Company&#8217;s contract drilling segment remained operational throughout fiscal 2020 and 2021 and continues to work, the continuing potential impact of COVID-19 on the
      health of our contract drilling segment&#8217;s crew and ability or desire for customers to continue such work is uncertain, and any discontinuation of contracts currently in backlog for any reason would result in a material adverse impact to the Company&#8217;s
      financial condition and outlook.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>General and administrative expenses</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">General and administrative expenses increased $1,268,000 (22%) to
      $7,088,000 in fiscal 2021, as compared to $5,820,000 in fiscal 2020. The increase was primarily due to increases in share-based compensation expense, bonuses and director fees, and costs related to the cooperation and support agreement with the MRMP
      Stockholders as discussed below, in the current year period as compared to the same period in the prior year. The increase was partially offset by a reduction in fees related to legal services, proxy solicitation, proxy advisory, and public relation
      costs in the current year period as compared to the same period in the prior year.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In January 2021, the Company entered into a cooperation and support
      agreement with MRMP-Managers LLC, Ned L. Sherwood Revocable Trust, Ned L. Sherwood and Bradley M. Tirpak (collectively, the &#8220;MRMP Stockholders&#8221;), with respect to the potential proxy contest pertaining to the election of directors to our Board of
      Directors. Pursuant to the terms of the agreement, among other things, the Company and the MRMP Stockholders agreed on certain nominations and voting with respect to the directors nominated to stand for reelection to the Board of Directors at the
      2021 annual meeting of stockholders, which was held on April 20, 2021. The Company agreed to reimburse the MRMP Stockholders for their reasonable, documented out-of-pocket fees and expenses (including legal expenses) of up to a maximum of $300,000 in
      connection with the MRMP Stockholders&#8217; election contest at the Company&#8217;s 2020 annual meeting of stockholders and the negotiation of this agreement and accordingly, incurred approximately $296,000 in expenses related to this agreement in the year
      ended September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">49</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Depletion, depreciation, and amortization</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Depletion, depreciation, and amortization decreased $1,184,000 (55%) in
      fiscal 2021 as compared to fiscal 2020 primarily due to a decrease in the oil and natural gas depletion rates as a result of ceiling test impairment write-downs in the prior year as discussed in the &#8220;Oil and natural gas&#8221; section above.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Impairment of assets</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Under the full cost method of accounting, the Company performs quarterly
      oil and natural gas ceiling test calculations. There was a ceiling test impairment of $630,000 during the year ended September 30, 2021. There was a $4,326,000 ceiling test impairment during the year ended September 30, 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Changes in the mandated 12-month historical rolling average
      first-day-of-the-month prices for oil, natural gas and natural gas liquids prices, the value of reserve additions as compared to the amount of capital expenditures to obtain them, and changes in production rates and estimated levels of reserves,
      future development costs and the estimated market value of unproved properties, impact the determination of the maximum carrying value of oil and natural gas properties.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      drilling rig and related ancillary equipment, with an aggregate net carrying value of $725,000, as assets held for sale and recorded an impairment of $38,000 to reduce the value of these assets to its fair value, less estimated selling costs. The
      fair value of these assets in the aggregate amount of $687,000 is recorded as &#8220;Assets held for sale&#8221; on the Company&#8217;s Consolidated Balance Sheet at September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      impairment in the carrying value of its investment in leasehold land interest in Lot 4C as a result of recent uncertainty regarding the timing of future development and potential use of water rights within Lot 4C prior to the expiration of the lease
      term. The lease terminates in December 2025.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Gain on termination of Post-Retirement Medical plan</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In June 2021, the Company terminated its Post-retirement Medical plan,
      which covered officers of the Company who had attained at least 20 years of service of which at least 10 years were at the position of Vice President or higher, their spouses and qualifying dependents, effective June 4, 2021. Pursuant to the
      Post-retirement Medical plan document, the Company, as the sponsor of the Post-retirement Medical plan, had the right to terminate the plan within sixty days&#8217; notice to each participant and the plan may be terminated by the resolution of the Board of
      the Directors of the Company. Further, under the terms of the plan document, the participants in the Post-retirement Medical plan were not entitled to any unpaid vested benefits thereunder upon plan termination. The Post-retirement Medical plan was
      an unfunded plan and the Company funded benefits when payments were made. As a result of the plan termination, the Company recognized a non-cash gain of $2,341,000 during the year ended September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Gain on sale of assets</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On July 8, 2021, Barnwell entered into and completed a purchase and sale
      agreement with an independent third party and sold its interests in certain natural gas and oil properties located in the Spirit River area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to
      $1,047,000 in order to, among other things, reflect an economic effective closing date of sale of July 8, 2021. From Barnwell&#8217;s net proceeds, $526,000 was withheld for remittance by the buyers to the Canada Revenue Agency for potential amounts due
      for Barnwell&#8217;s Canadian income taxes related to the sale.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">50</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The difference in the relationship between capitalized costs and proved
      reserves of the Spirit River properties sold as compared to the properties retained by Barnwell was significant as there was a 93% difference in capitalized costs divided by proved reserves if the gain was recorded versus the gain being credited
      against the full-cost pool. Accordingly, Barnwell recorded a gain on the sale of Spirit River of $818,000 in the year ended September 30, 2021 in accordance with the guidance in Rule 4-10(c)(6)(i) of Regulation S-X of the rules and regulations of the
      SEC, which requires an allocation of capitalized costs to the reserves sold and reserves retained on the basis of the relative fair values of the properties as there was a substantial economic difference between the properties sold and those
      retained. Also included in the gain calculation were asset retirement obligations of $77,000 assumed by the purchaser.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On September 30, 2021, the Company&#8217;s Honolulu corporate office was sold
      for approximately $1,864,000, net of related costs, resulting in a gain of $1,164,000, which was recognized in the year ended September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In March 2020, the Company sold its leasehold interest in a
      three-quarter of an acre contract drilling segment maintenance and storage yard in Honolulu, Hawaii to an unrelated third party for a $1,100,000 cash payment. As a result of the sale transaction, the Company recognized a gain of $1,336,000, inclusive
      of a $236,000 gain from the reversal of the storage yard&#8217;s lease liability in excess of the right-of-use asset, in the year ended September 30, 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Equity in income of affiliates</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s investment in the Kukio Resort Land Development Partnerships
      is accounted for using the equity method of accounting. Barnwell was allocated partnership income of $5,793,000 in fiscal 2021, as compared to allocated income of $352,000 in fiscal 2020. The increase in the allocated partnership income is primarily
      due to the Kukio Resort Land Development Partnerships&#8217; sale of eight lots during the current year, whereas there were two lot sales in the prior year. In addition, there was a significant increase in real estate resale activity in the current year
      period for which the Kukio Resort Land Development Partnerships&#8217; real estate sales office earns commissions revenue, as well as an increase in the Kukio Resort Land Development Partnerships&#8217; revenues related to an increase in club memberships sold.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The increase is also attributed to distributions received from the Kukio
      Resort Land Development Partnerships in excess of our investment balance of $654,000 which was recorded as income during the year ended September 30, 2021 and $459,000 in preferred return payments received from KKM in the year ended September 30,
      2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the year ended September 30, 2021, the Company received cumulative
      distributions from the Kukio Resort Land Development Partnerships in excess of our investment balance and in accordance with applicable accounting guidance, the Company suspended its equity method earnings recognition and reduced its Kukio Resort
      Land Development Partnership investment balance to zero as of September 30, 2021. In addition, the Company recorded the distributions received in excess of our investment balance of $654,000 as equity in income of affiliates during the year ended
      September 30, 2021. The Company records the distributions in excess of our investment in the Kukio Resort Land Development Partnerships as income because the distributions are not refundable by agreement or by law and the Company is not liable for
      the obligations of or otherwise committed to provide financial support to the Kukio Resort Land Development Partnerships. The Company will record future equity method earnings only after our share of the Kukio Resort Land Development Partnership&#8217;s
      cumulative earnings during the suspended period exceeds our share of the Kukio Resort Land Development Partnership&#8217;s income recognized for the excess distributions.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"> <br>
    </font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">51</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell has the right to receive distributions from the Kukio Resort
      Land Development Partnerships via its non-controlling interests in KD Kona and KKM, based on its respective partnership sharing ratios of 75% and 34.45%, respectively. Additionally, Barnwell was entitled to a preferred return from KKM on any
      allocated equity in income of the Kukio Resort Land Development Partnerships in excess of its partnership sharing ratio for cumulative distributions to all of its partners in excess of $45,000,000 from those partnerships. Cumulative distributions
      from the Kukio Resort Land Development Partnerships have reached the $45,000,000 threshold and in the quarter ended December 31, 2020, the Kukio Resort Land Development Partnerships made distributions in excess of the threshold out of the proceeds
      from the sale of two lots in Increment I. Accordingly, Barnwell received a total of $459,000 in preferred return payments, which is reflected as an additional equity pickup in the &#8220;Equity in income of affiliates&#8221; line item on the accompanying
      Consolidated Statement of Operations for the year ended September 30, 2021. The preferred return payments received in the quarter ended December 31, 2020 brought the cumulative preferred return total to $656,000, which is the total amount Barnwell
      was entitled to, and thus there is no more preferred return outstanding as of September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the year ended September 30, 2021, Barnwell received net cash
      distributions in the amount of $6,011,000 from the Kukio Resort Land Development Partnerships after distributing $683,000 to non-controlling interests. Of the $6,011,000 net cash distribution received from the Kukio Resort Land Development
      Partnerships, $459,000 represented a partial payment of the preferred return from KKM, as discussed above.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the year ended September 30, 2020, Barnwell received net cash
      distributions in the amount of $360,000 from the Kukio Resort Land Development Partnerships after distributing $20,000 to non-controlling interests. Of the $360,000 net cash distribution received from the Kukio Resort Land Development Partnerships,
      $197,000 represented a partial payment of the preferred return from KKM.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Subsequent to the close of the year ended September 30, 2021, Kaupulehu
      Developments received percentage of sales payments totaling $600,000 from the sale of three lots within Phase II of Increment I. Financial results from the receipt of these payment will be reflected in Barnwell&#8217;s quarter ending December 31, 2021.
      Accordingly, with the inclusion of the lot sales subsequent to September 30, 2021, six single-family lots of the 80 lots developed within Increment I remained to be sold as of the date of this report. The Company does not have a controlling interest
      in Increments I and II, and there is no assurance with regards to the amounts of future sales from Increments I and II, or that the remaining acreage within Increment II will be developed. No definitive development plans have been made by the
      developer of Increment II as of the date of this report.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">52</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Income taxes</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The components of earnings (loss) before income taxes, after adjusting
      the earnings (loss) for non-controlling interests, are as follows:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="6">Year ended September 30,</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 74%; text-align: left; padding-left: 2.6pt">United States</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 10%; font-weight: bold; text-align: right">5,436,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 10%; text-align: right">1,518,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-bottom: 1pt; padding-left: 2.6pt">Canada</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,149,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(6,271,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,585,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(4,753,000</td>
        <td style="padding-bottom: 2pt; text-align: left">)</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font: 10pt 'Times New Roman';">Barnwell&#8217;s effective consolidated income tax rate for fiscal 2021, after adjusting earnings
      (loss) before income taxes for non-controlling interests, was 5% as compared to nil for fiscal 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Consolidated taxes do not bear a customary relationship to pretax
      results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax
      liabilities, are not estimated to have a future benefit as tax credits or deductions. Income from our non-controlling interest in the Kukio Resort Land Development Partnerships is treated as non-unitary for state of Hawaii unitary filing purposes,
      thus unitary Hawaii losses provide limited sheltering of such non-unitary income. Income from our investment in the Oklahoma oil venture is 100% allocable to Oklahoma, and therefore, receives no benefit from consolidated or unitary losses.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On June 28, 2019, the Government of Alberta reduced its corporate income
      tax rate from 12% to 11%, effective July 1, 2019, with further reductions in the rate by 1% on January 1 of every year until it reaches 8% on January 1, 2022. On June 29, 2020, the Government of Alberta introduced Alberta&#8217;s Recovery Plan which will,
      among other things, reduce Alberta&#8217;s general corporate income tax rate to 8% (from 10%) effective July 1, 2020. This reduction was enacted in the quarter ended December 31, 2020. Canadian deferred tax assets and liabilities have been measured using
      the enacted tax rates in effect for the year in which the differences are expected to reverse. Alberta rate changes have no significant impact to earnings/loss as a result of a full valuation allowance being applied to Canadian deferred tax assets.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Net earnings attributable to non-controlling interests</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Earnings and losses attributable to non-controlling interests represent
      the non-controlling interests&#8217; share of revenues and expenses related to the various partnerships and joint ventures in which Barnwell has controlling interests and consolidates.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Net earnings attributable to non-controlling interests totaled $950,000
      in fiscal 2021, as compared to net earnings attributable to non-controlling interests of $79,000 in fiscal 2020. The $871,000 (1,103%) increase is primarily due to increases in the amount of Kukio Resort Land Development Partnerships&#8217; income and
      percentage of sales proceeds received in the current year period as compared to the same period in the prior year.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Retirement plans curtailment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In December 2019, the Company&#8217;s Board of Directors approved a resolution
      to freeze all future benefit accruals for all participants under the Company&#8217;s defined benefit pension plan (&#8220;Pension Plan&#8221;) and Supplemental Executive Retirement Plan (&#8220;SERP&#8221;) effective December 31, 2019. Consequently, current participants in the
      Pension Plan and SERP no longer accrue new benefits under the plans and new employees of the Company are no longer eligible to enter the Pension Plan and SERP as participants after December 31, 2019. The freezing of the Pension Plan and SERP
      triggered a curtailment which required a remeasurement of the projected benefit obligations of the Pension Plan and SERP and resulted in a $1,726,000 reduction in unrecognized pension benefit costs that were previously included in accumulated other
      comprehensive loss, with a corresponding curtailment gain in other comprehensive income which was recorded during the year ended September 30, 2020.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Inflation</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The effect of inflation on Barnwell has generally been to increase its
      cost of operations, general and administrative costs and direct costs associated with oil and natural gas production and contract drilling operations. Oil and natural gas prices realized by Barnwell are essentially determined by world prices for oil
      and western Canadian/Midwestern U.S. prices for natural gas.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Impact of Recently Issued Accounting Standards on Future Filings</i></font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In June 2016, the FASB issued ASU No. 2016-13, &#8220;Financial Instruments -
      Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,&#8221; which replaces the incurred loss model with an expected loss model referred to as the current expected credit loss (&#8220;CECL&#8221;) model. The CECL model is applicable to the
      measurement of credit losses on financial assets measured at amortized cost, including but not limited to trade receivables. This ASU is effective for annual reporting periods beginning after December 15, 2022, and interim periods within those annual
      periods. The FASB has subsequently issued other related ASUs which amend ASU 2016-13 to provide clarification and additional guidance. The Company is currently evaluating the impact of these standards.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In December 2019, the FASB issued ASU No. 2019-12, &#8220;Income Taxes (Topic
      740): Simplifying the Accounting for Income Taxes,&#8221; which enhances and simplifies various aspects of the income tax accounting guidance in ASC 740. This ASU is effective for annual reporting periods beginning after December 15, 2020 and interim
      periods within those annual periods, with early adoption permitted. The adoption of this update is not expected to have a material impact on Barnwell&#8217;s consolidated financial statements.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Liquidity and Capital Resources</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s primary sources of liquidity are cash on hand, cash flow
      generated by operations, land investment segment proceeds, and starting in fiscal 2021, funds generated by the ATM program. At September 30, 2021, Barnwell had $12,134,000 in working capital.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Cash Flows</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Cash flows provided by operating activities totaled $831,000 for fiscal
      2021, as compared to cash flows provided by operating activities of $750,000 for the same period in fiscal 2020. This $81,000 change in operating cash flows was primarily due to a significant increase in distributions of income from the Kukio Resort
      Land Development Partnerships in the current year period, as compared to the prior year, and higher operating results, before non-cash impairment expenses, for the oil and natural gas segment, which was partially offset by significantly lower
      operating results for the contract drilling segment in the current year period as compared to the prior year period. The change was also due to fluctuations in working capital, primarily attributed to fluctuations in other current assets and accounts
      payable in the current period as compared to the prior year period.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Net cash provided by investing activities totaled $3,686,000 for fiscal
      2021, as compared to net cash used in investing activities of $833,000 for fiscal 2020. The $4,519,000 increase in investing cash flows was primarily due to a decrease of $1,193,000 in cash paid for oil and natural gas capital expenditures, a
      $1,241,000 increase in percentage of sales proceeds received, net of fees, an increase of $1,344,000 received in distributions from equity investees in excess of earnings, and a net increase of $764,000 in proceeds from the sale of assets related to
      the sale of the Company&#8217;s Honolulu corporate office in the current year period and the sale of the Company&#8217;s leasehold interest in a three-quarter of an acre contract drilling segment maintenance and storage yard in Honolulu, Hawaii in the prior year
      period.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Cash flows provided by financing activities totaled $2,192,000 for
      fiscal 2021, as compared to cash flows provided by financing activities of $60,000 for fiscal 2020. The $2,132,000 change in financing cash flows was primarily attributed to $3,179,000 in proceeds from issuance of stock, net of costs, related to the
      Company&#8217;s ATM offering in the current year period as compared to none in the prior year period, which was partially offset by an increase of $947,000 in distributions to non-controlling interests in the current year period.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Paycheck Protection Program Loan</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On April 28, 2020, the Company, as obligor, entered into a promissory
      note evidencing an unsecured loan in the approximate amount of $147,000 under the Paycheck Protection Program (&#8220;PPP&#8221;) pursuant to the Coronavirus Aid, Relief, and Economic Security Act (&#8220;CARES&#8221;) that was signed into law in March 2020. The note was to
      mature two years after the date of the loan disbursement with interest at a fixed annual rate of 1.00%, and with the principal and interest payments deferred until ten months after the last day of the covered period. In April 2021, the Company was
      notified by the lender of our PPP loan that the entire PPP loan amount and related accrued interest was forgiven by the Small Business Administration. As a result of the loan forgiveness, the Company recognized a gain on debt extinguishment of
      $149,000 during the year ended September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Canada Emergency Business Account Loan</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In the quarter ended December 31, 2020, the Company&#8217;s Canadian
      subsidiary, Barnwell of Canada, received a loan of CAD$40,000 under the Canada Emergency Business Account (&#8220;CEBA&#8221;) loan program for small businesses. In the quarter ended March 31, 2021, the Company applied for an increase to our CEBA loan and
      received an additional CAD$20,000 for a total loan amount received of CAD$60,000 ($47,000) under the program. The CEBA loan is interest-free with no principal payments required until December 31, 2022, after which the remaining loan balance is
      converted to a three year term loan at 5% annual interest paid monthly. If the Company repays 66.6% of the principal amount prior to December 31, 2022, there will be loan forgiveness of 33.3% up to a maximum of CAD$20,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>At The Market Offering</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On March 16, 2021, the Company entered into a Sales Agreement with
      A.G.P./Alliance Global Partners (&#8220;A.G.P,&#8221;), with respect to the ATM pursuant to which the Company may offer and sell, from time to time, shares of its common stock, par value $0.50 per share, having an aggregate sales price of up to $25 million
      (subject to certain limitations at any time our public float remains under $75 million), through or to A.G.P as the Company&#8217;s sales agent or as principal. Sales of our common stock under the ATM, if any, will be made by any methods deemed to be &#8220;at
      the market offerings&#8221; as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the NYSE American, on any other existing trading market for our Common Stock, or to or through a market maker. Shares of common stock sold
      under the ATM are offered pursuant to the Company&#8217;s Registration Statement on Form S-3 (File No. 333-254365), filed with the Securities and Exchange Commission on March 16, 2021, and declared effective on March 26, 2021 (the &#8220;Registration
      Statement&#8221;), and the prospectus dated March 26, 2021, included in the Registration Statement.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The sale of shares under the ATM began in May 2021 and as of September
      30, 2021, the Company sold 1,167,987 shares of common stock resulting in net proceeds of $3,784,000 after commissions and fees of $123,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Going Concern</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our ability to sustain our business in the future will depend on the
      sufficiency of our cash on hand, oil and natural gas operating cash flows, which are highly sensitive to volatile oil and natural gas prices, contract drilling operating cash flows, which are subject to large changes in demand, and future land
      investment segment proceeds and distributions from the Kukio Resort Land Development Partnerships, the timing of which are both highly uncertain and not within Barnwell&#8217;s control. A sufficient level of such cash and cash inflows are necessary to fund
      discretionary oil and natural gas capital expenditures, which must be economically successful to provide sufficient returns, as well as fund our non-discretionary outflows such as oil and natural gas asset retirement obligations and ongoing operating
      and general and administrative expenses. In addition, as discussed in the &#8220;Asset Retirement Obligation&#8221; section of &#8220;Liquidity and Capital Resources,&#8221; a significant amount of funds will be required to be put on deposit with Canadian regulatory
      authorities to fund abandonments at the Company&#8217;s oil and natural gas properties in the Manyberries area. Other sources and potential sources of funding are discussed below.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2020, the Company listed its corporate office on the 29th
      floor of a commercial office building in downtown Honolulu, Hawaii for sale and on September 30, 2021, the Company&#8217;s Honolulu corporate office was sold for approximately $1,864,000, net of related costs.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On March 16, 2021, the Company initiated an at-the-market offering
      program (&#8220;ATM&#8221;) pursuant to which the Company may offer and sell, from time to time, shares of its common stock under price and volume guidelines set by the Company&#8217;s Board of Directors and the terms and conditions described in the Registration
      Statement. The sale of shares under the ATM began in May 2021 and as of September 30, 2021, the Company sold 1,167,987 shares of common stock resulting in net proceeds of $3,784,000 after commissions and fees of $123,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In April 2021, the Company re-initiated the marketing of its non-core
      oil and natural gas properties in the Spirit River, Wood River, Medicine River, Kaybob, Bonanza, Balsam and Thornbury areas for sale. On July 8 2021, Barnwell entered into and completed a purchase and sale agreement with an independent third party
      and sold its interests in certain natural gas and oil properties located in the Spirit River area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $1,047,000 in order to, among other
      things, reflect an economic effective closing date of sale of July 8, 2021. From Barnwell&#8217;s net proceeds, $526,000 was withheld for remittance by the buyers to the Canada Revenue Agency for potential amounts due for Barnwell&#8217;s Canadian income taxes
      related to the sale. Negotiations regarding the potential sales of other non-core oil and natural gas properties is ongoing, however there is no assurance that the sale of any of the other non-core properties will occur.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We have experienced a trend of losses and negative operating cash flows
      in three of the last four years. During fiscal 2020 and 2021, continuing uncertainties regarding the impacts of the COVID-19 pandemic on our business and the sufficiency of our cash balances and future cash inflows as described above raised
      substantial doubt about our ability to meet our estimated cash outflows or continue as a going concern. However, due to the $3,784,000 of net proceeds raised by the ATM through September 30, 2021, the proceeds received from the sale of the Company&#8217;s
      corporate office and its interests in certain natural gas and oil properties in the Spirit River area, as well as the $7,156,000 of net cash inflows in the year ended September 30, 2021 from land segment percentage of sales proceeds and distributions
      from the Kukio Resort Land Development Partnerships, substantial doubt about our ability to meet our estimated cash outflows or continue as a going concern for one year from the date of the filing of this report has been overcome.</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>NYSE American Continued Listing Standard</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On January 13, 2020, the Company received notice from the NYSE American
      that the Company was not in compliance with Section 1003(a)(i) and Section 1003(a)(ii) of the NYSE American Company Guide (the &#8220;Guide&#8221;), which respectively require an issuer to have (i) stockholders&#8217; equity of $2.0 million or more if such issuer
      reported losses from continuing operations and/or net losses in two of its three most recent fiscal years and (ii) stockholders&#8217; equity of $4.0 million or more if such issuer reported losses from continuing operations and/or net losses in three of
      its four most recent fiscal years, since we reported stockholders&#8217; equity of $1.2 million as of September 30, 2019 and net losses in three of the last four most recent fiscal years then ended, and that the Company&#8217;s common stock could be at risk of
      being delisted.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In accordance with the NYSE American&#8217;s policies and procedures, we
      subsequently submitted a plan (the &#8220;Plan&#8221;) to the NYSE American detailing the steps we planned to take to raise our stockholders&#8217; equity above $4.0 million and regain compliance with Section 1003(a)(i) and Section 1003(a)(ii) of the Guide. On April
      2, 2020, the NYSE American notified the Company that it accepted the Plan and granted the Company an extension for its continued listing until July 13, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On July 13, 2021, the Company filed a Form 8-K report with the
      Securities and Exchange Commission announcing that the Company&#8217;s pro forma stockholders&#8217; equity (unaudited) as of July 13, 2021 was projected to be above the $4.0 million required to comply with Section 1003(a)(i) and Section 1003(a)(ii) of the
      Guide. Accordingly, in a letter dated July 14, 2021, the NYSE American determined the Company had resolved the continued listing deficiency with respect to Section 1003(a)(i) and Section 1003(a)(ii) of the Guide and notified the Company that it had
      successfully regained compliance with the NYSE American continued listing standards.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas Capital Expenditures</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s oil and natural gas capital expenditures, including accrued
      capital expenditures and acquisitions of oil and natural gas properties and excluding additions and revisions to estimated asset retirement obligations, decreased $934,000 from $3,151,000 in fiscal 2020 to $2,217,000 in fiscal 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company participated in the drilling of seven gross (0.20 net)
      non-operated wells in Oklahoma during the year ended September 30, 2021. Capital expenditures incurred by the Company for these Oklahoma wells totaled $1,178,000 for the year ended September 30, 2021. One gross (0.04 net) well was completed and the
      well began flowback production in late May 2021 and the Company&#8217;s share of net production, after royalties, from this well was 1,000 barrels of oil, 4,000 MCF of natural gas and 1,000 barrels of natural gas liquids through September 30, 2021. The
      remaining six gross (0.16 net) wells were all producing in October 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company did not drill or participate in the drilling of wells in
      Canada during the year ended September 30, 2021. Drilling opportunities in the Company&#8217;s core Twining area are being investigated for potential investment in the forthcoming months.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas Property Acquisitions and
        Dispositions</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in; text-align: justify;"><font style="font: 10pt 'Times New Roman';"><i>&#160;</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0pt; margin-left: 0.5in; text-indent: 0in; text-align: justify;"><font style="font: 10pt 'Times New Roman';"><i>Dispositions</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: -0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In April 2021, Barnwell entered into a purchase and sale agreement with
      an independent third party and sold its interests in properties located in the Hillsdown area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $132,000 in order to, among other things,
      reflect an economic effective date of October 1, 2020. $72,000 of the sales proceeds was withheld by the buyers for potential amounts due for Barnwell&#8217;s Canadian income taxes related to the sale. The final determination of the customary adjustments
      to the purchase price has not yet been made, however it is not expected to result in a material adjustment. The proceeds were credited to the full cost pool, with no gain or loss recognized, as the sale did not result in a significant alteration of
      the relationship between capitalized costs and proved reserves.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In April 2021, the Company re-initiated the marketing of its non-core
      oil and natural gas properties in the Spirit River, Wood River, Medicine River, Kaybob, Bonanza, Balsam and Thornbury areas for sale. On July 8, 2021, Barnwell entered into and completed a purchase and sale agreement with an independent third party
      and sold its interests in certain natural gas and oil properties located in the Spirit River area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $1,047,000 in order to, among other
      things, reflect an economic effective closing date of sale of July 8, 2021. From Barnwell&#8217;s net proceeds, $526,000 was withheld for remittance by the buyers to the Canada Revenue Agency for potential amounts due for Barnwell&#8217;s Canadian income taxes
      related to the sale.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The difference in the relationship between capitalized costs and proved
      reserves of the Spirit River properties sold as compared to the properties retained by Barnwell was significant as there was a 93% difference in capitalized costs divided by proved reserves if the gain was recorded versus the gain being credited
      against the full-cost pool. Accordingly, Barnwell recorded a gain on the sale of Spirit River of $818,000 in the year ended September 30, 2021 in accordance with the guidance in Rule 4-10(c)(6)(i) of Regulation S-X of the rules and regulations of the
      SEC, which requires an allocation of capitalized costs to the reserves sold and reserves retained on the basis of the relative fair values of the properties as there was a substantial economic difference between the properties sold and those
      retained. Also included in the gain calculation were asset retirement obligations of $77,000 assumed by the purchaser.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Negotiations regarding the potential sales of other non-core oil and
      natural gas properties is ongoing, however there is no assurance that the sale of any of the other non-core properties will occur.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In the quarter ended December 31, 2019, Barnwell entered into a purchase
      and sale agreement with an independent third party and sold its interests in properties located in the Progress area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $594,000 in order to,
      among other things, reflect an economic effective date of October 1, 2019. The proceeds were credited to the full cost pool, with no gain or loss recognized, as the sale did not result in a significant alteration of the relationship between
      capitalized costs and proved reserves.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">58</font></div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: left; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Acquisitions</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In April 2021, Barnwell acquired additional working interests in oil and
      natural gas properties located in the Twining area of Alberta, Canada for cash consideration of $348,000. The purchase price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective
      date to the closing date. The final determination of the customary adjustments to the purchase price has not yet been made, however it is not expected to result in a material adjustment.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">There were no significant amounts paid for oil and natural gas property
      acquisitions during the year ended September 30, 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Asset Retirement Obligation</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In September 2019, the AER issued an abandonment/closure order for all
      wells and facilities in the Manyberries area which had been largely operated by LGX, an operating company that went into receivership in 2016. The estimated asset retirement obligation for the Company&#8217;s interest in the wells and facilities in the
      Manyberries area is included in &#8220;Asset retirement obligation&#8221; in the Consolidated Balance Sheets. Many 100% LGX-owned wells are to be reclaimed by the OWA. However, as next largest interest holder in 82 of the wells and 7 facilities formerly operated
      by LGX, averaging 11%, the Company is required to take care and custody of those properties and to coordinate their closure. This area has unique access issues as a result of an Emergency Protection Order to protect the Sage Grouse under the Canadian
      Government&#8217;s Species at Risk Act. Access is limited to a window of mid-September to the end of November each year.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Recently, the OWA created a WIP program for specific areas where there
      are a significant number of orphaned wells to abandon. The OWA has the ability and expertise to abandon wells using its internal resources and network of service providers resulting in efficiencies that companies such as Barnwell, would not be able
      to obtain on its own. Under the WIP program, the Company would be required to provide payment for only Barnwell&#8217;s working interest share, however, all WIP&#8217;s would have to participate in the program for the OWA to begin its work. In March 2021, the
      Company was notified by the OWA that Barnwell&#8217;s Manyberries wells were confirmed to be in the WIP program.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Under the new agreement with the OWA, the Company is required to pay the
      abandonment and reclamation costs in advance through a cash deposit. The total cash deposit amount was calculated to be approximately $1,525,000 and the Company paid $888,000 of the total deposit in July and August 2021 and will need to pay the
      remaining balance of $637,000 by August 2022. The Company revised its Manyberries ARO liability based on the OWA&#8217;s revised abandonment and reclamation estimates, which resulted in an increase of approximately $213,000 in the current year. The
      increase in the ARO liability was a result of higher reclamation and remediation costs than anticipated, partially offset by lower abandonment estimates. Based on a review of the details of the cash deposit calculation provided by the OWA, which
      includes amounts added for possible contingencies, the Company believes the required cash deposit amount by the OWA is higher than the actual costs of the asset retirement obligation for the Manyberries wells and that any excess of the deposit over
      actual asset retirement costs for the first phase of the work would be credited toward the second phase of the work. A remaining excess deposit, if any, would ultimately be refunded to the Company upon completion of all of the work.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contractual Obligations</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Disclosure is not required as Barnwell qualifies as a smaller reporting
      company.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Contingencies</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">For a detailed discussion of contingencies, see Note 18 in the &#8220;Notes to Consolidated
      Financial Statements&#8221; in Item 8 of this report.</font></p>
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  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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        <td style="width: 92.1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>ITEM 7A.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a014_v1"></a>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Disclosure is not required as Barnwell qualifies as a smaller reporting company.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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        <td style="width: 89.45pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>ITEM 8.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a015_v1"></a>FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</b></font></td>
      </tr>

  </table>
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  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Report of Independent Registered Public Accounting Firm</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">To the Board of Stockholders and Board of Directors of <br>
      Barnwell Industries, Inc.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Opinion on the Consolidated Financial Statements</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We have audited the accompanying consolidated balance sheets of Barnwell Industries, Inc.
      and subsidiaries (the Company) as of September 30, 2021 and 2020, and the related consolidated statements of operations, comprehensive income (loss), equity (deficit), and cash flows for the years then ended, and the related notes (collectively
      referred to as the &#8220;financial statements&#8221;). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2021 and 2020, and the results of its operations and its cash
      flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Basis for Opinion</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">These financial statements are the responsibility of the entity&#8217;s management. Our
      responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (&#8220;PCAOB&#8221;) and are required to be independent with
      respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We conducted our audits in accordance with the standards of the PCAOB. Those standards
      require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an
      audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the
      entity&#8217;s internal control over financial reporting. Accordingly, we express no such opinion.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our audits included performing procedures to assess the risks of material misstatement of
      the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our
      audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our
      opinion.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Critical Audit Matters</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The critical audit matters communicated below are matters arising from the current period
      audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
      subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate
      opinions on the critical audit matters or on the accounts or disclosures to which they relate.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  </div>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Estimation of Proved Reserves Impacting the Recognition and Valuation of
      Depletion Expense and Impairment and Oil and Gas Properties</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i><u>Critical Audit Matter Description</u></i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As described in Note 1 to the financial statements, the Company accounts for its oil and gas
      properties using the full cost method of accounting which requires management to make estimates of proved reserve volumes and future revenues and expenses to calculate depletion expense and measure its oil and gas properties for potential impairment.
      To estimate the volume of proved reserves and future revenues, management makes significant estimates and assumptions, including forecasting the production decline rate of producing properties and forecasting the timing and volume of production
      associated with the Company&#8217;s development plan for proved undeveloped properties. In addition, the estimation of proved reserves is also impacted by management&#8217;s judgments and estimates regarding the financial performance of wells associated with
      proved reserves to determine if wells are expected, with reasonable certainty, to be economical under the appropriate pricing assumptions required in the estimation of depletion expense and potential impairment measurements. We identified the
      estimation of proved reserves of oil and gas properties, due to its impact on depletion expense and impairment evaluation, as a critical audit matter.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The principal consideration for our determination that the estimation of proved reserves is
      a critical audit matter is that changes in certain inputs and assumptions, which require a high degree of subjectivity necessary to estimate the volume and future revenues of the Company&#8217;s proved reserves could have a significant impact on the
      measurement of depletion expense or the impairment assessment. In turn, auditing those inputs and assumptions required subjective and complex auditor judgement.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i><u>How the Critical Audit Matter was Addressed in the Audit</u></i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We obtained an understanding of the design and implementation of management&#8217;s controls and
      our audit procedures related to the estimation of proved reserves included the following, among others.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We evaluated the level of knowledge, skill, and ability of the Company&#8217;s reservoir engineering specialists and their
            relationship to the Company, made inquiries of those reservoir engineers regarding the process followed and judgments made to estimate the Company&#8217;s proved reserve volumes, and read the reserve report prepared by the Company&#8217;s specialists.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">To the extent key, sensitive inputs and assumptions used to determine proved reserve volumes and other cash flow inputs
            and assumptions are derived from Company&#8217;s accounting records, such as commodity pricing, historical pricing differentials, operating costs, estimated capital costs and working and net revenue interests, we tested management&#8217;s process for
            determining the assumptions, including examining the underlying support, on a sample basis. Specifically, our audit procedures involved testing management&#8217;s assumptions as follows:</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 72.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#9675;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Compared the estimated pricing differentials used in the reserve report to realized prices related to revenue transactions
            recorded in the current year and examined contractual support for the pricing differentials;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 72.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#9675;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Evaluated the models used to estimate the operating costs at year-end compared to historical operating costs;</font></td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  </div>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 72.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#9675;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Compared the models used to determine the future capital expenditures and compared estimated future capital expenditures
            used in the reserve report to amounts expended for recently drilled and completed wells with similar locations;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 72.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#9675;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Evaluated the working and net revenue interests used in the reserve report by inspecting a sample of ownership interests,
            historical pricing differentials, and operating costs to underlying support from the Company&#8217;s accounting records;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 72.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#9675;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Evaluated the Company&#8217;s evidence supporting the amount of proved undeveloped properties reflected in the reserve report by
            examining support for the Company&#8217;s or the operator&#8217;s ability and intent to develop the proved undeveloped properties;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 72.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#9675;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Applied analytical procedures to the reserve report by comparing to historical actual results and to the prior year
            reserve report.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Revenue Recognition Based on the Percentage of Completion Method</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i><u>Critical Audit Matter Description</u></i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As described further in Note 1 to the financial statements, revenues derived from contract
      drilling contracts are recognized over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer, using the percentage-of-completion method of accounting, based primarily on contract cost incurred to
      date compared to total estimated contract cost. Revenue recognition under this method is judgmental, particularly on lump-sum contracts, as it requires the Company to prepare estimates of total contract revenue and total contract costs, including
      costs to complete in-process contracts.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Auditing the Company&#8217;s estimates or total contract revenue and costs used to recognize
      revenue on contract drilling contracts involved significant auditor judgment, as it required the evaluation of subjective factors such as assumptions related to project schedule and completion, forecasted labor, and material and subcontract costs.
      These assumptions involved significant management judgment, which affects the measurement of revenue recognized by the Company.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i><u>How the Critical Audit Matter was Addressed in the Audit</u></i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We obtained an understanding of the design and implementation of management&#8217;s controls and
      our audit procedures related to the estimation of proved reserves included the following, among others.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We obtained an understanding of the Company&#8217;s estimation process that affected revenue recognized on engineering and
            construction contracts. This included controls over management&#8217;s monitoring and review of project costs, including the Company&#8217;s procedures to validate the completeness and accuracy of data used to determine the estimates.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We selected a sample of projects and, among other procedures, obtained and inspected the contract agreements, amendments
            and change orders to test the existence of customer arrangements and understand the scope of pricing of the related contracts;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Evaluated the Company&#8217;s estimated revenue and costs to complete by obtaining and analyzing supporting documentation of
            management&#8217;s estimates of variable consideration and contract costs;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Compared contract profitability estimates in the current year to historical estimates and actual performance.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Calculation of Gain Associated with Sale of Oil and Gas Properties</font></p>
  <p style="font: italic bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i><u>Critical Audit Matter Description</u></i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As described further in Note 7 to the consolidated financial statements, the Company
      recorded a gain to the statement of operations from sale of certain oil and gas properties. Determination of the accounting for this transaction is challenging as it requires the Company to prepare significant assumptions and estimates regarding the
      associated fair value of the oil and gas reserves sold as compared to costs capitalized. The fair value estimate allows the Company to determine if the sale of the oil and gas assets are significant to the total full cost pool to record a gain on
      sale under the full cost method of accounting.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Auditing the Company&#8217;s estimates and assumptions used to calculate the fair value of the oil
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      assumptions used in the reserve reports prepared by a third party reserve engineer (the Company&#8217;s specialist). Further, such fair values determined by the Company&#8217;s specialist also determined the gain calculation under the full cost method of
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i><u>How the Critical Audit Matter was Addressed in the Audit</u></i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We obtained an understanding of the design and implementation of management&#8217;s controls and
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We evaluated the level of knowledge, skill, and ability of the Company&#8217;s reservoir engineering specialists and their
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      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Utilized the support of auditor&#8217;s specialists to recalculate independently of reserve engineer the fair value of oil and
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      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We evaluated management&#8217;s application of gain accounting under full cost method related to the sale of the oil and gas
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      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36.5pt; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Compared the calculation inputs for the gain recorded to the purchase and sale agreement.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">/s/ WEAVER AND TIDWELL, L.L.P.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">December 21, 2021</font></p>
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  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">64</font></div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES <br>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
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        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="6">September 30,</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
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        <td style="text-decoration: underline">ASSETS</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 10%; font-weight: bold; text-align: right">11,279,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
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        <td style="width: 10%; text-align: right">4,584,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="text-align: right">2,176,000</td>
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        <td style="font-weight: bold; text-align: right">530,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: right">472,000</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">687,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
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        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 0.125in">Accounts payable</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">1,416,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">2,104,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">909,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">542,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">1,073,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">408,000</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">1,171,000</td>
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        <td style="font-weight: bold; text-align: right">713,000</td>
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        <td>&#160;</td>
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        <td style="text-align: right">647,000</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">619,000</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">1,338,000</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">5,901,000</td>
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        <td>&#160;</td>
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        <td style="text-align: right">6,364,000</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">47,000</td>
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        <td>&#160;</td>
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        <td style="text-align: right">58,000</td>
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        <td style="font-weight: bold; text-align: right">180,000</td>
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        <td style="text-align: right">143,000</td>
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        <td style="font-weight: bold; text-align: right">2,101,000</td>
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        <td style="text-align: right">4,829,000</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; text-align: right">6,340,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="text-align: right">5,547,000</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">194,000</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">17,135,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td style="text-align: right">&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td style="font-weight: bold; text-align: right">4,807,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">4,590,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: right">1,350,000</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">2,356,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(3,897,000</td>
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        <td style="font-weight: bold; text-align: right">32,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(1,435,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(2,286,000</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(2,286,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">9,499,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(2,045,000</td>
        <td style="text-align: left">)</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">8,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">92,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,507,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(1,953,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">24,435,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">15,182,000</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"> <br>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">See Notes to Consolidated Financial Statements</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">65</font></div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES <br>
      CONSOLIDATED STATEMENTS OF OPERATIONS</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: -6.5pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="text-align: right">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
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        <td>&#160;</td>
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        <td>&#160;</td>
        <td>&#160;</td>
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        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 10%; font-weight: bold; text-align: right">10,254,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
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        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 10%; text-align: right">6,693,000</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">5,809,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">10,994,000</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">1,738,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">325,000</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">312,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">335,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">18,113,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">18,347,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 2.6pt">Costs and expenses:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">6,556,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">4,850,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 9.35pt">Contract drilling operating</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">5,555,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">7,513,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; text-align: right">7,088,000</td>
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        <td style="font-weight: bold; text-align: right">963,000</td>
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        <td style="text-align: right">2,147,000</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">668,000</td>
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        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">4,376,000</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">13,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">3,000</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(149,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 9.35pt">Gain on termination of post-retirement medical plan</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(2,341,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(1,982,000</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(1,336,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">16,371,000</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">23,373,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">1,742,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(5,026,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.6pt">Equity in income of affiliates</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">5,793,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">352,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">7,535,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(4,674,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.6pt">Income tax provision</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">332,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">3,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">7,203,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(4,677,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.6pt">Less: Net earnings attributable to non-controlling interests</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">950,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">79,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 2.6pt">Net earnings (loss) attributable to Barnwell Industries, Inc. stockholders</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,253,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(4,756,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 2.6pt">Basic net earnings (loss) per common share</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9.35pt">attributable to Barnwell Industries, Inc. stockholders</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.73</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(0.57</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td colspan="9">Diluted net earnings (loss) per common share</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9.35pt">attributable to Barnwell Industries, Inc. stockholders</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.73</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(0.57</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td colspan="9">Weighted-average number of common shares outstanding:</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-bottom: 2.5pt; padding-left: 20.6pt">Basic</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">8,592,154</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">8,277,160</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 2.5pt; padding-left: 20.6pt">Diluted</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">8,592,154</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">8,277,160</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">See Notes to Consolidated Financial Statements</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">66</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font: 10pt 'Times New Roman';">CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 51.8pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td>&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="6">Year ended September 30,</td>
        <td>&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 74%; text-align: left; padding-bottom: 1pt">Net earnings (loss)</td>
        <td style="width: 1%; font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td>
        <td style="width: 10%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">7,203,000</td>
        <td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; padding-bottom: 1pt">&#160;</td>
        <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td>
        <td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">(4,677,000</td>
        <td style="width: 1%; padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left">Other comprehensive income (loss):</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 0.125in">Foreign currency translation adjustments, net of taxes of $0</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(283,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(146,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 0.125in">Retirement plans:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-left: 0.25in">Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">101,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">120,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 0.25in">Net actuarial gain (loss) arising during the period, net of taxes of $0</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">1,108,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(218,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 0.25in">Curtailment gain, net of taxes of $0</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,726,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Gain on termination of post-retirement medical plan, net of taxes of $0</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">541,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.125in">Total other comprehensive income</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,467,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">1,482,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left">Total comprehensive income (loss)</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">8,670,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(3,195,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt">Less: Comprehensive income attributable to non-controlling interests</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(950,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(79,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt">Comprehensive income (loss) attributable to Barnwell Industries, Inc.</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">7,720,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(3,274,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font: 10pt 'Times New Roman';">See Notes to Consolidated Financial Statements</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">67</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;">&#160;<font style="font-family: 'Times New Roman'; font-size: 10pt;">BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES</font> </p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Years ended September 30, 2021 and 2020</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" border="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="text-align: center; vertical-align: bottom">
        <td style="width: 20%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black;" colspan="2">Shares<br>
          Outstanding</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black;" colspan="2">Common<br>
          Stock</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black;" colspan="2">Additional<br>
          Paid-In<br>
          Capital</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black;" colspan="2">Retained<br>
          Earnings<br>
          (Accumulated<br>
          Deficit)</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black;" colspan="2">Accumulated<br>
          Other<br>
          Comprehensive<br>
          Income (Loss)</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black;" colspan="2">Treasury<br>
          Stock</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black;" colspan="2">Non-<br>
          controlling<br>
          Interests</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black;" colspan="2">Total<br>
          Equity<br>
          (Deficit)</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 20%; font-weight: bold; padding-left: 2.6pt;">Balance at September 30, 2019</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 7%; text-align: right;">8,277,160</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 7%; text-align: right;">4,223,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 7%; text-align: right;">1,350,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 7%; text-align: right;">859,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 7%; text-align: right;">(2,917,000</td>
        <td style="width: 1%; text-align: left">)</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 7%; text-align: right;">(2,286,000</td>
        <td style="width: 1%; text-align: left">)</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 7%; text-align: right;">100,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 7%; text-align: right;">1,329,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 2.6pt; width: 20%;">Net (loss) earnings</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(4,756,000</td>
        <td style="text-align: left; width: 1%;">)</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">79,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(4,677,000</td>
        <td style="text-align: left; width: 1%;">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 2.6pt; width: 20%;">Foreign currency translation adjustments, net of taxes of $0</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(146,000</td>
        <td style="text-align: left; width: 1%;">)</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(146,000</td>
        <td style="text-align: left; width: 1%;">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 2.6pt; width: 20%;">Distributions to non-controlling interests</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(87,000</td>
        <td style="text-align: left; width: 1%;">)</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(87,000</td>
        <td style="text-align: left; width: 1%;">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 2.6pt; width: 20%;">Retirement plans:</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 9.35pt; width: 20%;">Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">120,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">120,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 9.35pt; width: 20%;">Net actuarial loss arising during the period, net of taxes of $0</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(218,000</td>
        <td style="text-align: left; width: 1%;">)</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(218,000</td>
        <td style="text-align: left; width: 1%;">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 8.6pt; width: 20%;">Curtailment gain, net of taxes of $0</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">1,726,000</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">1,726,000</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">8,277,160</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">4,223,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">1,350,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(3,897,000</td>
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(1,435,000</td>
        <td style="text-align: left; width: 1%;">)</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(2,286,000</td>
        <td style="text-align: left; width: 1%;">)</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">92,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(1,953,000</td>
        <td style="text-align: left; width: 1%;">)</td>
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">6,253,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">950,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">7,203,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 2.6pt; width: 20%;">Foreign currency translation adjustments, net of taxes of $0</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(283,000</td>
        <td style="text-align: left; width: 1%;">)</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(283,000</td>
        <td style="text-align: left; width: 1%;">)</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(1,034,000</td>
        <td style="text-align: left; width: 1%;">)</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">(1,034,000</td>
        <td style="text-align: left; width: 1%;">)</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">643,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">643,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">1,167,987</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">583,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">2,596,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">3,179,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">478</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">1,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">1,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">2,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">101,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">101,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
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        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">1,108,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">&#8212;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="width: 1%;">&#160;</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
        <td style="text-align: right; width: 7%;">1,108,000</td>
        <td style="text-align: left; width: 1%;">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt; width: 20%;">Gain on termination of post-retirement medical plan, net of taxes $0</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">541,000</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
        <td style="padding-bottom: 1pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; width: 7%;">541,000</td>
        <td style="padding-bottom: 1pt; text-align: left; width: 1%;">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="font-weight: bold; padding-bottom: 2.5pt; padding-left: 2.6pt; width: 20%;">Balance at September 30, 2021</td>
        <td style="padding-bottom: 2.5pt; width: 1%;">&#160;</td>
        <td style="padding-bottom: 2.5pt; text-align: left; width: 1%;">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; width: 7%;">9,445,625</td>
        <td style="padding-bottom: 2.5pt; text-align: left; width: 1%;">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; width: 1%;">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; width: 7%;">4,807,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; width: 1%;">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; width: 1%;">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; width: 7%;">4,590,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; width: 1%;">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; width: 1%;">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; width: 7%;">2,356,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; width: 1%;">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; width: 1%;">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; width: 7%;">32,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; width: 1%;">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; width: 1%;">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; width: 7%;">(2,286,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; width: 1%;">)</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; width: 1%;">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; width: 7%;">8,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; width: 1%;">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; width: 1%;">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; width: 1%;">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; width: 7%;">9,507,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; width: 1%;">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font: 10pt 'Times New Roman';">See Notes to Consolidated Financial Statements</font> <br>
  </p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font: 10pt 'Times New Roman';"> <br>
    </font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">68</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font: 10pt 'Times New Roman';">CONSOLIDATED STATEMENTS OF CASH FLOWS</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="text-align: right">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="6">Year ended September 30,</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 2.6pt">Cash flows from operating activities:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="width: 70%; text-align: left; padding-left: 9.35pt">Net earnings (loss)</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">7,203,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">(4,677,000</td>
        <td style="width: 1%; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 9.35pt">Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 26.6pt">Equity in income of affiliates</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(5,793,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(352,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 26.6pt">Depletion, depreciation, and amortization</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">963,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">2,147,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-left: 26.6pt">Impairment of assets</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">668,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">4,376,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 26.6pt">Gain on sale of oil and natural gas properties</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(818,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 26.6pt">Gain on sale of other assets</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(1,164,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(1,336,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 26.6pt">Sale of interest in leasehold land, net of fees paid</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(1,526,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(285,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 26.6pt">Distributions of income from equity investees</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">5,045,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">75,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 26.6pt">Retirement benefits income</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(88,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(60,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 26.6pt">Accretion of asset retirement obligation</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">580,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">561,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 26.6pt">Deferred income tax expense</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">165,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">26,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 26.6pt">Asset retirement obligation payments</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(421,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(498,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 26.6pt">Share-based compensation expense</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">643,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 26.6pt">Common stock issued for services</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">1,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 26.6pt">Non-cash rent (income) expense</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(4,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">48,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 26.6pt">Retirement plan contributions and payments</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(14,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(8,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 26.6pt">Bad debt expense</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">32,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">285,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 26.6pt">Gain on debt extinguishment</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(149,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 26.6pt">Gain on termination of post-retirement medical plan</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(2,341,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 26.6pt">(Decrease) increase from changes in current assets and liabilities</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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        <td style="text-align: right">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="text-align: left; padding-left: 2.6pt">Cash flows from financing activities:</td>
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        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">47,000</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; text-align: right">(1,034,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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      </tr>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">60,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt">Effect of exchange rate changes on cash and cash equivalents</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(14,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(6,000</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">6,695,000</td>
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        <td>&#160;</td>
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        <td style="text-align: right">(29,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">4,613,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt">Cash and cash equivalents at end of year</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">11,279,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">$</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">4,584,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font: 10pt 'Times New Roman';">See Notes to Consolidated Financial Statements</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">69</font></div>
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      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>BARNWELL INDUSTRIES, INC.</u></b></font><br>
    <font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>AND SUBSIDIARIES</u></b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS <br>
          YEARS ENDED SEPTEMBER 30, 2021 AND 2020</u></b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 35.25pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.</b></font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Description of Business</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell is engaged in the following lines of business: 1) acquiring,
      developing, producing and selling oil and natural gas in Canada and Oklahoma, 2) investing in land interests in Hawaii, and 3) drilling wells and installing and repairing water pumping systems in Hawaii.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Principles of Consolidation</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The consolidated financial statements include the accounts of Barnwell
      Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as &#8220;Barnwell,&#8221; &#8220;we,&#8221; &#8220;our,&#8221; &#8220;us,&#8221; or the &#8220;Company&#8221;), including a 77.6%-owned land investment general partnership (Kaupulehu Developments), a 75%-owned land
      investment partnership (KD Kona), and a variable interest entity (Teton Barnwell Fund I, LLC) for which the Company is deemed to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Undivided interests in oil and natural gas exploration and production
      joint ventures are consolidated on a proportionate basis. Barnwell&#8217;s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary
      beneficiary are accounted for by the equity method.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Use of Estimates in the Preparation of Consolidated Financial Statements</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The preparation of the consolidated financial statements in conformity
      with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ
      significantly from those estimates. Significant assumptions are required in the valuation of deferred tax assets, asset retirement obligations, share-based payment arrangements, obligations for retirement plans, contract drilling estimated costs to
      complete, proved oil and natural gas reserves, and the carrying value of other assets, and such assumptions may impact the amount at which such items are recorded.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Revenue Recognition</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell operates in and derives revenue from the following three principal business
      segments:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas Segment</i> - Barnwell engages in oil and natural gas development, production, acquisitions and sales
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      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Land Investment Segment</i> - Barnwell invests in land interests in Hawaii.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';">&#160;</p>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contract Drilling Segment</i> - Barnwell provides well drilling services and water pumping system installation and repairs
            in Hawaii.</font></td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">70</font></div>
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas </i>- Barnwell&#8217;s investments in oil and natural
      gas properties are located in Alberta, Canada and Oklahoma. These property interests are principally held under governmental leases or licenses. Barnwell sells the large majority of its oil, natural gas and natural gas liquids production under
      short-term contracts between itself and marketers based on prices indexed to market prices and recognizes revenue at a point in time when the oil, natural gas and natural gas liquids are delivered, as this is where Barnwell&#8217;s performance obligation
      is satisfied and title has passed to the customer.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Land Investment </i>- Barnwell is entitled to receive contingent
      residual payments from the entities that previously purchased Barnwell&#8217;s land investment interests under contracts entered into in prior years. The residual payments under those contracts become due when the entities sell lots and/or residential
      units in the areas that were previously sold under the aforementioned contracts or when a preferred payment threshold is achieved. The residual payments received by Barnwell are recognized as revenue when it is probable that a significant reversal in
      the amount of cumulative revenue recognized will not occur.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contract Drilling </i>- Through contracts which are normally less
      than twelve months in duration, Barnwell drills water and water monitoring wells and installs and repairs water pumping systems in Hawaii. Barnwell recognizes revenue from well drilling or the installation of pumps over time based on total costs
      incurred on the projects relative to the total expected costs to satisfy the performance obligation as management believes this is an accurate representation of the percentage of completion as control is continuously transferred to the customer.
      Uninstalled materials, which typically consists of well casing or pumps, are excluded in the costs-to-costs calculation for the duration of the contract as including these costs would result in a distortion of progress towards satisfaction of the
      performance obligation due to the resulting cumulative catch-up in margin in a single period. An equal amount of cost and revenue is recorded when uninstalled materials are controlled by the customer, which is typically when Barnwell has the right to
      payment for the materials and when the materials are delivered to the customer&#8217;s site or location and such materials have been accepted by the customer. Uninstalled materials are held in inventory and included in &#8220;Other current assets&#8221; on the
      Company&#8217;s Consolidated Balance Sheets until control is transferred to the customer. When the estimate on a contract indicates a loss, Barnwell records the entire estimated loss in the period the loss becomes known.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The contract price may include variable consideration, which includes
      such items as increases to the transaction price for unapproved change orders and claims for which price has not yet been agreed by the customer. The Company estimates variable consideration using either the most likely amount or expected value
      method, whichever is a more appropriate reflection of the amount to which it expects to be entitled based on the characteristics and circumstances of the contract. Variable consideration is included in the estimated transaction price to the extent it
      is probable that a significant reversal of cumulative recognized revenue will not occur.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Contract price and cost estimates are reviewed periodically as work
      progresses and adjustments proportionate to the costs incurred to date to total estimated costs at completion are reflected in contract revenues in the reporting period when such estimates are revised. The nature of accounting for these contracts is
      such that refinements of the estimated costs to complete may occur and are characteristic of the estimation process due to changing conditions and new developments. Many factors and assumptions can and do change during a contract performance
      obligation period which can result in a change to contract profitability including unforeseen underground geological conditions (to the extent that contract remedies are unavailable), the availability and costs of skilled contract labor, the
      performance of major material suppliers, the performance of major subcontractors, unusual weather conditions and unexpected changes in material costs, changes in the scope and nature of the work to be performed, and unexpected construction execution
      errors, among others. These factors may result in revisions to costs and income and are recognized in the period in which the revisions become known. Revenue and profit in future periods of contract performance are recognized using the adjusted
      estimate.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">71</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Management evaluates the performance of contracts on an individual
      basis. In the ordinary course of business, but at least quarterly, we prepare updated estimates that may impact the cost and profit or loss for each contract based on actual results to date plus management&#8217;s best estimate of costs to be incurred to
      complete each performance obligation. The cumulative effect of revisions in estimates of the total forecasted revenue and costs, including any unapproved change orders and claims, during the course of the contract is reflected in the accounting
      period in which the facts that caused the revision become known. Changes in the cost estimates can have a material impact on our consolidated financial statements and are reflected in the results of operations when they become known.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Unexpected significant inefficiencies that were not considered a risk at
      the time of entering into the contract, such as design or construction execution errors that result in significant wasted resources, are excluded from the measure of progress toward completion and the costs are expensed as incurred.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">To the extent a contract is deemed to have multiple performance
      obligations, the Company allocates the transaction price of the contract to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">When the Company receives consideration, or such consideration is
      unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results
      from billings in excess of costs and estimated earnings on uncompleted contracts. Contract liabilities are included in &#8220;Other current liabilities&#8221; on the Company&#8217;s Consolidated Balance Sheets. Costs and estimated earnings in excess of billings
      represent certain amounts under customer contracts that were earned and billable, but yet not invoiced, and are included in contract assets and reported in &#8220;Other current assets&#8221; on the Company&#8217;s Consolidated Balance Sheets.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Cash and Cash Equivalents</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Cash and cash equivalents include cash on hand and short-term
      investments with original maturities of three months or less.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Concentration of Credit Risk</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Financial instruments that potentially subject the Company to
      concentrations of credit risk consist primarily of cash and cash equivalents. We maintain bank account balances with high quality financial institutions which often exceed insured limits. We have not experienced any losses with these accounts and
      believe that we are not exposed to any significant credit risk on cash.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Accounts and Other Receivables</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Accounts receivable are recorded at the invoiced amount and do not bear interest. The
      allowance for doubtful accounts is Barnwell&#8217;s best estimate of the amount of probable credit losses in Barnwell&#8217;s existing accounts receivable and is based on historical write-off experience and the application of the specific identification method.
      Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Barnwell does not have any off-balance sheet credit exposure related to its customers.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">72</font></div>
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Investments in Real Estate</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell accounts for sales of Increment I and Increment II leasehold
      land interests under the full accrual method. Gains from such sales were recognized when the buyer&#8217;s investments were adequate to demonstrate a commitment to pay for the property, risks and rewards of ownership transferred to the buyer, and Barnwell
      did not have a substantial continuing involvement with the property sold. With regard to payments Kaupulehu Developments is entitled to receive from KD I and KD II, the percentage of sales payments from KD I and KD II and percentage of distributions
      from KD II are contingent future profits which will be recognized when they are realized. All costs of the sales of Increment I and Increment II leasehold land interests were recognized at the time of sale and were not deferred to future periods when
      any contingent profits will be recognized.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Variable Interest Entities</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The consolidation of VIEs is required when an enterprise has a
      controlling financial interest and is therefore the VIE&#8217;s primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE&#8217;s
      economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether an
      entity is a VIE and, if so, whether the Company is the primary beneficiary, may require significant judgment.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell analyzes its entities in which it has a variable interest to
      determine whether the entities are VIEs and, if so, whether the Company is the primary beneficiary. This analysis includes a qualitative review based on an evaluation of the design of the entity, its organizational structure, including decision
      making ability and financial agreements, as well as a quantitative review. Entities that have been determined to be VIEs and for which we have a controlling financial interest and are therefore the VIE&#8217;s primary beneficiary are consolidated (see Note
      5). Entities that have been determined to be VIEs and for which we do not have a controlling financial interest and are therefore not the VIE&#8217;s primary beneficiary are not consolidated. These unconsolidated entities are accounted for under the equity
      method (see Note 4).</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Equity Method Investments</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Affiliated companies, which are limited partnerships or similar
      entities, in which Barnwell holds more than a 3% to 5% ownership interest and does not control, are accounted for as equity method investments. Equity method investment adjustments include Barnwell&#8217;s proportionate share of investee income or loss,
      adjustments to recognize certain differences between Barnwell&#8217;s carrying value and Barnwell&#8217;s equity in net assets of the investee at the date of investment, impairments and other adjustments required by the equity method. Gains or losses are
      realized when such investments are sold. Barnwell classifies distributions received from equity method investments using the cumulative earnings approach in the Consolidated Statements of Cash Flows. Under the cumulative earnings approach,
      distributions received up to the amount of cumulative equity in earnings recognized are treated as returns on investment and are classified within operating cash flows and those in excess of that amount are treated as returns of investment and are
      classified within investing cash flows.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">73</font></div>
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Investments in equity method investees are evaluated for impairment as
      events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amounts of the assets exceed their respective fair values, additional impairment tests are performed to measure the amounts of
      the impairment losses, if any. When an impairment test demonstrates that the fair value of an investment is less than its carrying value, management will determine whether the impairment is either temporary or other-than-temporary. Examples of
      factors which may be indicative of an other-than-temporary impairment include (a) the length of time and extent to which fair value has been less than carrying value, (b) the financial condition and near-term prospects of the investee, and (c) the
      intent and ability to retain the investment in the investee for a period of time sufficient to allow for any anticipated recovery in fair value. If the decline in fair value is determined by management to be other-than-temporary, the carrying value
      of the investment is written down to its estimated fair value as of the balance sheet date of the reporting period in which the assessment is made.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Oil and Natural Gas Properties</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell uses the full cost method of accounting under which all costs
      incurred in the acquisition, exploration and development of oil and natural gas reserves, including costs related to unsuccessful wells and estimated future site restoration and abandonment, are capitalized. We capitalize internal costs that can be
      directly identified with our acquisition, exploration and development activities and do not include any costs related to production, general corporate overhead or similar activities.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The capitalized costs of oil and gas properties, excluding unevaluated
      and unproved properties, are amortized as depreciation, depletion and amortization expense using the units-of-production method based on estimated proved recoverable oil and gas reserves.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Costs associated with unevaluated and unproved properties, initially
      excluded from the amortization base, relate to unproved leasehold acreage, wells and production facilities in progress and wells pending determination of the existence of proved reserves. Unproved leasehold costs are transferred to the amortization
      base with the costs of drilling the related well once a determination of the existence of proved reserves has been made or upon impairment of a lease. Costs associated with wells in progress and completed wells that have yet to be evaluated are
      transferred to the amortization base once a determination is made whether or not proved reserves can be assigned to the property. Costs of dry wells are transferred to the amortization base immediately upon determination that the well is
      unsuccessful.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">All items classified as unevaluated and unproved properties are assessed
      on a quarterly basis for possible impairment or reduction in value. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but
      not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During
      any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to
      amortization.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">74</font></div>
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Under the full cost method of accounting, we review the carrying value of
      our oil and natural gas properties, on a country-by-country basis, each quarter in what is commonly referred to as the ceiling test. Under the ceiling test, capitalized costs, net of accumulated depletion and oil and natural gas related deferred
      income taxes, may not exceed an amount equal to the sum of 1) the discounted present value (at 10%), using average first-day-of-the-month prices during the 12-month period ending as of the balance sheet date held constant over the life of the
      reserves, of Barnwell&#8217;s estimated future net cash flows from estimated production of proved oil and natural gas reserves as determined by independent petroleum reserve engineers, less estimated future expenditures to be incurred in developing and
      producing the proved reserves but excluding future cash outflows associated with settling asset retirement obligations with the exception of those associated with proved undeveloped reserves from wells that are to be drilled in the future; plus 2)
      the cost of major development projects and unproven properties not subject to depletion, if any; plus 3) the lower of cost or estimated fair value of unproven properties included in costs subject to depletion; less 4) related income tax effects. If
      net capitalized costs exceed this limit, the excess is expensed. Depletion is computed using the units-of-production method whereby capitalized costs, net of estimated salvage values, plus estimated future costs to develop proved reserves and satisfy
      asset retirement obligations, are amortized over the total estimated proved reserves on a country-by-country basis. Investments in major development projects are not depleted until either proved reserves are associated with the projects or impairment
      has been determined. Proceeds from the disposition of oil and natural gas properties are credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the
      proved reserves in a particular country.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Given the volatility of oil and gas prices, it is reasonably possible
      that the estimate of discounted future net cash flows from proved oil and gas reserves could change in the near term. If oil and gas prices decline in the future, even if only for a short period of time, it is possible that impairments of oil and gas
      properties could occur. In addition, it is reasonably possible that impairments could occur if costs are incurred in excess of any increases in the present value of future net cash flows from proved oil and gas reserves, or if properties are sold for
      proceeds less than the discounted present value of the related proved oil and gas reserves.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s sales reflect its working interest share after royalties.
      Barnwell&#8217;s production is generally delivered and sold at the plant gate. Barnwell does not have transportation volume commitments with pipelines and does not have natural gas imbalances related to natural gas balancing arrangements with its partners.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Acquisitions</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In accordance with the guidance for business combinations, Barnwell
      determines whether an acquisition is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method of accounting. If
      the assets acquired are not a business, the Company accounts for the transaction as an asset acquisition. Under both methods purchase prices are allocated to acquired assets and assumed liabilities based on their estimated fair value at the time of
      the acquisition. For transactions that are business combinations, the Company evaluates the existence of goodwill or a gain from a bargain purchase. The Company capitalizes acquisition-related costs and fees associated with asset acquisitions and
      immediately expenses acquisition-related costs and fees associated with business combinations.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Long-lived Assets</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Long-lived assets to be held and used, other than oil and natural gas properties, are
      evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. Recoverability is measured by comparing the carrying amount of the asset to the future net cash flows
      expected to result from use of the asset (undiscounted and without interest charges). If it is determined that the asset may not be recoverable, impairment loss is measured as the amount by which the carrying amount of the asset exceeds the fair
      value of the asset. Long-lived assets to be disposed of are reported at the lower of the asset carrying value or fair value, less cost to sell.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"> </p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Water well drilling rigs, office and other property and equipment are
      depreciated using the straight-line method based on estimated useful lives.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"> <br>
    </font></p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">75</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Share-based Compensation</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Share-based compensation cost is measured at fair value. Barnwell
      utilizes a closed-form valuation model to determine the fair value of each option award. Expected volatilities are based on the historical volatility of Barnwell&#8217;s stock over a period consistent with that of the expected terms of the options. The
      expected terms of the options represent expectations of future employee exercise and are estimated based on factors such as vesting periods, contractual expiration dates, historical trends in Barnwell&#8217;s stock price, and historical exercise behavior.
      If the Company does not have sufficient historical data regarding employee exercise behavior, the &#8220;simplified method&#8221; as permitted by the SEC&#8217;s Staff Accounting Bulletin No. 110, <i>Share-Based Payment</i> is utilized to estimate the expected terms
      of the options. The risk-free rates for periods within the contractual life of the options are based on the yields of U.S. Treasury instruments with terms comparable to the estimated option terms. Expected dividends are based on current and
      historical dividend payments. The Company&#8217;s policy is to recognize forfeitures as they occur.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Retirement Plans</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell accounts for its defined benefit pension plan, Supplemental
      Executive Retirement Plan, and post-retirement medical insurance benefits plan, which was terminated in June 2021, by recognizing the over-funded or under-funded status as an asset or liability in its Consolidated Balance Sheets and recognizes
      changes in that funded status in the year in which the changes occur through comprehensive income. See further discussion at Note 9.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The estimation of Barnwell&#8217;s retirement plan obligations, costs and
      liabilities requires management to estimate the amount and timing of cash outflows for projected future payments and cash inflows for maturities and expected returns on plan assets. These assumptions may have an effect on the amount and timing of
      future contributions.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">At the end of each year, Barnwell determines the discount rate to be
      used to calculate the present value of plan liabilities and the net periodic benefit cost. The discount rate is an estimate of the current interest rate at which the retirement plan liabilities could be effectively settled at the end of the year. In
      estimating this rate, Barnwell performs a cash-flow matching discount rate analysis developed using high-quality corporate bonds yield. The discount rate used to value the future benefit obligation as of each year-end is the rate used to determine
      the periodic benefit cost in the following year.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The expected long-term return on assets assumption for the pension plans
      represents the average rate of return to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. The actual fair value of plan assets and estimated rate of return is used to determine the expected
      investment return during the year. The estimated rate of return on plan assets is based on an estimate of future experience for plan asset returns, the mix of plan assets, current market conditions, and expectations for future market conditions. A
      decrease (increase) of 50 basis points in the expected return on assets assumption would increase (decrease) pension expense by approximately $62,000 based on the assets of the plan at September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">76</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The effects of changing assumptions are included in unamortized net
      gains and losses, which directly affect accumulated other comprehensive income. These unamortized gains and losses in excess of certain thresholds are amortized and reclassified to (loss) income over the average remaining service life of active
      employees.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Asset Retirement Obligation</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell accounts for asset retirement obligations by recognizing the
      fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. Barnwell estimates the fair value of asset retirement obligations based on the projected discounted
      future cash outflows required to settle abandonment and restoration liabilities. Such an estimate requires assumptions and judgments regarding the existence of liabilities, the amount and timing of cash outflows required to settle the liability, what
      constitutes adequate restoration, inflation factors, credit adjusted discount rates, and consideration of changes in legal, regulatory, environmental and political environments. Abandonment and restoration cost estimates are determined in conjunction
      with Barnwell&#8217;s reserve engineers based on historical information regarding costs incurred to abandon and restore similar well sites, information regarding current market conditions and costs, and knowledge of subject well sites and properties. These
      assumptions represent Level 3 inputs.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s estimated site restoration and abandonment costs of its oil
      and natural gas properties are capitalized as part of the carrying amount of oil and natural gas properties and depleted over the life of the related reserves. When the assumptions used to estimate a recorded asset retirement obligation change, a
      revision is recorded to both the asset retirement obligation and the capitalized cost of asset retirements. The liability is accreted at the end of each period through charges to oil and natural gas operating expense.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Income Taxes</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Income taxes are determined using the asset and liability method.
      Deferred tax assets and liabilities are recognized for the estimated future tax impacts of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and
      liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
      in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax asset will not be realized.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Management evaluates its potential exposures from tax positions taken
      that have been or could be challenged by taxing authorities. These potential exposures result because taxing authorities may take positions that differ from those taken by management in the interpretation and application of statutes, regulations and
      rules. Management considers the possibility of alternative outcomes based upon past experience, previous actions by taxing authorities (e.g., actions taken in other jurisdictions) and advice from tax experts. Recognized tax positions are initially
      and subsequently measured as the largest amount of tax benefit that is more likely than not of being realized upon ultimate settlement with a taxing authority on a jurisdiction-by-jurisdiction basis. Liabilities for unrecognized tax benefits related
      to such tax positions are included in long-term liabilities unless the tax position is expected to be settled within the upcoming year, in which case the liabilities are included in current liabilities. Interest and penalties related to uncertain tax
      positions are included in income tax expense.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
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    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">77</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Environmental</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell is subject to extensive environmental laws and regulations.
      These laws, which are constantly changing, regulate the discharge of materials into the environment and maintenance of surface conditions and may require Barnwell to remove or mitigate the environmental effects of the disposal or release of petroleum
      or chemical substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic
      benefit are expensed. Liabilities for expenditures of a noncapital nature are recorded when environmental assessment and/or remediation is probable, and the costs can be reasonably estimated.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell recognizes an insurance receivable related to environmental
      expenditures when collection of the receivable is deemed probable. Any recognition of an insurance receivable is recorded by crediting and offsetting the original charge. Any differential arising between insurance recoveries and insurance receivables
      is expensed or capitalized, consistent with the original treatment.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Foreign Currency Translation</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Assets and liabilities of foreign subsidiaries are translated at the
      year-end exchange rate. Operating results of foreign subsidiaries are translated at average exchange rates during the period. Translation adjustments have no effect on net income and are included in &#8220;Accumulated other comprehensive income (loss),
      net&#8221; in stockholders&#8217; equity.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Fair Value Measurements</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Fair value is defined as the amount that would be received from the sale
      of an asset or paid for the transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities in active markets and have the
            highest priority.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
            directly or indirectly.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 0.5in; font: 10pt 'Times New Roman';"></td>
        <td style="width: 18pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8226;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Level 3: Unobservable inputs for the financial asset or liability and have the lowest priority.</font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Recently Adopted Accounting Pronouncements</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In August 2018, the FASB issued ASU No. 2018-13, &#8220;Fair Value
      Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,&#8221; which provides changes to certain fair value disclosure requirements. The Company adopted the provisions of this ASU effective October 1, 2020. The
      adoption of this update did not have an impact on Barnwell&#8217;s consolidated financial statements.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 36pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In August 2018, the FASB issued ASU No. 2018-14, &#8220;Compensation -
      Retirement Benefits-Defined Benefit Plans - General: Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans,&#8221; which provides changes to certain pension and postretirement plan disclosures. The Company adopted the
      provisions of this ASU effective October 1, 2020. The adoption of this update did not have an impact on Barnwell&#8217;s consolidated financial statements.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">78</font></div>
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      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In October 2018, the FASB issued ASU No. 2018-17, &#8220;Consolidation:
      Targeted Improvements to Related Party Guidance for Variable Interest Entities,&#8221; which modifies the guidance related to indirect interests held through related parties under common control for determining whether fees paid to decision makers and
      service providers are variable interest. The Company adopted the provisions of this ASU effective October 1, 2020. The adoption of this update did not have an impact on Barnwell&#8217;s consolidated financial statements.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 35.25pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>2.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>GOING CONCERN</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The accompanying consolidated financial statements have been prepared on
      a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business for the twelve-month period following the date of issuance of these consolidated financial statements.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Our ability to sustain our business in the future will depend on the
      sufficiency of our cash on hand, oil and natural gas operating cash flows, which are highly sensitive to volatile oil and natural gas prices, contract drilling operating cash flows, which are subject to large changes in demand, and future land
      investment segment proceeds and distributions from the Kukio Resort Land Development Partnerships, the timing of which are both highly uncertain and not within Barnwell&#8217;s control. A sufficient level of such cash and cash inflows are necessary to fund
      discretionary oil and natural gas capital expenditures, which must be economically successful to provide sufficient returns, as well as fund our non-discretionary outflows such as oil and natural gas asset retirement obligations and ongoing operating
      and general and administrative expenses. In addition, as discussed in the &#8220;Asset Retirement Obligation&#8221; section of &#8220;Liquidity and Capital Resources,&#8221; a significant amount of funds will be required to be put on deposit with Canadian regulatory
      authorities to fund abandonments at the Company&#8217;s oil and natural gas properties in the Manyberries area. Other sources and potential sources of funding are discussed below.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2020, the Company listed its corporate office on the 29th
      floor of a commercial office building in downtown Honolulu, Hawaii for sale and on September 30, 2021, the Company&#8217;s Honolulu corporate office was sold for approximately $1,864,000, net of related costs.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On March 16, 2021, the Company initiated an at-the-market offering
      program (&#8220;ATM&#8221;) pursuant to which the Company may offer and sell, from time to time, shares of its common stock under price and volume guidelines set by the Company&#8217;s Board of Directors and the terms and conditions described in the Registration
      Statement. The sale of shares under the ATM began in May 2021 and as of September 30, 2021, the Company sold 1,167,987 shares of common stock resulting in net proceeds of $3,784,000 after commissions and fees of $123,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In April 2021, the Company re-initiated the marketing of its non-core oil
      and natural gas properties in the Spirit River, Wood River, Medicine River, Kaybob, Bonanza, Balsam and Thornbury areas for sale. On July 8, 2021, Barnwell entered into and completed a purchase and sale agreement with an independent third party and
      sold its interests in certain natural gas and oil properties located in the Spirit River area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $1,047,000 in order to, among other things,
      reflect an economic effective closing date of sale of July 8, 2021. From Barnwell&#8217;s net proceeds, $526,000 was withheld for remittance by the buyers to the Canada Revenue Agency for potential amounts due for Barnwell&#8217;s Canadian income taxes related
      to the sale. Negotiations regarding the potential sales of other non-core oil and natural gas properties is ongoing, however there is no assurance that the sale of any of the other non-core properties will occur.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">79</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We have experienced a trend of losses and negative operating cash flows
      in three of the last four years. During fiscal 2020 and 2021, continuing uncertainties regarding the impacts of the COVID-19 pandemic on our business and the sufficiency of our cash balances and future cash inflows as described above raised
      substantial doubt about our ability to meet our estimated cash outflows or continue as a going concern. However, due to the $3,784,000 of net proceeds raised by the ATM through September 30, 2021, the proceeds received from the sale of the Company&#8217;s
      corporate office and its interests in certain natural gas and oil properties in the Spirit River area, as well as the $7,156,000 of net cash inflows in the year ended September 30, 2021 from land segment percentage of sales proceeds and distributions
      from the Kukio Resort Land Development Partnerships, substantial doubt about our ability to meet our estimated cash outflows or continue as a going concern for one year from the date of the filing of this report has been overcome.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 35.25pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>3.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>EARNINGS (LOSS) PER COMMON SHARE</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Basic earnings (loss) per share is computed using the weighted-average
      number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated using the treasury stock method to reflect the assumed issuance of common shares for all potentially dilutive securities, which consist of outstanding
      stock options. Potentially dilutive shares are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Options to purchase 615,000 shares were excluded from the computation of
      diluted shares for the year ended September 30, 2021, as their inclusion would have been antidilutive. There were no options outstanding at September 30, 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Reconciliations between net earnings (loss) attributable to Barnwell
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="text-align: center; vertical-align: bottom">
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">Net Earnings</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">Shares</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">Per-Share</td>
        <td>&#160;</td>
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        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">(Numerator)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">(Denominator)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">Amount</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
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        <td style="width: 55%; padding-bottom: 2.5pt; padding-left: 2.6pt">Basic net earnings per share</td>
        <td style="width: 1%; font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">6,253,000</td>
        <td style="width: 1%; padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 12%; font-weight: bold; text-align: right">8,592,154</td>
        <td style="width: 1%; padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="width: 1%; border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.73</td>
        <td style="width: 1%; padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.6pt">Effect of dilutive securities - common stock options</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 2.5pt; padding-left: 2.6pt">Diluted net earnings per share</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,253,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">8,592,154</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">0.73</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="10">Year ended September 30, 2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="text-align: center; vertical-align: bottom">
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">Net Loss</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">Shares</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">Per-Share</td>
        <td>&#160;</td>
      </tr>
      <tr style="text-align: center; vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">(Denominator)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">Amount</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
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        <td style="width: 55%; padding-bottom: 2.5pt; padding-left: 2.6pt">Basic net loss per share</td>
        <td style="width: 1%; padding-bottom: 2.5pt">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">(4,756,000</td>
        <td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td>
        <td style="width: 1%; padding-bottom: 2.5pt">&#160;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 12%; text-align: right">8,277,160</td>
        <td style="width: 1%; padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="width: 1%; padding-bottom: 2.5pt">&#160;</td>
        <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="width: 12%; border-bottom: Black 2.5pt double; text-align: right">(0.57</td>
        <td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.6pt">Effect of dilutive securities - common stock options</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 2.5pt; padding-left: 2.6pt">Diluted net loss per share</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(4,756,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">8,277,160</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(0.57</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">80</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 33.75pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>4.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>INVESTMENTS</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Investment in Kukio Resort Land Development Partnerships</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On November 27, 2013, Barnwell, through a wholly-owned subsidiary,
      entered into two limited liability limited partnerships, KD Kona and KKM, and indirectly acquired a 19.6% non-controlling ownership interest in each of KD Kukio Resorts, KD Maniniowali, and KDK for $5,140,000. The Kukio Resort Land Development
      Partnerships own certain real estate and development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast of the island of Hawaii, as well as Kukio Resort&#8217;s real estate
      sales office operations. KDK holds interests in KD I and KD II. KD I is the developer of Increment I and KD II is the developer of Increment II. Barnwell&#8217;s ownership interests in the Kukio Resort Land Development Partnerships is accounted for using
      the equity method of accounting. The partnerships derive income from the sale of residential parcels as well as from commissions on real estate sales by the real estate sales office. Two ocean front parcels approximately two to three acres in size
      fronting the ocean were developed within Increment II by KD II, of which one was sold in fiscal 2017 and one was sold in fiscal 2016. The remaining acreage within Increment II is not yet under development, and there is no assurance that development
      of such acreage will in fact occur. No definitive development plans have been made by the developer of Increment II as of the date of this report.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 39.05pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In March 2019, KD II admitted a new development partner, Replay, a
      party unrelated to Barnwell, in an effort to move forward with development of the remainder of Increment II at Kaupulehu. KDK and Replay hold ownership interests of 55% and 45%, respectively, of KD II and Barnwell has a 10.8% indirect non-controlling
      ownership interest in KD II through KDK, which is accounted for using the equity method of accounting. Barnwell continues to have an indirect 19.6% non-controlling ownership interest in KD Kukio Resorts, KD Maniniowali, and KD I.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 39.05pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell has the right to receive distributions from the Kukio Resort
      Land Development Partnerships via its non-controlling interests in KD Kona and KKM, based on its respective partnership sharing ratios of 75% and 34.45%, respectively. Additionally, Barnwell was entitled to a preferred return from KKM on any
      allocated equity in income of the Kukio Resort Land Development Partnerships in excess of its partnership sharing ratio for cumulative distributions to all of its partners in excess of $45,000,000 from those partnerships. Cumulative distributions
      from the Kukio Resort Land Development Partnerships have reached the $45,000,000 threshold and in the quarter ended December 31, 2020, the Kukio Resort Land Development Partnerships made distributions in excess of the threshold out of the proceeds
      from the sale of two lots in Increment I. Accordingly, Barnwell received a total of $459,000 in preferred return payments, which is reflected as an additional equity pickup in the &#8220;Equity in income of affiliates&#8221; line item on the accompanying
      Consolidated Statement of Operations for the year ended September 30, 2021. The preferred return payments received in the quarter ended December 30, 2020, brought the cumulative preferred return total to $656,000, which is the total amount Barnwell
      was entitled to, and thus there is no more preferred return outstanding as of September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the year ended September 30, 2021, Barnwell received net cash
      distributions in the amount of $6,011,000 from the Kukio Resort Land Development Partnerships after distributing $683,000 to non-controlling interests. Of the $6,011,000 net cash distribution received from the Kukio Resort Land Development
      Partnerships, $459,000 represented a payment of the preferred return from KKM, as discussed above. During the year ended September 30, 2020, Barnwell received net cash distributions in the amount of $360,000 from the Kukio Resort Land Development
      Partnerships after distributing $20,000 to non-controlling interests. Of the $360,000 net cash distribution received from the Kukio Resort Land Development Partnerships, $197,000 represented a payment of the preferred return from KKM.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">81</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 39.7pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s share of the operating results of its equity affiliates was
      income of $5,793,000, which includes the $459,000 payment of the preferred return from KKM discussed above, for the year ended September 30, 2021, as compared to income of $352,000, which includes a preferred return payment of $197,000 from KKM, for
      the year ended September 30, 2020. The equity in the underlying net assets of the Kukio Resort Land Development Partnerships exceeds the carrying value of the investment in affiliates by approximately $138,000 as of September 30, 2021, which is
      attributable to differences in the value of capitalized development costs and a note receivable. The basis difference will be recognized as the partnerships sell lots and recognize the associated costs and sell memberships for the Kuki`o Golf and
      Beach Club for which the receivable relates. The basis difference adjustments of $146,000 and $13,000, for the years ended September 30, 2021 and 2020, respectively, increased equity in income of affiliates.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Summarized financial information for the Kukio Resort Land Development
      Partnerships is as follows:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="6">Year ended September 30,</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
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        <td style="width: 70%; padding-left: 2.6pt">Revenue</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">43,013,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">7,911,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 2.6pt">Gross profit</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">24,759,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">4,071,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 2.6pt">Net earnings</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">20,612,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">618,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the year ended September 30, 2021, the Company received
      cumulative distributions from the Kukio Resort Land Development Partnerships in excess of our investment balance and in accordance with applicable accounting guidance, the Company suspended its equity method earnings recognition and reduced its Kukio
      Resort Land Development Partnership investment balance to zero as of September 30, 2021. In addition, the Company recorded the distributions received in excess of our investment balance of $654,000 as equity in income of affiliates during the year
      ended September 30, 2021. The Company records the distributions in excess of our investment in the Kukio Resort Land Development Partnerships as income because the distributions are not refundable by agreement or by law and the Company is not liable
      for the obligations of or otherwise committed to provide financial support to the Kukio Resort Land Development Partnerships. The Company will record future equity method earnings only after our share of the Kukio Resort Land Development
      Partnership&#8217;s cumulative earnings during the suspended period exceeds our share of the Kukio Resort Land Development Partnership&#8217;s income recognized for the excess distributions.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">At September 30, 2020, the Company&#8217;s investment in the Kukio Resort Land
      Development Partnerships was $901,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Sale of Interest in Leasehold Land</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Kaupulehu Developments has the right to receive payments from KD I and
      KD II resulting from the sale of lots and/or residential units within Increment I and Increment II by KD I and KD II (see Note 20).</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">With respect to Increment I, Kaupulehu Developments is entitled to
      receive payments from KD I based on the following percentages of the gross receipts from KD I&#8217;s sales of single-family residential lots in Increment I: 10% of such aggregate gross proceeds greater than $100,000,000 up to $300,000,000; and 14% of such
      aggregate gross proceeds in excess of $300,000,000. In fiscal 2021, eight single-family lots in Increment I were sold bringing the total amount of gross proceeds from single-family lot sales through September 30, 2021 to $237,038,000. As of September
      30, 2021, nine single-family lots, of the 80 lots developed within Increment I, remained to be sold.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">82</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Under the terms of the Increment II agreement with KD II, Kaupulehu
      Developments is entitled to 15% of the distributions of KD II, the cost of which is to be solely borne by KDK out of its 55% ownership interest in KD II, plus a priority payout of 10% of KDK&#8217;s cumulative net profits derived from Increment II sales
      subsequent to Phase 2A, up to a maximum of $3,000,000 as to the priority payout. Such interests are limited to distributions or net profits interests and Barnwell does not have any partnership interests in KD II or KDK through its interest in
      Kaupulehu Developments. The arrangement also gives Barnwell rights to three single-family residential lots in Phase 2A of Increment II, and four single-family residential lots in phases subsequent to Phase 2A when such lots are developed by KD II,
      all at no cost to Barnwell. Barnwell is committed to commence construction of improvements within 90 days of the transfer of the four lots in the phases subsequent to Phase 2A as a condition of the transfer of such lots. Also, in addition to
      Barnwell&#8217;s existing obligations to pay professional fees to certain parties based on percentages of its gross receipts, Kaupulehu Developments is also obligated to pay an amount equal to 0.72% and 0.20% of the cumulative net profits of KD II to KD
      Development and a pool of various individuals, respectively, all of whom are partners of KKM and are unrelated to Barnwell, in compensation for the agreement of these parties to admit the new development partner for Increment II. Such compensation
      will be reflected as the obligation becomes probable and the amount of the obligation can be reasonably estimated.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following table summarizes the Increment I revenues from KD I and
      the amount of fees directly related to such revenues (see Note 18 &#8220;Commitments and Contingencies - Other Matters&#8221;):</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="6">Year ended September 30,</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td>Sale of interest in leasehold land:</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="width: 70%; text-align: left; padding-left: 0.125in">Revenues - sale of interest in leasehold land</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">1,738,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">325,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 0.125in">Fees - included in general and administrative expenses</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">(212,000</td>
        <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: right; border-bottom: Black 1pt solid">(40,000</td>
        <td style="text-align: left; padding-bottom: 1pt">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 0.25in">Sale of interest in leasehold land, net of fees paid</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">$</td>
        <td style="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double">1,526,000</td>
        <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="text-align: left; border-bottom: Black 2.5pt double">$</td>
        <td style="text-align: right; border-bottom: Black 2.5pt double">285,000</td>
        <td style="text-align: left; padding-bottom: 2.5pt">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font: 10pt 'Times New Roman';">There is no assurance with regards to the amounts of future payments from Increment I or
      Increment II to be received, or that the remaining acreage within Increment II will be developed. No definitive development plans have been made by the developer of Increment II as of the date of this report.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Investment in Leasehold Land Interest &#8211; Lot 4C</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Kaupulehu Developments holds an interest in an area of approximately
      1,000 acres of vacant leasehold land zoned conservation located adjacent to Lot 4A, which currently has no development potential without both a development agreement with the lessor and zoning reclassification. The lease terminates in December 2025.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In the year ended September 30, 2020, the Company recorded a $50,000
      impairment in the carrying value of its investment in leasehold land interest in Lot 4C as a result of the uncertainty regarding the timing of future development and potential use of water rights within Lot 4C prior to the expiration of the lease
      term.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">83</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>5.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>CONSOLIDATED VARIABLE INTEREST ENTITY</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In February 2021, Barnwell Industries, Inc. established a new
      wholly-owned subsidiary named BOK Drilling, LLC (&#8220;BOK&#8221;) for the purpose of indirectly investing in oil and natural gas exploration and development in Oklahoma. BOK and Gros Ventre Partners, LLC (&#8220;Gros Ventre&#8221;), an entity affiliated with the Company,
      entered into the Limited Liability Agreement (the &#8220;Agreement&#8221;) of Teton Barnwell Fund I, LLC (&#8220;Teton Barnwell&#8221;), an entity formed for the purpose of directly entering into such oil and natural gas investments. Under the terms of the Agreement, the
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      Barnwell as compensation for its management services. BOK is responsible for 100% of the capital contributions made to Teton Barnwell and as of September 30, 2021, the Company made a total of $750,000 in capital contributions to Teton Barnwell to
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      structured with non-substantive voting rights and that the Company is the primary beneficiary. This is due to the fact that even though Teton Barnwell has a unanimous consent voting structure, BOK is responsible for 100% of the capital contributions
      required to fund Teton Barnwell&#8217;s future oil exploration and development investments pursuant to the Agreement and thus, BOK has the power to steer the decisions that most significantly impact Teton Barnwell&#8217;s economic performance and has the
      obligation to absorb any potential losses that could be significant to Teton Barnwell. As BOK is the primary beneficiary of the VIE, Teton Barnwell&#8217;s operating results, assets and liabilities are consolidated by the Company.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Mr. Colin R. O&#8217;Farrell, a member of the Board of Directors of the
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      Barnwell&#8217;s operating results, assets and liabilities as discussed above.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following table summarizes the carrying value of the assets and
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center" colspan="2">September 30,<br>
          &#160;2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td style="text-decoration: underline">ASSETS</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 85%; text-align: left">Cash and cash equivalents</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">136,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left">Accounts and other receivables</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">118,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left">Oil and natural gas properties, full cost method of accounting:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 14.6pt">Proved properties, net</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">203,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 14.6pt">Unproved properties</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">962,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 37.85pt">Total assets</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,419,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td><u>LIABILITIES</u></td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td colspan="2">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 85%; text-align: left">Accounts payable</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">3,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left">Accrued capital expenditures</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">581,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt">Accrued operating and other expenses</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">20,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 37.85pt">Total liabilities</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">604,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">84</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 36pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>6.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>ASSETS HELD FOR SALE</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Honolulu Corporate Office</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company&#8217;s Honolulu corporate office was designated as an asset held
      for sale and the carrying value in the aggregate amount of $699,000 was included in &#8220;Asset held for sale&#8221; on the Company&#8217;s Consolidated Balance Sheet at September 30, 2020. On September 30, 2021, the Company&#8217;s Honolulu corporate office was sold for
      approximately $1,864,000, net of related costs, resulting in a gain of $1,164,000, which was recognized in the year ended September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contract Segment Drilling Rig and Equipment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In September 2021, the Company designated a contract drilling segment
      drilling rig and related ancillary equipment, with an aggregate net carrying value of $725,000, as assets held for sale and recorded an impairment of $38,000 to reduce the value of these assets to its fair value, less estimated selling costs. The
      fair value of these assets in the aggregate amount of $687,000 is recorded as &#8220;Assets held for sale&#8221; on the Company&#8217;s Consolidated Balance Sheet at September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 35.25pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>7.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>OIL AND NATURAL GAS PROPERTIES</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Dispositions</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In April 2021, Barnwell entered into a purchase and sale agreement with
      an independent third party and sold its interests in properties located in the Hillsdown area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $132,000 in order to, among other things,
      reflect an economic effective date of October 1, 2020. $72,000 of the sales proceeds was withheld by the buyers for potential amounts due for Barnwell&#8217;s Canadian income taxes related to the sale. The final determination of the customary adjustments
      to the purchase price has not yet been made, however it is not expected to result in a material adjustment. The proceeds were credited to the full cost pool, with no gain or loss recognized, as the sale did not result in a significant alteration of
      the relationship between capitalized costs and proved reserves.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On July 8, 2021, Barnwell entered into and completed a purchase and sale
      agreement with an independent third party and sold its interests in certain natural gas and oil properties located in the Spirit River area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to
      $1,047,000 in order to, among other things, reflect an economic effective closing date of sale of July 8, 2021. From Barnwell&#8217;s net proceeds, $526,000 was withheld for remittance by the buyers to the Canada Revenue Agency for potential amounts due
      for Barnwell&#8217;s Canadian income taxes related to the sale.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The difference in the relationship between capitalized costs and proved
      reserves of the Spirit River properties sold as compared to the properties retained by Barnwell was significant as there was a 93% difference in capitalized costs divided by proved reserves if the gain was recorded versus the gain being credited
      against the full-cost pool. Accordingly, Barnwell recorded a gain on the sale of Spirit River of $818,000 in the year ended September 30, 2021 in accordance with the guidance in Rule 4-10(c)(6)(i) of Regulation S-X of the rules and regulations of the
      SEC, which requires an allocation of capitalized costs to the reserves sold and reserves retained on the basis of the relative fair values of the properties as there was a substantial economic difference between the properties sold and those
      retained. Also included in the gain calculation were asset retirement obligations of $77,000 assumed by the purchaser.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">85</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In the quarter ended December 31, 2019, Barnwell entered into a purchase
      and sale agreement with an independent third party and sold its interests in properties located in the Progress area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $594,000 in order to,
      among other things, reflect an economic effective date of October 1, 2019. The proceeds were credited to the full cost pool, with no gain or loss recognized, as the sale did not result in a significant alteration of the relationship between
      capitalized costs and proved reserves.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Acquisitions</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In April 2021, Barnwell acquired additional working interests in oil and
      natural gas properties located in the Twining area of Alberta, Canada for cash consideration of $348,000. The purchase price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective
      date to the closing date. The final determination of the customary adjustments to the purchase price has not yet been made, however it is not expected to result in a material adjustment.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">There were no significant amounts paid for oil and natural gas property
      acquisitions during the year ended September 30, 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Impairment of Oil and Natural Gas Properties</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Under the full cost method of accounting, the Company performs quarterly
      oil and natural gas ceiling test calculations. There was a ceiling test impairment of $630,000 during the year ended September 30, 2021. There was a $4,326,000 ceiling test impairment during the year ended September 30, 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Changes in the mandated 12-month historical rolling average
      first-day-of-the-month prices for oil, natural gas and natural gas liquids prices, the value of reserve additions as compared to the amount of capital expenditures to obtain them, and changes in production rates and estimated levels of reserves,
      future development costs and the estimated market value of unproved properties, impact the determination of the maximum carrying value of oil and natural gas properties.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">86</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 35.25pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>8.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>PROPERTY AND EQUIPMENT AND ASSET RETIREMENT OBLIGATION</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s property and equipment is detailed as follows:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid">
          <p style="margin-top: 0; margin-bottom: 0">Estimated</p>
          <p style="margin-top: 0; margin-bottom: 0">Useful</p>
          <p style="margin-top: 0; margin-bottom: 0">Lives</p>
        </td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">Gross <br>
          Property and <br>
          Equipment</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">Accumulated <br>
          Depletion, <br>
          Depreciation,<br>
          Amortization, <br>
          and Impairment</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="2">Net<br>
          Property and<br>
          Equipment</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-decoration: underline; padding-left: 2.6pt">At September 30, 2021:</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; text-indent: -6pt; padding-left: 8.6pt">Oil and natural gas properties:<br>
          (full cost accounting)</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%">&#160;</td>
        <td style="width: 14%">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 14%; text-align: right">58,490,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 14%; text-align: right">(56,067,000</td>
        <td style="width: 1%; text-align: left">)</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 14%; text-align: right">2,423,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">962,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">962,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 27.35pt">Total oil and natural gas properties</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">59,452,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(56,067,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">3,385,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 2.6pt">Drilling rigs and equipment</td>
        <td>&#160;</td>
        <td style="text-align: center; padding-left: 3.45pt">3 &#8211; 10 years</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">7,273,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(6,789,000</td>
        <td style="text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">484,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.6pt">Other property and equipment</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; padding-bottom: 1pt; padding-left: 3.45pt">3 &#8211; 10 years</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">687,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(681,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">6,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-bottom: 2.5pt; padding-left: 26.6pt">Total</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">67,412,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(63,537,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,875,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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          Useful <br>
          Lives</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">Gross<br>
          Property and <br>
          Equipment</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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          Depletion,<br>
          Depreciation,<br>
          Amortization,<br>
          and Impairment</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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          Property and <br>
          Equipment</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-decoration: underline; padding-left: 2.6pt">At September 30, 2020:</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; text-indent: -6pt; padding-left: 8.6pt">Oil and natural gas properties: <br>
          (full cost accounting)</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%">&#160;</td>
        <td style="width: 14%">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 14%; text-align: right">64,142,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 14%; text-align: right">(61,839,000</td>
        <td style="width: 1%; text-align: left">)</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 14%; text-align: right">2,303,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 14.6pt">Unproved properties</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 27.35pt">Total oil and natural gas properties</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">64,142,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(61,839,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">2,303,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 2.6pt">Drilling rigs and equipment</td>
        <td>&#160;</td>
        <td style="text-align: center; padding-left: 3.45pt">3 &#8211; 10 years</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">8,244,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(6,793,000</td>
        <td style="text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,451,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.6pt">Other property and equipment</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; padding-bottom: 1pt; padding-left: 3.45pt">3 &#8211; 17 years</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">1,045,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(1,025,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">20,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-bottom: 2.5pt; padding-left: 26.6pt">Total</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">73,431,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(69,657,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">3,774,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">See Note 7 for discussion of acquisitions and divestitures of oil and natural gas properties
      in fiscal 2021 and 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">87</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell recognizes the fair value of a liability for an asset
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="6">Year ended September 30,</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">6,194,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">6,389,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">532,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">227,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 9.35pt">Liabilities associated with properties sold</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(375,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(169,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 9.35pt">Revision of estimated obligation</td>
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        <td style="font-weight: bold; text-align: right">279,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; text-align: right">580,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">561,000</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(421,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(498,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt">Foreign currency translation adjustment</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">264,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(37,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 2.6pt">Asset retirement obligation as of end of year</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">7,053,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">6,194,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 9.35pt">Less current portion</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(713,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(647,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9.35pt">Asset retirement obligation, long-term</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,340,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">5,547,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font: 10pt 'Times New Roman';">Asset retirement obligations were reduced by $375,000 and $169,000, in fiscal 2021 and
      2020, respectively, for those obligations that were assumed by purchasers of Barnwell&#8217;s oil and natural gas properties. Asset retirement obligations also increased by $279,000 in fiscal 2021 as compared to a reduction of $279,000 in fiscal 2020
      primarily due to upward revisions from acceleration in the estimated timing of future abandonments as a result of changes in the estimated economic life of certain wells and changes in management&#8217;s discretionary timing of abandonment projects due to
      an increase in estimated funds available as well as an increase in the estimated cost of abandonments at the Manyberries area, as further discussed below. Asset retirement obligations increased by $532,000 and $227,000 in fiscal 2021 and 2020,
      respectively, due primarily to our acquisitions (see Note 7 for additional details). The asset retirement obligation reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated
      with Barnwell&#8217;s oil and natural gas properties. Barnwell estimates the ultimate productive life of the properties, a credit-adjusted risk-free rate, and an inflation factor in order to determine the current present value of this obligation. The
      credit-adjusted risk-free rate for the entire asset retirement obligation is a blended rate which ranges from 6% to 13.5%.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In September 2019, the AER issued an abandonment/closure order for all
      wells and facilities in the Manyberries area which had been largely operated by LGX, an operating company that went into receivership in 2016. The estimated asset retirement obligation for the Company&#8217;s interest in the wells and facilities in the
      Manyberries area is included in &#8220;Asset retirement obligation&#8221; in the Consolidated Balance Sheets.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Recently, the OWA created a WIP program for specific areas where there
      are a significant number of orphaned wells to abandon. The OWA has the ability and expertise to abandon wells using its internal resources and network of service providers resulting in efficiencies that companies such as Barnwell, would not be able
      to obtain on its own. Under the WIP program, the Company would be required to provide payment for only Barnwell&#8217;s working interest share, however, all WIP&#8217;s would have to participate in the program for the OWA to begin its work. In March 2021, the
      Company was notified by the OWA that Barnwell&#8217;s Manyberries wells were confirmed to be in the WIP program.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 36pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Under the new agreement with the OWA, the Company is required to pay the
      abandonment and reclamation costs in advance through a cash deposit. The total cash deposit amount was calculated to be approximately $1,525,000 and the Company paid $888,000 of the total deposit in July and August 2021 and will need to pay the
      remaining balance of $637,000 by August 2022. The deposit balance at September 30, 2021, less draw-downs by the OWA for OWA-performed abandonments, was $809,000 and is reflected in &#8220;Other current assets&#8221; in the Consolidated Balance Sheet as of
      September 30, 2021. There is no right of offset between the deposit with the OWA and the Company&#8217;s ARO liability balance. The Company revised its Manyberries ARO liability based on the OWA&#8217;s revised abandonment and reclamation estimates, which
      resulted in an increase of approximately $213,000 in the current year. The increase in the ARO liability was a result of higher reclamation and remediation costs than anticipated, partially offset by lower abandonment estimates. A remaining excess
      deposit, if any, would ultimately be refunded to the Company upon completion of all of the work.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">88</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 35.25pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>9.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>RETIREMENT PLANS</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell sponsors a noncontributory defined benefit pension plan
      (&#8220;Pension Plan&#8221;) covering substantially all of its U.S. employees, with benefits based on years of service and the employee&#8217;s highest consecutive 5 years average earnings. Barnwell&#8217;s funding policy is intended to provide for both benefits attributed
      to service to date and for those expected to be earned in the future. In addition, Barnwell sponsors a Supplemental Executive Retirement Plan (&#8220;SERP&#8221;), a noncontributory supplemental retirement benefit plan which covers certain current and former
      employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan, and previously sponsored a post-retirement medical insurance benefits plan (&#8220;Post-retirement Medical&#8221;) covering officers of Barnwell Industries, Inc., the parent
      company, who have attained at least 20 years of service of which at least 10 years were at the position of Vice President or higher, their spouses and qualifying dependents.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In December 2019, the Company&#8217;s Board of Directors approved a resolution
      to freeze all future benefit accruals for all participants under the Company&#8217;s Pension Plan and SERP effective December 31, 2019. Consequently, current participants in the Pension Plan and SERP no longer accrue new benefits under the plans and new
      employees of the Company are no longer eligible to enter the Pension Plan and SERP as participants after December 31, 2019. The freezing of the Pension Plan and SERP triggered a curtailment which required a remeasurement of the projected benefit
      obligations of the Pension Plan and SERP and resulted in a $1,726,000 reduction in unrecognized pension benefit costs that were previously included in accumulated other comprehensive loss, with a corresponding curtailment gain in other comprehensive
      income which was recorded during the year ended September 30, 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In June 2021, the Company terminated its Post-retirement Medical plan
      effective June 4, 2021. Pursuant to the Post-retirement Medical plan document, the Company, as the sponsor of the Postretirement Medical plan, had the right to terminate the plan within sixty days&#8217; notice to each participant and the plan may be
      terminated by the resolution of the Board of the Directors of the Company. Further, under the terms of the plan document, the participants in the Post-retirement Medical plan were not entitled to any unpaid vested benefits thereunder upon termination
      of the plan. The Post-retirement Medical plan was an unfunded plan and the Company funded benefits when payments were made. As a result of the plan termination, the Company recognized a non-cash gain of $2,341,000 during the year ended September 30,
      2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">89</font></div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font: 10pt 'Times New Roman';">The following tables detail the changes in benefit obligations, fair values of plan assets and reconciliations
      of the funded status of the retirement plans:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; padding-left: 0.125in">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="6">Pension</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="6">SERP</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="6">Post-retirement Medical</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; padding-left: 0.125in">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="22">September 30,</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="text-align: center; vertical-align: bottom">
        <td style="padding-left: 0.125in">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="font-style: italic; text-align: left" colspan="19">Change in Projected Benefit Obligation:</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
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        <td style="width: 34%; text-align: left; padding-left: 0.125in">Benefit obligation at beginning of year</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 8%; font-weight: bold; text-align: right">10,280,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left"><b>$</b></td>
        <td style="width: 8%; text-align: right"><b>2,031,000</b></td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 8%; text-align: right">2,385,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">50,000</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">3,000</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: right">258,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: right">304,000</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">51,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">63,000</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">48,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">80,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(15,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">504,000</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">63,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(90,000</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">(158,000</td>
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        <td style="text-align: right">(153,000</td>
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        <td style="font-weight: bold; text-align: right">(9,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: right">(5,000</td>
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        <td>&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="text-align: right">&#8212;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,136,000</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">2,031,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">2,839,000</td>
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        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">5,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: right">8,000</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.125in">Benefits paid</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(158,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(153,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(5,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">)</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">11,051,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: left"><b>$</b></td>
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        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">(2,839,000</td>
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  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="text-align: center; vertical-align: bottom">
        <td style="padding-left: 0.125in">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="text-align: center; vertical-align: bottom">
        <td style="padding-left: 0.125in">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="padding-left: 0.125in">&#160;</td>
        <td>&#160;</td>
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        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td style="width: 1%">&#160;</td>
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        <td style="width: 8%; text-align: right">771,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left"><b>$</b></td>
        <td style="width: 8%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 8%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left"><b>$</b></td>
        <td style="width: 8%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 8%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">(35,000</td>
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        <td>&#160;</td>
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        <td style="text-align: right">(32,000</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">(9,000</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(2,101,000</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">(1,999,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">(2,830,000</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right"><b>2,229,000</b></td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">771,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right"><b>(2,136,000</b></td>
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        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">(2,031,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left"><b>$</b></td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(2,839,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-left: 0.125in">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-style: italic; text-align: left" colspan="21">Amounts recognized in accumulated other comprehensive income (loss) before income taxes:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: right"><b>471,000</b></td>
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        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">1,681,000</td>
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        <td>&#160;</td>
        <td style="text-align: left"><b>$</b></td>
        <td style="text-align: right">&#8212;</td>
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        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">721,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.125in">Prior service cost (credit)</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 0.125in">Accumulated other comprehensive loss</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left"><b>$</b></td>
        <td style="border-bottom: Black 2.5pt double; text-align: right"><b>471,000</b></td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">1,681,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left"><b>$</b></td>
        <td style="border-bottom: Black 2.5pt double; text-align: right"><b>135,000</b></td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">72,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left"><b>$</b></td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">721,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

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  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Currently, no contributions will be made to the Pension Plan during
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">90</font></div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Pension Plan actuarial gains in fiscal 2021 were primarily due to an
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following table presents the weighted-average assumptions used to
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

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        <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.125in">&#160;</td>
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        <td style="text-align: center; padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.125in">&#160;</td>
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        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="16">Year ended September 30,</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.125in">&#160;</td>
        <td style="font-weight: bold; text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td>
        <td style="font-weight: bold; text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">2020</td>
        <td style="text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td>
        <td style="font-weight: bold; text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">2020</td>
        <td style="text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td>
        <td style="font-weight: bold; text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">2020</td>
        <td style="text-align: center; padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: left; padding-left: 0.125in">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
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        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
      </tr>
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        <td style="width: 9%; font-weight: bold; text-align: center">2.84%</td>
        <td style="width: 1%; font-weight: bold; text-align: center">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
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        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: center">&#160;</td>
        <td style="width: 9%; font-weight: bold; text-align: center">2.84%</td>
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        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 12%; text-align: center">2.54%</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: center">&#160;</td>
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        <td style="width: 1%; font-weight: bold; text-align: center">&#160;</td>
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        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>N/A</b></font></td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;">N/A</font></td>
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
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        <td style="font-weight: bold; text-align: center">&#160;</td>
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        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>N/A</b></font></td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
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        <td style="text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;">N/A</font></td>
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        <td style="text-align: left; padding-left: 0.125in">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
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        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
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        <td style="font-weight: bold; text-align: center">&#160;</td>
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        <td style="font-weight: bold; text-align: center">&#160;</td>
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        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
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        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">3.06%</td>
        <td style="text-align: center">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 0.125in">Expected return on plan assets</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center">5.00%</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">6.50%</td>
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>N/A</b></font></td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;">N/A</font></td>
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>N/A</b></font></td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;">N/A</font></td>
        <td style="text-align: center">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 0.125in">Rate of compensation increase</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>N/A</b></font></td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">4.00%</td>
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>N/A</b></font></td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center">4.00%</td>
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>N/A</b></font></td>
        <td style="font-weight: bold; text-align: center">&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;">N/A</font></td>
        <td style="text-align: center">&#160;</td>
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  </table>
  <p style="margin-top: 0pt; font: 10pt 'Times New Roman'; margin-bottom: 0pt; color: Red;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <!-- Field: Rule-Page -->
  <div align="LEFT">
    <div style="font-size: 1pt; border-top: Black 1pt solid; width: 40%">&#160;</div>
  </div>
  <!-- Field: /Rule-Page -->
  <p style="margin-top: 0pt; font: 10pt 'Times New Roman'; margin-bottom: 0pt; color: Red;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 17.6pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(1)</font></td>
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      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="text-align: center; vertical-align: bottom">
        <td style="padding-left: 0.125in">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="6">Pension</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; padding-left: 0.125in">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="text-align: center; vertical-align: bottom">
        <td style="padding-left: 0.125in">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="padding-left: 0.125in">&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
        <td colspan="2">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; text-align: left"><b>$</b></td>
        <td style="width: 9%; font-weight: bold; text-align: right">&#8212;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 9%; text-align: right">50,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 9%; font-weight: bold; text-align: right">&#8212;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
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        <td style="width: 9%; font-weight: bold; text-align: right">&#8212;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 9%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">258,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">51,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
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        <td>&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,000</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">5,000</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: left; padding-left: 0.125in; padding-bottom: 1pt">Curtailment cost (income)</td>
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        <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid">&#160;</td>
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        <td style="text-align: left; border-bottom: Black 1pt solid">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid">&#160;</td>
        <td style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">&#8212;</td>
        <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; border-bottom: Black 1pt solid">&#160;</td>
        <td style="text-align: right; border-bottom: Black 1pt solid">(53,000</td>
        <td style="text-align: left; padding-bottom: 1pt">)</td>
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        <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid">&#160;</td>
        <td style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">&#8212;</td>
        <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left; border-bottom: Black 1pt solid">&#160;</td>
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        <td style="text-align: right; border-bottom: Black 2.5pt double">(237,000</td>
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        <td style="text-align: right; border-bottom: Black 2.5pt double">17,000</td>
        <td style="text-align: left; padding-bottom: 2.5pt">&#160;</td>
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        <td style="text-align: left; border-bottom: Black 2.5pt double"><b>$</b></td>
        <td style="text-align: right; border-bottom: Black 2.5pt double"><b>110,000</b></td>
        <td style="text-align: left; padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="text-align: left; border-bottom: Black 2.5pt double">$</td>
        <td style="text-align: right; border-bottom: Black 2.5pt double">160,000</td>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The accumulated benefit obligation differs from the projected benefit
      obligation in that it assumes future compensation levels will remain unchanged. The accumulated benefit obligation for the Pension Plan was $10,365,000 and $10,280,000 at September 30, 2021 and 2020, respectively. The accumulated benefit obligation
      for the SERP was $2,136,000 and $2,031,000 at September 30, 2021 and 2020, respectively.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 9%; text-align: right">320,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">470,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">97,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">533,000</td>
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        <td>&#160;</td>
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        <td style="text-align: right">123,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">526,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">122,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">$</td>
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        <td style="text-align: left">$</td>
        <td style="text-align: right">121,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
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        <td>&#160;</td>
        <td style="text-align: left">$</td>
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        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">$</td>
        <td style="text-align: right">636,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-left: 0.125in">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Plan Assets</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Management communicates periodically with its professional investment
      advisors to establish investment policies, direct investments and select investment options. The overall investment objective of the Pension Plan is to attain a diversified combination of investments that provides long-term growth in the assets of
      the plan to fund future benefit obligations while managing risk in order to meet current benefit obligations. Generally, interest and dividends received provide cash flows to fund current benefit obligations. Longer-term obligations are generally
      estimated to be provided for by growth in equity securities. The Company&#8217;s investment policy permits investments in a diversified mix of U.S. and international equities, fixed income securities and cash equivalents.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center">Target</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="4">September 30,</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td>&#160;</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
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      </tr>
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        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td>&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: center">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Actual investment allocations may vary from our target allocations from
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">92</font></div>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We categorize plan assets into three levels based upon the assumptions
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      prices on recognized and highly liquid exchanges. Fixed income securities are valued based upon the closing price reported in the active market in which the security is traded. All of our plan assets are categorized as Level 1 assets, and as such,
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="text-align: center; vertical-align: bottom">
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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      <tr style="text-align: center; vertical-align: bottom; font: 10pt 'Times New Roman';">
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Quoted <br>
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        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';">
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        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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      <tr style="text-align: center; vertical-align: bottom; font: 10pt 'Times New Roman';">
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="border-bottom: 1pt solid Black; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="border-bottom: 1pt solid Black; font: 10pt 'Times New Roman';">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">as of<br>
              September 30, <br>
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        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="border-bottom: 1pt solid Black; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="border-bottom: 1pt solid Black; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Active <br>
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        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="border-bottom: 1pt solid Black; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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            Inputs <br>
            (Level 2)</font></td>
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="border-bottom: 1pt solid Black; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="border-bottom: 1pt solid Black; font: 10pt 'Times New Roman';">
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        <td style="padding-bottom: 1pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: right; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: right; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: right; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: right; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: bottom; font: 10pt 'Times New Roman';">
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        <td style="width: 1%; font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$</font></td>
        <td style="width: 12%; font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">25,000</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$</font></td>
        <td style="width: 12%; font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">25,000</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$</font></td>
        <td style="width: 12%; font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$</font></td>
        <td style="width: 12%; font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="width: 1%; font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: bottom; font: 10pt 'Times New Roman';">
        <td style="text-align: left; padding-left: 2.6pt; font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Corporate bonds</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">1,000</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">1,000</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: bottom; font: 10pt 'Times New Roman';">
        <td style="text-align: left; padding-left: 2.6pt; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Fixed income exchange-traded funds</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">3,809,000</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">3,809,000</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: bottom; font: 10pt 'Times New Roman';">
        <td style="text-align: left; padding-left: 2.6pt; font: 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Preferred securities</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">48,000</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">48,000</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: bottom; font: 10pt 'Times New Roman';">
        <td style="text-align: left; padding-left: 2.6pt; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Equity securities exchange-traded funds</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">459,000</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">459,000</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: right; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="font: bold 10pt 'Times New Roman'; text-align: left; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: bottom; font: 10pt 'Times New Roman';">
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; vertical-align: bottom;">&#160;</td>
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        <td style="padding-bottom: 1pt; vertical-align: bottom;">&#160;</td>
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        <td style="padding-bottom: 1pt; vertical-align: bottom;">&#160;</td>
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        <td style="padding-bottom: 1pt; vertical-align: bottom;">&#160;</td>
        <td style="padding-bottom: 1pt; vertical-align: bottom;">&#160;</td>
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        <td style="text-align: right;">&#160;</td>
        <td style="text-align: left;">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: right;">&#160;</td>
        <td style="text-align: left;">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left;">&#160;</td>
        <td style="text-align: right;">&#160;</td>
        <td style="text-align: left;">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left;">&#160;</td>
        <td style="text-align: right;">&#160;</td>
        <td style="text-align: left;">&#160;</td>
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        <td style="width: 1%; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">$</td>
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        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="width: 12%; text-align: right; background-color: rgb(204, 238, 255);">1,000</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="width: 12%; text-align: right; background-color: rgb(204, 238, 255);">&#8212;</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="width: 12%; text-align: right; background-color: rgb(204, 238, 255);">&#8212;</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
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        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">5,762,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">5,762,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">&#8212;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">&#8212;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
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        <td style="text-align: left; padding-left: 2.6pt; background-color: rgb(204, 238, 255);">Equity securities exchange-traded funds</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">352,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">352,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">&#8212;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">&#8212;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="padding-bottom: 1pt; padding-left: 2.6pt; background-color: rgb(255, 255, 255);">Equities</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">4,936,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">4,936,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="padding-bottom: 2.5pt; padding-left: 2.6pt; background-color: rgb(204, 238, 255);">Total</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(204, 238, 255);">11,051,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(204, 238, 255);">11,051,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(204, 238, 255);">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(204, 238, 255);">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 35.25pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>10.</b></font></td>
        <td style="font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u>INCOME TAXES</u></b></font></td>
      </tr>

  </table>
  <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The components of earnings (loss) before income taxes, after adjusting the earnings (loss)
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
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      <tr style="vertical-align: bottom;">
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        <td style="width: 12%; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">5,436,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="width: 12%; text-align: right; background-color: rgb(204, 238, 255);">1,518,000</td>
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        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">1,149,000</td>
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        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
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        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">(6,271,000</td>
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      <tr style="vertical-align: bottom;">
        <td style="padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
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        <td style="padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(204, 238, 255);">(4,753,000</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
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        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
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        <td style="width: 12%; text-align: right">&#8212;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.125in">Canadian</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td style="font-weight: bold; text-align: right">165,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: right">26,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">26,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">332,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">3,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Consolidated taxes do not bear a customary relationship to pretax
      results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax
      liabilities, are not estimated to have a future benefit as tax credits or deductions. Income from our non-controlling interest in the Kukio Resort Land Development Partnerships is treated as non-unitary for state of Hawaii unitary filing purposes,
      thus unitary Hawaii losses provide limited sheltering of such non-unitary income. Income from our investment in the Oklahoma oil venture is 100% allocable to Oklahoma, and therefore, receives no benefit from consolidated or unitary losses.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      that decreased the provincial general corporate tax rate from 12% to 11% effective July 1, 2019, with further 1% rate reductions on January 1 of every year until the provincial general corporate tax rate is 8% on January 1, 2022, bringing Barnwell of
      Canada&#8217;s and Octavian Oil&#8217;s total Canadian statutory tax rates from 30.65% and 27.00%, respectively, to 29.70% and 26.00%, respectively, effective July 1, 2019 and to 26.85% and 23.00%, respectively, effective January 1, 2022. On June 29, 2020, the
      Government of Alberta introduced Alberta&#8217;s Recovery Plan which will, among other things, reduce Alberta&#8217;s general corporate income tax rate to 8% (from 10%) effective July 1, 2020. This reduction was enacted in the quarter ended December 31, 2020.
      Canadian deferred tax assets and liabilities have been measured using the enacted tax rates in effect for the year in which the differences are expected to reverse. Alberta rate changes have no significant impact to earnings/loss as a result of a
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On December 27, 2020, then President Donald Trump signed into law the
      Consolidated Appropriations Act (the &#8220;Act&#8221;), an omnibus spending bill to fund the federal government that also includes an array of COVID-related tax relief for individuals and businesses. The tax-related measures contained in the Act revise and
      expand provisions enacted earlier in the year by the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act. The Act also extends a number of expiring tax provisions. Additionally, the Act provides for a
      100% deduction for certain business meals incurred in calendar years 2021 and 2022. The Company determined that income tax effects related to the passage of the Consolidated Appropriations Act were not material to the financial statements for the
      year ended September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
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      <tr style="vertical-align: bottom">
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        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">1,383,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">(998,000</td>
        <td style="width: 1%; text-align: left">)</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(260,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(1,482,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,978,000</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">87,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(762,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 2.6pt">U.S. state tax provision, net of federal benefit</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">332,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">3,000</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">12,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">42,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">332,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">3,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The changes in the valuation allowance shown in the table above exclude
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">95</font></div>
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      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The tax effects of temporary differences that give rise to significant portions of the
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="text-align: right">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="7">September 30,</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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      <tr style="vertical-align: bottom;">
        <td colspan="9">Deferred income tax assets:</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="width: 70%; text-align: left; text-indent: 10pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Foreign tax credit carryover under U.S. tax law</td>
        <td style="width: 1%; font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">1,197,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="width: 12%; text-align: right; background-color: rgb(204, 238, 255);">2,421,000</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 10pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">U.S. federal net operating loss carryover</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">8,846,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">8,874,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 10pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">U.S. state unitary net operating loss carryovers</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">939,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">877,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 10pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Canadian net operating loss carryovers</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">1,411,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">1,351,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 1pt; padding-left: 10pt; background-color: rgb(204, 238, 255);">Tax basis of investment in land in excess of book basis under U.S. tax law</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">305,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">306,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 1pt; padding-left: 10pt; background-color: rgb(255, 255, 255);">Property and equipment accumulated book depreciation and depletion in excess of tax under Canadian tax law</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">1,091,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">1,421,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 1pt; padding-left: 10pt; background-color: rgb(204, 238, 255);">Property and equipment accumulated book depreciation and depletion in excess of tax under U.S. tax law</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">699,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">931,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 1pt; padding-left: 10pt; background-color: rgb(255, 255, 255);">Liabilities accrued for books but not for tax under U.S. tax law</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">1,225,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">1,894,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 10pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Liabilities accrued for books but not for tax under Canadian tax law</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">1,813,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">1,591,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="padding-bottom: 1pt; text-indent: 10pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Other</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">170,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">345,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 22pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Total gross deferred income tax assets</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">17,696,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">20,011,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 22pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Less valuation allowance</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">(16,398,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">)</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">(19,357,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">)</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 1pt; padding-left: 10pt; background-color: rgb(204, 238, 255);">Net deferred income tax assets</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">1,298,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(204, 238, 255);">654,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
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      </tr>
      <tr style="vertical-align: bottom;">
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        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">(1,156,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">)</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">(654,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">)</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 1pt; padding-left: 10pt; background-color: rgb(255, 255, 255);">Book basis of investment in land development partnerships in excess of tax basis under U.S. state non-unitary tax law</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">(352,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">)</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">(194,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">)</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 1pt; padding-left: 10pt; background-color: rgb(204, 238, 255);">U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. tax law</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">(142,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">)</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">&#8212;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
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      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 1pt; padding-left: 10pt; background-color: rgb(255, 255, 255);">U.S. oil and gas property and equipment accumulated tax depreciation and depletion in excess of book under U.S. state tax
          law</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">(7,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">)</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">(1,657,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">)</td>
        <td style="padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(204, 238, 255);">(848,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(204, 238, 255);">)</td>
      </tr>
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        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Net deferred income tax liability</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">(359,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">)</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(255, 255, 255);">(194,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(255, 255, 255);">)</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="background-color: rgb(204, 238, 255);" colspan="9">Reported as:</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 10pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Deferred income tax assets</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">&#8212;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">&#8212;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Deferred income tax liabilities</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">(359,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">)</td>
        <td style="padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(204, 238, 255);">(194,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(204, 238, 255);">)</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Net deferred income tax liability</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">(359,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">)</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(255, 255, 255);">(194,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(255, 255, 255);">)</td>
      </tr>

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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';">The total valuation allowance decreased $2,959,000 for the year ended September 30, 2021. The decrease was
      primarily due to a $1,225,000 decrease in the U.S. federal tax law valuation allowance related to U.S. federal net operating loss carryforwards, a $1,224,000 decrease in the U.S. federal tax law valuation allowance related to foreign tax credit
      carryovers, and a $257,000 decrease in the valuation allowance for deferred tax assets under Canadian law related to property and equipment accumulated book depletion in excess of tax and Canadian jurisdiction net operating loss carryforwards that
      may not be realizable. Of the total net decrease in the valuation allowance for fiscal 2021, $2,830,000 was recognized as an income tax benefit and $129,000 was credited to accumulated other comprehensive loss.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">96</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Net deferred tax assets at September 30, 2021 of $1,298,000 consists of the portion of U.S.
      federal consolidated deferred tax assets that are estimated to be partially realized through corresponding reversals of U.S. federal consolidated deferred tax liabilities related to the Kukio Resort Land Development Partnerships&#8217; excess of book
      income over taxable income and the Oklahoma oil venture&#8217;s book basis of property and equipment in excess of tax basis.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">At September 30, 2021, Barnwell had U.S. federal foreign tax credit carryovers, U.S. federal
      net operating loss carryovers, U.S. state net operating loss carryovers and Canadian net operating loss carryovers totaling $1,197,000, $42,125,000, $14,674,000 and $5,716,000, respectively. All four items were fully offset by valuation allowances at
      September 30, 2021, except for a portion of Hawaii NOLs which is expected to shelter a portion of the reversal of the Company&#8217;s Hawaii non-unitary taxable temporary difference related to its investment in Hawaii land development partnerships. The
      U.S. federal net operating loss carryovers generated through September 30, 2018 expire in fiscal years 2032-2038, the U.S. state unitary net operating loss carryovers generated through September 30, 2017 expire in fiscal years 2033-2037, the Canadian
      net operating loss carryovers expire in fiscal years 2037-2041, and the foreign tax credit carryovers expire in fiscal years 2022-2025. The U.S. federal net operating loss carryovers generated in the years ended September 30, 2021, 2020 and 2019 and
      the U.S. state net operating loss carryovers generated in the years ended September 30, 2021, 2020, 2019 and 2018 have no expiry, however utilization of the U.S. state net operating loss carryovers generated in fiscal 2018 and future years are
      limited to 80% of taxable income.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">FASB ASC Topic 740, Income Taxes, prescribes a threshold for recognizing the financial
      statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a taxing authority. The Company has no uncertain tax positions as of September 30, 2021 or
      2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Included below is a summary of the tax years, by jurisdiction, that remain subject to
      examination by taxing authorities at September 30, 2021:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="width: 50%; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt; border-bottom: Black 1pt solid">Jurisdiction</td>
        <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid">&#160;</td>
        <td style="width: 49%; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid">Fiscal Years Open</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">U.S. federal</td>
        <td>&#160;</td>
        <td style="text-align: center">2018 &#8211; 2020</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Various U.S. states</td>
        <td>&#160;</td>
        <td style="text-align: center">2018 &#8211; 2020</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Canada federal</td>
        <td>&#160;</td>
        <td style="text-align: center">2014 &#8211; 2020</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Various Canadian provinces</td>
        <td>&#160;</td>
        <td style="text-align: center">2014 &#8211; 2020</td>
      </tr>

  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">97</font>&#160;</div>
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  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>REVENUE FROM CONTRACTS WITH CUSTOMERS</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Disaggregation of Revenue</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following tables provide information about disaggregated revenue by revenue streams,
      reportable segments, geographical region, and timing of revenue recognition for the years ended September 30, 2021 and 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><u></u></b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">Contract <br>
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        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">Land <br>
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        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="width: 35%; text-indent: 19pt; padding-left: 0.5pt">Oil</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 10%; font-weight: bold; text-align: right">7,617,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 10%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 10%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 10%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 10%; font-weight: bold; text-align: right">7,617,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">1,871,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">1,871,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">766,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">766,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">5,809,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">5,809,000</td>
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        <td style="font-weight: bold; text-align: right">1,738,000</td>
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        <td style="font-weight: bold; text-align: right">1,738,000</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">304,000</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">304,000</td>
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">10,254,000</td>
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        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,809,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,738,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">304,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">18,105,000</td>
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        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">118,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">5,809,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">1,738,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: right">35,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: right">7,700,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">10,136,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">269,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">10,405,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">10,254,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,809,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,738,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">304,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">18,105,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">10,254,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">1,738,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">304,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">12,296,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">5,809,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">5,809,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
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        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 19pt; padding-left: 0.5pt">Total revenues before interest income</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">10,254,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,809,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,738,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">304,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">18,105,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
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  </table>
  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; padding-left: 0.5pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="18"><font style="font: 10pt 'Times New Roman';">Year ended September 30, 2020</font></td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td style="padding-left: 0.5pt; width: 35%; text-align: center">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
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        <td style="text-align: center; width: 1%">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="text-align: center; width: 1%">&#160;</td>
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        <td style="text-align: center; width: 1%">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="text-align: center; width: 1%">&#160;</td>
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        <td style="text-align: center; width: 1%">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="text-align: center; width: 1%">&#160;</td>
        <td style="text-align: center; width: 10%">&#160;</td>
        <td style="text-align: center; width: 1%">&#160;</td>
        <td style="width: 1%; text-align: center">&#160;</td>
        <td style="text-align: center; width: 1%">&#160;</td>
        <td style="text-align: center; width: 10%">&#160;</td>
        <td style="text-align: center; width: 1%">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; padding-left: 0.5pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center">&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">&#8212;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">&#8212;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">&#8212;</td>
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        <td style="font-weight: bold; text-align: right">&#8212;</td>
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        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,119,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
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        <td>&#160;</td>
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        <td style="font-weight: bold; text-align: right">&#8212;</td>
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        <td style="text-align: right">10,994,000</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="text-align: right">10,994,000</td>
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        <td style="text-align: right">325,000</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">317,000</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">317,000</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">6,693,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">10,994,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">325,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">317,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">18,329,000</td>
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        <td style="text-align: left; text-indent: 19pt; padding-left: 0.5pt">United States</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
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        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">10,994,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">325,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">6,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">11,325,000</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">6,693,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">311,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">7,004,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">6,693,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">10,994,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">325,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">317,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">18,329,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 19pt; padding-left: 0.5pt; padding-bottom: 1pt">Goods transferred at a point in time</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">6,693,000</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">325,000</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">317,000</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">7,335,000</td>
        <td style="text-align: left; padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">10,994,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">10,994,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font-weight: normal; font-style: normal">$</font></td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font-weight: normal; font-style: normal">6,693,000</font></td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">10,994,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font-weight: normal; font-style: normal">$</font></td>
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        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font-weight: normal; font-style: normal">$</font></td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font-weight: normal; font-style: normal">317,000</font></td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">18,329,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 18.25pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"> <u> </u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 18.25pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: bottom">
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        <td style="font-weight: bold; text-align: right">581,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">455,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';">Accounts receivables from contracts with customers are included in &#8220;Accounts and other receivables, net of
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Retainage, included in contract assets, represents amounts due from customers, but where
      payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice, up to contractually-specified maximums. The Company classifies as a current asset those
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Contract assets represent the Company&#8217;s rights to consideration in exchange for services
      transferred to a customer that have not been billed as of the reporting date. The Company&#8217;s rights are generally unconditional at the time its performance obligations are satisfied.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">When the Company receives consideration, or such consideration is unconditionally due, from a
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      costs and estimated earnings on uncompleted contracts. As of September 30, 2021 and 2020, the Company had $455,000 and $1,097,000, respectively, included in &#8220;Other current liabilities&#8221; on the Consolidated Balance Sheets for those performance
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Performance Obligations</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company&#8217;s remaining performance obligations for drilling and pump installation contracts
      (hereafter referred to as &#8220;backlog&#8221;) represent the unrecognized revenue value of the Company&#8217;s contract commitments. The Company&#8217;s backlog may vary significantly each reporting period based on the timing of major new contract commitments. In
      addition, our customers have the right, under some infrequent circumstances, to terminate contracts or defer the timing of the Company&#8217;s services and their payments to us. Nearly all of the Company&#8217;s contract drilling segment contracts have original
      expected durations of one year or less. At September 30, 2021, the Company had four contract drilling jobs with original expected durations of greater than one year. For these contracts, approximately 13% of the remaining performance obligation of
      $2,817,000 is expected to be recognized in the next twelve months and the remaining, thereafter.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      and allocated across all performance obligations and deferred and amortized over the contract term on a progress towards completion basis. As of September 30, 2021 and 2020, the Company had $326,000 and $145,000, respectively, in unamortized
      preconstruction costs related to contracts that were not completed. During the years ended September 30, 2021 and 2020, the amortization of preconstruction costs related to contracts was $224,000 and $163,000, respectively. These amounts have been
      included in &#8220;Contract drilling operating&#8221; costs and expenses in the accompanying Consolidated Statements of Operations. Additionally, no impairment charges in connection with the Company&#8217;s preconstruction costs were recorded during the years ended
      September 30, 2021 and 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Water Well Re-drill</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In the quarter ended December 31, 2019, the Company experienced the failure of a hole opener
      which broke apart leaving pieces in the bottom of a water well being drilled in Hawaii. Efforts to remove the items from the well were unsuccessful through the quarter ended March 31, 2020 and subsequently the Company determined that the well should
      be abandoned and a new well drilled at no incremental cost to the customer as per the terms of the contract. Accordingly, all the costs to drill and abandon the first well, which are all wasted costs, were excluded from the measurement of progress
      toward contract completion and all such costs were fully accrued in the quarter ended March 31, 2020, as this contract was determined to be a loss job. In September 2020, while making progress towards the drilling of a replacement well in different
      location, the drill string twisted off and became lodged in the well borehole, which required a stoppage of drilling and the need to dislodge and retrieve the broken drill string. Accordingly, the estimated total rework costs to remediate the
      situation was accrued at September 30, 2020. In January 2021, the broken drill string was retrieved from the well borehole and drilling of the replacement well recommenced.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">100</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Uninstalled Materials</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Uninstalled materials, which typically consists of well casing or pumps, are excluded in the
      costs-to-costs calculation for the duration of the contract as including these costs would result in a distortion of progress towards satisfaction of the performance obligation due to the resulting cumulative catch-up in margin in a single period. An
      equal amount of cost and revenue is recorded when uninstalled materials are controlled by the customer, which is typically when Barnwell has the right to payment for the materials and when the materials are delivered to the customer&#8217;s site or
      location and such materials have been accepted by the customer. Uninstalled materials are held in inventory and included in &#8220;Other current assets&#8221; on the Company&#8217;s Consolidated Balance Sheets.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A summary of Barnwell&#8217;s uninstalled materials is as follows:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font-weight: bold; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2"><font style="font-family: 'Times New Roman'; font-size: 10pt;">September 30, 2021</font></td>
        <td style="padding-bottom: 1pt; font-weight: bold"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2"><font style="font-family: 'Times New Roman'; font-size: 10pt;">September 30, 2020</font></td>
        <td style="padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 67%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Uninstalled materials</font></td>
        <td style="width: 1%; font-weight: bold"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; font-weight: bold; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 15%; font-weight: bold; text-align: right"><font style="font-family: 'Times New Roman'; font-size: 10pt;">226,000</font></td>
        <td style="width: 1%; font-weight: bold; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 12%; text-align: right"><font style="font-family: 'Times New Roman'; font-size: 10pt;">489,000</font></td>
        <td style="width: 1%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;&#160;</font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">101</font>&#160;</div>
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      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>SEGMENT AND GEOGRAPHIC INFORMATION</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell operates the following segments: 1) acquiring, developing, producing and selling oil
      and natural gas in Canada and Oklahoma (oil and natural gas); 2) investing in land interests in Hawaii (land investment); and 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling).</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following table presents certain financial information related to Barnwell&#8217;s reporting
      segments. All revenues reported are from external customers with no intersegment sales or transfers.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="text-align: right">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: right">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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      <tr style="vertical-align: bottom;">
        <td colspan="9">Revenues:</td>
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      <tr style="vertical-align: bottom;">
        <td style="width: 70%; text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Oil and natural gas</td>
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        <td style="width: 1%; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">10,254,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="width: 1%; background-color: rgb(204, 238, 255);">&#160;</td>
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        <td style="width: 12%; text-align: right; background-color: rgb(204, 238, 255);">6,693,000</td>
        <td style="width: 1%; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Contract drilling</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">5,809,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">10,994,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Land investment</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">1,738,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
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        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="padding-bottom: 1pt; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Other</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">317,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
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        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">18,105,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">18,329,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Interest income</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">8,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">18,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Total revenues</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">18,113,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(204, 238, 255);">18,347,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="background-color: rgb(255, 255, 255);" colspan="9">Depletion, depreciation, and amortization:</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Oil and natural gas</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">645,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">1,747,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Contract drilling</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">305,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">356,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="padding-bottom: 1pt; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Other</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">13,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(204, 238, 255);">44,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Total depletion, depreciation, and amortization</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">963,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(255, 255, 255);">2,147,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
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      <tr style="vertical-align: bottom;">
        <td style="background-color: rgb(204, 238, 255);" colspan="9">Impairment:</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Oil and natural gas</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">630,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">4,326,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Contract drilling</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">38,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">&#8212;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Land investment</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(255, 255, 255);">50,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Total impairment</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">668,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(204, 238, 255);">4,376,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="background-color: rgb(255, 255, 255);" colspan="9">Operating profit (loss) (before general and administrative expenses):</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Oil and natural gas</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">2,423,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">$</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">(4,230,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">)</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Contract drilling</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">(89,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">)</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">3,125,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Land investment</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">1,738,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">275,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Other</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">291,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">273,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Gain on sale of assets</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">1,982,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(204, 238, 255);">1,336,000</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Total operating profit</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">6,345,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">779,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
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      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Land investment</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">5,793,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">352,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">General and administrative expenses</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">(7,088,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">)</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">(5,820,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">)</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Interest expense</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">(13,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">)</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">(3,000</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">)</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Interest income</td>
        <td style="font-weight: bold; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">8,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(204, 238, 255);">18,000</td>
        <td style="text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Gain on debt extinguishment</td>
        <td style="font-weight: bold; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">149,000</td>
        <td style="font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="text-align: right; background-color: rgb(255, 255, 255);">&#8212;</td>
        <td style="text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt; background-color: rgb(204, 238, 255);">Gain on termination of post-retirement medical plan</td>
        <td style="font-weight: bold; padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; font-weight: bold; text-align: right; background-color: rgb(204, 238, 255);">2,341,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="padding-bottom: 1pt; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="border-bottom: 1pt solid Black; text-align: right; background-color: rgb(204, 238, 255);">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left; background-color: rgb(204, 238, 255);">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom;">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt; background-color: rgb(255, 255, 255);">Earnings (loss) before income taxes</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; font-weight: bold; text-align: right; background-color: rgb(255, 255, 255);">7,535,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="padding-bottom: 2.5pt; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="border-bottom: 2.5pt double Black; text-align: left; background-color: rgb(255, 255, 255);">$</td>
        <td style="border-bottom: 2.5pt double Black; text-align: right; background-color: rgb(255, 255, 255);">(4,674,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left; background-color: rgb(255, 255, 255);">)</td>
      </tr>

  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">102</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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        <td style="width: 70%; text-align: left; text-indent: 0in; padding-left: 0.5pt">Oil and natural gas</td>
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        <td style="width: 12%; font-weight: bold; text-align: right">3,028,000</td>
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        <td style="width: 12%; text-align: right">3,099,000</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">3,514,000</td>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;">&#160;</p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Assets By Segment:</i></font></p>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">6,401,000</td>
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        <td style="width: 1%">&#160;</td>
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        <td style="width: 12%; text-align: right">3,613,000</td>
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        <td style="font-weight: bold; text-align: right">4,071,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; text-align: right">&#8212;</td>
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        <td style="font-weight: bold; text-align: right">11,279,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">2,246,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Total</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">24,435,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">15,182,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"></p>
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  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
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  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Long-Lived Assets By Geographic Area:</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: right;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">4,180,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="width: 12%; text-align: right">3,393,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,220,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">2,302,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Total</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,400,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">5,695,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Revenue By Geographic Area:</i>&#160;<b> </b></font></p>
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  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="2">2020</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Total (excluding interest income)</td>
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">18,105,000</td>
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        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">18,329,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

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  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;">&#160;</p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"></p>
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  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 36.7pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <tr style="vertical-align: bottom">
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      <tr style="vertical-align: bottom">
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        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Foreign currency translation:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="width: 70%; text-align: left; padding-bottom: 1pt; text-indent: 22pt; padding-left: 0.5pt">Beginning accumulated foreign currency translation</td>
        <td style="width: 1%; font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="width: 12%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">545,000</td>
        <td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; text-align: right">(283,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(146,000</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 22pt; padding-left: 0.5pt">Income taxes</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; text-align: right">(146,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Retirement plans:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(1,980,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(3,608,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 22pt; padding-left: 0.5pt">Amortization of net actuarial loss and prior service cost</td>
        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">101,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">1,108,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,508,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">541,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 22pt; padding-left: 0.5pt">Income taxes</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 33pt; padding-left: 0.5pt">Net current period other comprehensive income</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,750,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">1,628,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 22pt; padding-left: 0.5pt">Ending accumulated retirement plans benefit cost</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(230,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(1,980,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Accumulated other comprehensive income (loss), net of taxes</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">32,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(1,435,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The amortization of net actuarial loss and prior service cost for the retirement plans are
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>FAIR VALUE MEASUREMENTS</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Fair Value of Financial Instruments</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The carrying values of cash and cash equivalents, accounts and other receivables, accounts
      payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The estimated fair values of oil and natural gas properties and the asset retirement
      obligation incurred in the drilling of oil and natural gas wells or assumed in the acquisitions of additional oil and natural gas working interests are based on an estimated discounted cash flow model and market assumptions. The significant Level 3
      assumptions used in the calculation of estimated discounted cash flows included future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development, operating and
      asset retirement costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates. See Note 7 for additional information regarding oil and natural gas property acquisitions.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">104</font>&#160;</div>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 36pt;"><font style="font: 10pt 'Times New Roman';">Barnwell estimates the fair value of asset retirement obligations based on the projected discounted future cash
      outflows required to settle abandonment and restoration liabilities. Such an estimate requires assumptions and judgments regarding the existence of liabilities, the amount and timing of cash outflows required to settle the liability, what constitutes
      adequate restoration, inflation factors, credit adjusted discount rates, and consideration of changes in legal, regulatory, environmental and political environments. Abandonment and restoration cost estimates are determined in conjunction with
      Barnwell&#8217;s reserve engineers based on historical information regarding costs incurred to abandon and restore similar well sites, information regarding current market conditions and costs, and knowledge of subject well sites and properties. Asset
      retirement obligation fair value measurements in the current period were Level 3 fair value measurements. As further described in Note 8, the Company recognizes the fair value of a liability for an asset retirement obligation in the period in which
      it is incurred if a reasonable estimate of fair value can be made. Asset retirement obligations are not measured at fair value subsequent to initial recognition.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>DEBT</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Paycheck Protection Program Loan</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On April 28, 2020, the Company, as obligor, entered into a promissory note evidencing an
      unsecured loan in the approximate amount of $147,000 under the PPP pursuant to the CARES Act that was signed into law in March 2020. The note was to mature two years after the date of the loan disbursement with interest at a fixed annual rate of
      1.00%, and with the principal and interest payments deferred until ten months after the last day of the covered period. In April 2021, the Company was notified by the lender of our PPP loan that the entire PPP loan amount and related accrued interest
      was forgiven by the Small Business Administration. As a result of the loan forgiveness, the Company recognized a gain on debt extinguishment of $149,000 during the year ended September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Canada Emergency Business Account Loan</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In the quarter ended December 31, 2020, the Company&#8217;s Canadian subsidiary, Barnwell of
      Canada, received a loan of CAD$40,000 (in Canadian dollars) under the Canada Emergency Business Account (&#8220;CEBA&#8221;) loan program for small businesses. In the quarter ended March 31, 2021, the Company applied for an increase to our CEBA loan and received
      an additional CAD$20,000 for a total loan amount received of CAD$60,000 ($47,000) under the program. The CEBA loan is interest-free with no principal payments required until December 31, 2022, after which the remaining loan balance is converted to a
      three year term loan at 5% annual interest paid monthly. If the Company repays 66.6% of the principal amount prior to December 31, 2022, there will be loan forgiveness of 33.3% up to a maximum of CAD$20,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>LEASES</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company&#8217;s right-of-use (&#8220;ROU&#8221;) assets and lease liabilities at September 30, 2021,
      primarily relate to non-cancelable operating leases for our Hawaii corporate and Canadian office spaces and our leasehold land interest for Lot 4C held by Kaupulehu Developments. Management determines if a contract is or contains a lease at inception
      of the contract or modification of the contract. A contract is or contains a lease if the contract conveys the right to control the use of the asset for a period in exchange for consideration.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Operating lease ROU assets and liabilities are recognized based on the present value of
      future minimum lease payments over the expected lease term at commencement date. The Company&#8217;s leases do not provide a readily determinable implicit rate; therefore, management uses the Company&#8217;s incremental borrowing rate to discount lease payments
      based on information available at lease commencement. Our </font><font style="font: 10pt 'Times New Roman';">lease terms may include options to extend or terminate the lease when it is reasonably certain we will exercise that option. Lease expense
      for minimum lease payments is recognized on a straight-line basis over the expected lease terms. The Company has lease agreements with lease and non-lease components and the non-lease components are excluded in the calculation of the ROU asset and
      lease liability and expensed as incurred. None of the Company&#8217;s lease agreements contain material residual value guarantees or material restrictions or covenants.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"> <br>
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  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">105</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">A ROU asset and corresponding lease liability is not recorded for leases with an initial term
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 36.25pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Leases recorded on the balance sheet consist of the following:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 36.25pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; text-align: center"></td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
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        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">296,000</td>
        <td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; padding-bottom: 1pt">&#160;</td>
        <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td>
        <td style="width: 12%; border-bottom: Black 1pt solid; text-align: right">249,000</td>
        <td style="width: 1%; padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">296,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">249,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">$</td>
        <td style="font-weight: bold; text-align: right">117,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">$</td>
        <td style="text-align: right">111,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 15pt; padding-left: 0.5pt">Operating lease liabilities</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">180,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">143,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 15pt; padding-left: 0.5pt">Total lease liabilities</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">297,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">254,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; text-indent: 37pt; padding-left: 0.5pt">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 37pt; padding-left: 0.5pt">The components of lease expenses are as follows:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt"></td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">2020</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 70%; text-align: left; text-indent: 0in; padding-left: 0.5pt">Operating lease cost</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">130,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">334,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">254,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">69,000</td>
        <td style="text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Variable lease cost</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">103,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 15pt; padding-left: 0.5pt">Total lease cost</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">487,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">403,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="text-align: left; text-indent: 37pt; padding-left: 0.5pt; width: 70%">Supplemental information related to leases is as follows:</td>
        <td style="width: 1%">&#160;</td>
        <td style="text-align: left; width: 1%">&#160;</td>
        <td style="text-align: right; width: 12%">&#160;</td>
        <td style="text-align: left; width: 1%">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="text-align: left; width: 1%">&#160;</td>
        <td style="text-align: right; width: 12%">&#160;</td>
        <td style="text-align: left; width: 1%">&#160;</td>
      </tr>

  </table>
  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td></td>
        <td>&#160;</td>
        <td style="border-bottom: Black 1pt solid">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="5">September 30,</td>
        <td>&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="2">2020</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td colspan="9">Cash paid for amounts included in the measurement of lease liabilities:</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="width: 70%; text-align: left; text-indent: 15pt; padding-left: 0.5pt">Operating cash flows from operating leases</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">133,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">189,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Operating leases:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt">Weighted-average remaining lease term (in years)</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">2.9</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">3.4</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 15pt; padding-left: 0.5pt">Weighted-average discount rate</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">5.19</td>
        <td style="font-weight: bold; text-align: left">%</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">5.85</td>
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      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"></p>
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    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The remaining lease payments for our operating leases as of September 30, 2021, are as
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; text-align: left"><u>Fiscal year ending:</u></td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: right" colspan="2">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 86%; text-align: left; padding-left: 0.125in">2022</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 10%; font-weight: bold; text-align: right">129,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 0.125in">2023</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">97,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 0.125in">2024</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">58,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-left: 0.125in">2025</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">30,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-left: 0.125in">2026</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">7,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-bottom: 1pt; text-align: left; padding-left: 0.125in"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Thereafter through 2027</font></td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">321,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(24,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 2.5pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Present value of lease liabilities</font></td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">297,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;">&#160;</p>
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      1, 2006. Per the lease agreement, the lease payments will remain unchanged pending an appraisal, whereupon the lease rent could be adjusted to fair market value. Barnwell does not know the amount of the new lease payments which could be effective
      upon performance of the appraisal; they may remain unchanged or increase, and Barnwell currently expects the adjustment, if any, to not be material. The future lease payment disclosures above assume the minimum lease payments for leasehold land in
      effect at December 31, 2005 remain unchanged through December 2025, the end of the lease term.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Gain on sale of leased asset</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      drilling segment maintenance and storage yard in Honolulu, Hawaii to an unrelated third party for a $1,100,000 cash payment. As a result of the sale transaction, the Company recognized a gain of $1,336,000, inclusive of a $236,000 gain from the
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>STOCKHOLDERS&#8217; EQUITY (DEFICIT)</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Share-based Compensation</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>2018 Equity Incentive Plan</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company&#8217;s stock option plans are administered by the Compensation Committee of the Board
      of Directors. The stockholder-approved 2018 Equity Incentive Plan provides for the issuance of incentive stock options, nonstatutory stock options, stock options with stock appreciation rights, restricted stock, restricted stock units and performance
      units, qualified performance-based awards, and stock grants to employees, consultants and non-employee members of the Board of Directors. 800,000 shares of Barnwell common stock have been reserved for issuance and as of September 30, 2021, a total of
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Equity-classified Awards</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On February 9, 2021, the Board of Directors of the Company granted options to purchase
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      $3.33, vest annually over three years, and expire in ten years from the date of grant. 60,000 shares of the stock options granted have an exercise price of $3.66 (110% of the closing market price on the date of grant for options granted to
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="border-bottom: Black 1pt solid; text-align: center">Options</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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          Average <br>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 12%; text-align: right">&#160;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 12%; text-align: right">&#160;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
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        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 2.5pt double">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 2.5pt double">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following assumptions were used in estimating the fair value of the equity-classified
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

      <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
        <td style="width: 64%; font: 10pt 'Times New Roman'; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="width: 1%">&#160;</td>
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      <tr style="vertical-align: bottom; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
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        <td>&#160;</td>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
        <td style="font: 10pt 'Times New Roman'; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Expected dividends</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">None</font></td>
        <td>&#160;</td>
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      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
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        <td style="font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">3.5</font></td>
        <td>&#160;</td>
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      </tr>
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        <td style="font: 10pt 'Times New Roman'; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Risk-free interest rate</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0.19%</font></td>
        <td>&#160;</td>
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      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
        <td style="font: 10pt 'Times New Roman'; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Expected forfeitures</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">None</font></td>
        <td>&#160;</td>
        <td style="font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">None</font></td>
      </tr>
      <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: rgb(204, 238, 255);">
        <td style="font: 10pt 'Times New Roman'; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Fair value per share</font></td>
        <td style="font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$2.51</font></td>
        <td>&#160;</td>
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      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The application of alternative assumptions could produce significantly different estimates of
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      expense recognized during the year ended September 30, 2020. Additionally, there was no impact on income taxes for the years ended September 30, 2021 and 2020 due to a full valuation allowance on the related deferred tax asset. As of September 30,
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">108</font>&#160;</div>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>At The Market Offering</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On March 16, 2021, the Company entered into a Sales Agreement (the &#8220;Sales Agreement&#8221;) with
      A.G.P./Alliance Global Partners (&#8220;A.G.P,&#8221;), with respect to the ATM pursuant to which the Company may offer and sell, from time to time, shares of its common stock, par value $0.50 per share, having an aggregate sales price of up to $25 million
      (subject to certain limitations at any time our public float remains under $75 million), through or to A.G.P as the Company&#8217;s sales agent or as principal. Sales of our common stock under the ATM, if any, will be made by any methods deemed to be &#8220;at
      the market offerings&#8221; as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the NYSE American, on any other existing trading market for our Common Stock, or to or through a market maker. Shares of common stock sold
      under the ATM are offered pursuant to the Company&#8217;s Registration Statement on Form S-3 (File No. 333-254365), filed with the Securities and Exchange Commission on March 16, 2021, and declared effective on March 26, 2021 (the &#8220;Registration
      Statement&#8221;), and the prospectus dated March 26, 2021, included in the Registration Statement.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The sale of shares under the ATM began in May 2021 and as of September 30, 2021, the Company
      sold 1,167,987 shares of common stock resulting in net proceeds of $3,784,000 after commissions and fees of $123,000.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>COMMITMENTS AND CONTINGENCIES</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Incentive compensation plan</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In fiscal 2020, Barnwell established an incentive compensation plan to compensate all
      Canadian oil and natural gas segment personnel and an incentive compensation plan to compensate Canadian executive officers. The value of the plans are directly related to our oil and natural gas segment&#8217;s free cash flows and the divestiture of oil
      and natural gas assets. As of September 30, 2021, Barnwell has accrued approximately $325,000 in bonus compensation under these plans and the amount is reported in &#8220;Accrued compensation&#8221; on the Consolidated Balance Sheet at September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Environmental Matters</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Because of the inherent uncertainties associated with environmental assessment and
      remediation activities, future expenses to remediate sites identified in the future, if any, could be incurred. Barnwell&#8217;s management is not currently aware of any significant environmental contingent liabilities requiring disclosure or accrual.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Legal and Regulatory Matters</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell is routinely involved in disputes with third parties that occasionally require
      litigation. In addition, Barnwell is required to maintain compliance with all current governmental controls and regulations in the ordinary course of business. Barnwell&#8217;s management is not aware of any claims or litigation involving Barnwell that are
      likely to have a material adverse effect on its results of operations, financial position or liquidity.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">109</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 36pt;"><font style="font: 10pt 'Times New Roman';">In the year ended September 30, 2019, two of the water wells drilled by the contract drilling segment for one
      customer were determined to not meet the contract specifications for plumbness. Subsequently, in the quarter ended March 31, 2020, the Company executed a separate five-year warranty agreement with the customer for one of the wells that did not meet
      plumbness. Under the terms of the agreement, if the lack of plumbness is determined to be the cause of a pump failure within the warranty period, the Company would be obligated to replace the pump at no cost to the customer. If the Company is unable
      to replace the pump using industry-standard methods, or if there are two or more pump failures attributable to lack of plumbness within the five-year warranty period, the Company would be obligated to drill a new well at no cost to the customer.
      Negotiations with the customer are currently ongoing for the other well that the customer claims did not meet plumbness despite the fact that the independent consulting engineer for the job concluded that the most recent plumbness test, completed
      after the well was cased with casing cemented into place as per the contract, showed that the well meets the plumbness specifications of the contract. Management believes the degrees of deviation for both wells are not impactful to the performance of
      the submersible pumps that will be installed in those wells. Accordingly, no accruals have been recorded as of September 30, 2021 as there is no probable or estimable contingent liability.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 38pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In July 2020, the Staff of the Commission circulated a draft of a proposed recommendation to
      the Commission under which the Company, the water utility, the water utility&#8217;s independent hydrologist firm and the owner of the land on which the two aforementioned water wells were drilled would be assessed penalty fines because each of the wells
      were calculated to have been drilled beyond the depth permitted by the permit. The wells were drilled to a depth to penetrate certain layers of impermeable rock necessary to access the aquifer at the instructions and on the advice of the hydrologist
      hired by the owner of the well. The Company&#8217;s share of the proposed penalties and fines was originally calculated to approximately $1,200,000. Subsequently, the Staff of the Commission acknowledged that one well had not been drilled to a depth beyond
      its permitted depth and the fines on that well were eliminated. Additionally, the fines applicable to the depth of the second well were dropped in lieu of the parties entering into an agreement to perform a water quality study and repurpose a current
      well into a monitoring well. Accordingly, the Company recorded a contingent liability of approximately $300,000 at September 30, 2020 and no subsequent revision to the accrual has been recorded as of September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Other Matters</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell is obligated to pay Nearco Enterprises Ltd. 10.4%, net of non-controlling interests&#8217;
      share, of Kaupulehu Developments&#8217; gross receipts from real estate transactions. The fees represent compensation for promotion and marketing of Kaupulehu Developments&#8217; property and were determined based on the estimated fair value of such services.
      These fees are included in general and administrative expenses.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell is obligated to pay its external real estate legal counsel 1.2%, net of
      non-controlling interests&#8217; share, of all Increment II payments received by Kaupulehu Developments for services provided by its external real estate legal counsel in the negotiation and closing of the Increment II transaction. These fees are included
      in general and administrative expenses.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Kaupulehu Developments is also obligated to pay an amount equal to 0.72% and 0.20% of the
      cumulative net profits of KD II to KD Development and a pool of various individuals, respectively, all of whom are partners of KKM and are unrelated to Barnwell, in compensation for the agreement of these parties to admit the new development partner
      for Increment II. Such compensation will be reflected as the obligation becomes probable and the amount of the obligation can be reasonably estimated.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">110</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>INFORMATION RELATING TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following table details the effect of changes in current assets and liabilities on the
      Consolidated Statements of Cash Flows, and presents supplemental cash flow information:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 374.65pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 374.65pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td>&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="6">Year ended September 30,</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="font-style: italic; text-align: left; text-indent: 0in; padding-left: 0.5pt">Increase (decrease)from changes in:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
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        <td style="width: 70%; text-indent: 11pt; padding-left: 0.5pt">Receivables</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">(814,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">)</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">(598,000</td>
        <td style="width: 1%; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 11pt; padding-left: 0.5pt">Income tax receivable</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">457,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">129,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; text-indent: 11pt; padding-left: 0.5pt">Other current assets</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(920,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">260,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 11pt; padding-left: 0.5pt">Accounts payable</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(746,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">924,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">668,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">203,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 11pt; padding-left: 0.5pt">Other current liabilities</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(796,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(470,000</td>
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      </tr>
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        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">(Decrease) increase from changes in current assets and liabilities</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(2,151,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">448,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="font-style: italic; text-align: left; text-indent: 0in; padding-left: 0.5pt">Supplemental disclosure of cash flow information:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
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        <td style="text-align: left; text-indent: 11pt; padding-left: 0.5pt">Cash paid (received) during the year for:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 22pt; padding-left: 0.5pt">Income taxes refunded, net</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(303,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(166,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="font-style: italic; text-align: left; text-indent: 0in; padding-left: 0.5pt">Supplemental disclosure of non-cash investing activities:</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 22pt">Canadian income tax withholding on proceeds from the sale of oil and natural gas properties</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">598,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Capital expenditure accruals related to oil and natural gas acquisition and development
      increased $346,000 and $435,000 during the years ended September 30, 2021 and 2020, respectively. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations increased $811,000 during the year ended
      September 30, 2021 and decreased $52,000 during the year ended September 30, 2020.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>RELATED PARTY TRANSACTIONS</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Kaupulehu Developments is entitled to receive payments from the sales of lots and/or
      residential units by KD I and KD II. KD I and KD II are part of the Kukio Resort Land Development Partnerships in which Barnwell holds indirect 19.6% and 10.8% non-controlling ownership interests, respectively, accounted for under the equity method
      of investment. The percentage of sales payments are part of transactions which took place in 2004 and 2006 where Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I&#8217;s and KD II&#8217;s predecessors in interest,
      respectively, which was prior to Barnwell&#8217;s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort Land Development Partnerships. Changes to the arrangement above,
      effective March 7, 2019, are discussed in Note 4.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the year ended September 30, 2021, Barnwell received $1,738,000 in percentage of sales
      payments from KD I from the sale of eight lots within Phase II of Increment I. During the year ended September 30, 2020, Barnwell received $325,000 in percentage of sales payments from KD I from the sale of two lots within Phase II of Increment I.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">111</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Mr. Colin R. O&#8217;Farrell, a member of the Board of Directors of the Company effective July 12,
      2021, is the sole member of Four Pines Operating LLC which owns a 25% interest in Gros Ventre. In February 2021, Gros Ventre and BOK, a wholly-owned subsidiary of Barnwell, entered into the Agreement of Teton Barnwell, an entity formed for the
      purpose of directly investing in oil and natural gas exploration and development in Oklahoma. Under the terms of the Agreement, Gros Ventre makes no capital contributions and receives 2% of the profits of Teton Barnwell. Additionally, as the manager
      of Teton Barnwell, Gros Ventre is paid an annual asset management fee equal to 1% of the cumulative capital contributions made to Teton Barnwell as compensation for its management services.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>SUBSEQUENT EVENTS</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Kukio Resort Land Development Partnerships and Sale of Interest in Leasehold Land</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Subsequent to September 30, 2021, Kaupulehu Developments received percentage of sales
      payments totaling $600,000 from the sale of three lots within Phase II of Increment I. Financial results from the receipt of these payments will be reflected in Barnwell&#8217;s quarter ending December 31, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Additionally, subsequent to September 30, 2021, Barnwell received net cash distributions in
      the amount of $1,075,000 from the Kukio Resort Land Development Partnerships. Financial results of this distribution will be reflected in Barnwell&#8217;s quarter ending December 31, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Contract Segment Drilling Rig and Equipment</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Subsequent to September 30, 2021, the Company sold a contract segment drilling rig and
      related ancillary equipment for proceeds of $687,000, net of related costs, which is equivalent to its net carrying value at September 30, 2021. Financial results from this sale will be reflected in Barnwell&#8217;s quarter ending December 31, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">22.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>SUMMARY OF SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Disclosure is not required as Barnwell qualifies as a smaller reporting company.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">23.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>SUPPLEMENTARY OIL AND NATURAL GAS INFORMATION (UNAUDITED)</u></font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following tables summarize information relative to Barnwell&#8217;s oil and natural gas
      operations, which are conducted in Canada and in the U.S state of Oklahoma. 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.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">112</font>&#160;</div>
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      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>(A)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Oil and Natural Gas Reserves</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      proved reserves of oil and natural gas liquids and natural gas, which are all in Canada. Proved oil, natural gas liquids and natural gas reserves located in the U.S. state of Oklahoma are not significant and are therefore not included in the table
      below. 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. 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.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">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
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

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        <td>&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="width: 12%; text-align: right">1,419,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="width: 12%; text-align: right">4,520,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(740,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(1,746,000</td>
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        <td>&#160;</td>
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        <td style="text-align: right">(1,041,000</td>
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        <td>&#160;</td>
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        <td style="text-align: right">68,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">628,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">)</td>
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        <td>&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td>&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td>&#160;</td>
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        <td>&#160;</td>
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        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">289,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
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        <td style="text-align: left">&#160;</td>
      </tr>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 11pt; padding-left: 0.5pt">Less production</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(169,000</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(690,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,913,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,142,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="font-weight: bold; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Proved Developed Reserves, September 30, 2021</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">636,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,913,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,138,000</td>
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        <td style="font-weight: bold; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Proved Undeveloped Reserves, September 30, 2021</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">4,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">4,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
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  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">113</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>(B)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Capitalized Costs Relating to Oil and Natural Gas Producing Activities</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">All capitalized costs relating to oil and natural gas producing activities in Canada and the
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; font-weight: bold"></td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center" colspan="9">September 30, 2021</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center" colspan="2">Canada</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">United States</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center" colspan="2">Total</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 55%; text-align: left; text-indent: 0in; padding-left: 0.5pt">Proved properties</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">58,273,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">217,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">58,490,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Unproved properties</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">962,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">962,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 11pt; padding-left: 0.5pt">Total capitalized costs</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">58,273,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">1,179,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">59,452,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Accumulated depletion, depreciation, and impairment</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">56,053,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">14,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">56,067,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Net capitalized costs</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,220,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,165,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,385,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td colspan="13"></td>
      </tr>

  </table>
  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt"></td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="9">September 30, 2020</td>
        <td style="padding-bottom: 1pt">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="2">Canada</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">United States</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: center" colspan="2">Total</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 55%; text-align: left; text-indent: 0in; padding-left: 0.5pt">Proved properties</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">64,142,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">64,142,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Unproved properties</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 11pt; padding-left: 0.5pt">Total capitalized costs</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">64,142,000</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">64,142,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Accumulated depletion, depreciation, and impairment</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">61,839,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">61,839,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Net capitalized costs</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">2,303,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 2.5pt double">&#8212;</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">2,303,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
      </tr>

  </table>
  <p style="margin: 0">&#160;</p>
  <p style="font: italic 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">(C) Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development</p>
  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; font-weight: bold"></td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center" colspan="9">Year ended September 30, 2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">Canada</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">United States</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">Total</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">1,032,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">70,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">1,102,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-indent: 11pt; padding-left: 0.5pt">Unproved</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">255,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">255,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">563,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,108,000</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,671,000</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Total</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,850,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,178,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,028,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
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  </table>
  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt"></td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">242,000</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
        <td style="width: 1%; text-align: left">$</td>
        <td style="width: 12%; text-align: right">&#8212;</td>
        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="width: 12%; text-align: right">242,000</td>
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        <td style="text-indent: 11pt; padding-left: 0.5pt">Unproved</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#8212;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">2,857,000</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">2,857,000</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">3,099,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 2.5pt double"><font style="font-family: 'Times New Roman'; font-size: 10pt;"> &#8212;</font></td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">3,099,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">114</font>&#160;</div>
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      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.95pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>(D)&#160;&#160;&#160;&#160;&#160; Results of Operations for Oil and Natural Gas Producing Activities</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.95pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; font-weight: bold"></td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center" colspan="9">Year ended September 30, 2021</td>
        <td style="padding-bottom: 1pt; font-weight: bold">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"></td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center" colspan="2">Canada</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center" colspan="2">United States</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid" colspan="2">Total</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: center">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="width: 1%; font-weight: bold; text-align: left">$</td>
        <td style="width: 12%; font-weight: bold; text-align: right">10,136,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
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        <td style="width: 12%; font-weight: bold; text-align: right">118,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
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        <td style="width: 12%; font-weight: bold; text-align: right">10,254,000</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(6,532,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: left">)</td>
        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">(6,556,000</td>
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        <td style="text-indent: 0in; padding-left: 0.5pt">Depletion</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(631,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: left">)</td>
        <td style="font-weight: bold">&#160;</td>
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        <td style="font-weight: bold; text-align: right">(645,000</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Reduction of carrying value of oil and natural gas properties</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(630,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(630,000</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">2,343,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">80,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">2,423,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Estimated income tax expense (2)</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&#8212;</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Results of operations (1)</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,343,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">80,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,423,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-left: 0.5pt">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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  <p style="margin: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt"></td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid">&#160;</td>
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      <tr style="vertical-align: bottom">
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="padding-bottom: 1pt; text-align: center">&#160;</td>
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        <td style="width: 1%; text-align: left">&#160;</td>
        <td style="width: 1%; font-weight: bold">&#160;</td>
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        <td style="width: 12%; font-weight: bold; text-align: right">&#8212;</td>
        <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
        <td style="width: 1%">&#160;</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(4,850,000</td>
        <td style="text-align: left">)</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(1,747,000</td>
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(1,747,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td>&#160;</td>
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        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
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        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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        <td style="border-bottom: Black 2.5pt double; text-align: right">(4,230,000</td>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"></p>
  <!-- Field: Rule-Page -->
  <div align="LEFT" style="margin-top: 3pt; margin-bottom: 3pt">
    <div style="font-size: 1pt; border-top: Black 1pt solid; width: 20%">&#160;</div>
  </div>
  <!-- Field: /Rule-Page -->
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(1) &#160;&#160;&#160;&#160;Before gain on sale of oil and natural gas properties, general and administrative expenses, interest expense, and foreign
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      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, 2021 and 2020 to the future pre-tax net cash flows
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"> <br>
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    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">115</font>&#160;</div>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt; text-align: right"></td>
        <td style="padding-bottom: 1pt; text-align: right">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td>
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      <tr style="vertical-align: bottom">
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        <td style="width: 12%; font-weight: bold; text-align: right">36,130,000</td>
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      </tr>
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        <td style="font-weight: bold; text-align: right">(25,323,000</td>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(17,860,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Future development costs</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(240,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(73,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Future income tax expenses</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(995,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
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        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(92,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Future net cash flows excluding abandonment, decommissioning and</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">9,572,000</td>
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        <td>&#160;</td>
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        <td style="text-align: right">2,401,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Future abandonment, decommissioning and reclamation</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(14,525,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(13,055,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(4,953,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(10,654,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">10% annual discount for timing of cash flows</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">7,598,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">8,969,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">Standardized measure of discounted future net cash flows</td>
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        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,645,000</td>
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        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
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        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>Changes in the Standardized Measure of Discounted Future Net Cash Flows</u></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="padding-bottom: 1pt"></td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid">&#160;</td>
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      <tr style="vertical-align: bottom">
        <td style="text-align: center">&#160;</td>
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      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td>&#160;</td>
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      </tr>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">&#160;</td>
        <td style="text-align: left">&#160;</td>
      </tr>
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        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(1,876,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(882,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">467,000</td>
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      </tr>
      <tr style="vertical-align: bottom; background-color: White">
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        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">1,305,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Changes in future development costs</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">&#8212;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">7,773,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Revisions of previous quantity estimates</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">4,217,000</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(10,274,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Net change in income taxes</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(845,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">288,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-indent: 0in; padding-left: 0.5pt">Accretion of discount</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(176,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">230,000</td>
        <td style="text-align: left">&#160;</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; text-indent: 0in; padding-left: 0.5pt">Other - changes in the timing of future production and other</td>
        <td style="font-weight: bold">&#160;</td>
        <td style="font-weight: bold; text-align: left">&#160;</td>
        <td style="font-weight: bold; text-align: right">(55,000</td>
        <td style="font-weight: bold; text-align: left">)</td>
        <td>&#160;</td>
        <td style="text-align: left">&#160;</td>
        <td style="text-align: right">(63,000</td>
        <td style="text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Other - net change in Canadian dollar translation rate</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(27,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(2,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.5pt">Net change</td>
        <td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,330,000</td>
        <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 1pt">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
        <td style="border-bottom: Black 1pt solid; text-align: right">(3,995,000</td>
        <td style="padding-bottom: 1pt; text-align: left">)</td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="padding-bottom: 2.5pt; text-indent: 0in; padding-left: 0.5pt">End of year</td>
        <td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">2,645,000</td>
        <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
        <td style="padding-bottom: 2.5pt">&#160;</td>
        <td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
        <td style="border-bottom: Black 2.5pt double; text-align: right">(1,685,000</td>
        <td style="padding-bottom: 2.5pt; text-align: left">)</td>
      </tr>

  </table>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">116</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a016_v1"></a>ITEM 9. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">None.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b><a name="a017_v1"></a>ITEM 9A. &#160;&#160;&#160;&#160;&#160;&#160;CONTROLS AND PROCEDURES</b></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Disclosure Controls and Procedures</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">We have established disclosure controls and procedures to ensure that material information
      relating to Barnwell, including its consolidated subsidiaries, is made known to the officers who certify Barnwell&#8217;s financial reports and to other members of executive management and the Board of Directors.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As of September 30, 2021, an evaluation was carried out by Barnwell&#8217;s Chief Executive Officer
      and Chief Financial Officer of the effectiveness of Barnwell&#8217;s disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that Barnwell&#8217;s disclosure controls and procedures (as
      defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) were effective as of September 30, 2021 to ensure that information required to be disclosed by Barnwell in reports that it files or submits under the Securities
      Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities Exchange Act of 1934 and the rules thereunder.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Management&#8217;s Annual Report on Internal Control Over Financial Reporting</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell&#8217;s management is responsible for establishing and maintaining adequate internal
      control over financial reporting for Barnwell, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Under the supervision and with the participation of Barnwell&#8217;s management, including our Chief
      Executive Officer and Chief Financial Officer, Barnwell conducted an evaluation of the effectiveness of its internal control over financial reporting using criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission
      (COSO) in the report entitled <i>Internal Control &#8212; Integrated Framework (2013)</i> (the &#8220;COSO Framework&#8221;). Based on this evaluation under the COSO Framework, management concluded that its internal control over financial reporting was effective as
      of September 30, 2021.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">This Annual Report on Form 10-K does not include an attestation report of our independent
      registered public accounting firm regarding internal control over financial reporting. Pursuant to Item 308(b) of Regulation S-K, management&#8217;s report is not subject to attestation by our independent registered public accounting firm because the
      Company is neither an &#8220;accelerated filer&#8221; nor a &#8220;large accelerated filer&#8221; as those terms are defined by the SEC.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Changes in Internal Control Over Financial Reporting</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">There was no change in Barnwell&#8217;s internal control over financial reporting during the
      quarter ended September 30, 2021 that materially affected, or is reasonably likely to materially affect, Barnwell&#8217;s internal control over financial reporting.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a018_v1"></a>ITEM 9B. &#160;&#160;&#160;&#160;&#160;&#160;OTHER INFORMATION</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">None.<br style="clear: both">
    </font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">117</font>&#160;</div>
    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
      <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
  </div>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a019_v1"></a>PART III </font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a020_v1"></a>ITEM 10. &#160;&#160;&#160;&#160;&#160;&#160;&#160;DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The information required is omitted pursuant to General Instruction G(3) of Form 10-K, since
      the Registrant will file its definitive proxy statement for the Annual Meeting of Stockholders no later than 120 days after the close of its fiscal year ended September 30, 2021, which proxy statement is incorporated herein by reference.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell adopted a Code of Ethics that applies to its Chief Executive Officer and the Chief
      Financial Officer. This Code of Ethics has been posted on Barnwell&#8217;s website at www.brninc.com.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a021_v1"></a>ITEM 11.&#160;&#160;&#160;&#160;&#160;&#160;&#160; EXECUTIVE COMPENSATION</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The information required is omitted pursuant to General Instruction G(3) of Form 10-K, since
      the Registrant will file its definitive proxy statement for the Annual Meeting of Stockholders no later than 120 days after the close of its fiscal year ended September 30, 2021, which proxy statement is incorporated herein by reference.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a022_v1"></a>ITEM 12. &#160;&#160;&#160;&#160;&#160;&#160;&#160;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
      MATTERS</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The information required is omitted pursuant to General Instruction G(3) of Form 10-K, since
      the Registrant will file its definitive proxy statement for the Annual Meeting of Stockholders no later than 120 days after the close of its fiscal year ended September 30, 2021, which proxy statement is incorporated herein by reference.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><i>Equity Compensation Plan Information</i></font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The following table provides information about Barnwell&#8217;s common stock that may be issued
      upon exercise of options and rights under Barnwell&#8217;s existing equity compensation plan as of September 30, 2021:</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <table cellspacing="0" cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt 'Times New Roman';">

      <tr style="vertical-align: bottom">
        <td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Plan Category</font></td>
        <td style="text-align: center; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2">
          <p style="margin-top: 0; margin-bottom: 0"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a) <br>
              Number of</font></p>
          <p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt 'Times New Roman';">securities<br>
              to be issued</font></p>
          <p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt 'Times New Roman';">upon exercise<br>
              of outstanding<br>
              options, warrants<br>
              and rights</font></p>
        </td>
        <td style="text-align: center; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: center; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b) <br>
            Weighted-average <br>
            price of <br>
            outstanding <br>
            options,<br>
            warrants<br>
            and rights</font></td>
        <td style="text-align: center; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: center; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: center; border-bottom: Black 1pt solid" colspan="2"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c) <br>
            Number of securities <br>
            remaining available <br>
            for future issuance <br>
            under equity <br>
            compensation plans <br>
            (excluding securities <br>
            reflected in column (a))</font></td>
        <td style="text-align: center; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
        <td style="width: 55%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Equity compensation plans approved by security holders</font></td>
        <td style="width: 1%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 12%; text-align: right"><font style="font-family: 'Times New Roman'; font-size: 10pt;">615,000</font></td>
        <td style="width: 1%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$</font></td>
        <td style="width: 12%; text-align: right"><font style="font-family: 'Times New Roman'; font-size: 10pt;">3.36</font></td>
        <td style="width: 1%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 1%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 12%; text-align: right"><font style="font-family: 'Times New Roman'; font-size: 10pt;">135,000</font></td>
        <td style="width: 1%; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: bottom; background-color: White">
        <td style="text-align: left; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Equity compensation plans not approved by security holders</font></td>
        <td style="padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="text-align: left; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="text-align: left; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8212;</font></td>
        <td style="text-align: left; padding-bottom: 1pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="text-align: left; padding-bottom: 2.5pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="padding-bottom: 2.5pt"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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    <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a023_v1"></a>ITEM 13. &#160;&#160;&#160;&#160;&#160;&#160;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The information required is omitted pursuant to General Instruction G(3) of Form 10-K, since
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a024_v1"></a>ITEM 14. &#160;&#160;&#160;&#160;&#160;&#160;PRINCIPAL ACCOUNTING FEES AND SERVICES</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The information required is omitted pursuant to General Instruction G(3) of Form 10-K, since
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">119</font>&#160;</div>
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  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">PART IV </font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a026_v1"></a>ITEM 15. &#160;&#160;&#160;&#160;&#160;&#160;&#160;EXHIBITS, FINANCIAL STATEMENT SCHEDULES</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial Statements</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 28pt; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Report of Independent Registered Public Accounting Firm - WEAVER AND TIDWELL, L.L.P.</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Consolidated Balance Sheets - September 30, 2021 and 2020</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Consolidated Statements of Operations - for the years ended September 30, 2021 and 2020</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 28pt; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Consolidated Statements of Comprehensive Income (Loss) - for the years ended September 30, 2021 and 2020</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 28pt; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Consolidated Statements of Equity (Deficit) - for the years ended September 30, 2021 and 2020</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Consolidated Statements of Cash Flows - for the years ended September 30, 2021 and 2020</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Notes to Consolidated Financial Statements</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Schedules have been omitted because they were not applicable, not required, or the
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 28pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font: 10pt 'Times New Roman';"></font></p>
  <table cellspacing="0" cellpadding="0" style="font: 10pt 'Times New Roman'; width: 100%; border-collapse: collapse;">

      <tr style="vertical-align: top">
        <td style="width: 8%; text-align: center; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Exhibit <br>
            Number</font></td>
        <td style="width: 2%">&#160;</td>
        <td style="width: 90%; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Description</font></td>
      </tr>
      <tr style="vertical-align: top">
        <td style="text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td>&#160;</td>
        <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">3.1</font></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Certificate of Incorporation, as amended (1)</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">3.2</font></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Amended and Restated By-Laws (2)</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">4.0</font></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Form of the Registrant&#8217;s certificate of common stock, par value $.50 per share (3)</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.1</font></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Barnwell Industries, Inc. Employees&#8217; Pension Plan (restated as of October 1, 1989) (4)</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.2</font></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Form of Purchase and Sale Agreement dated February 13, 2004 by and between Kaupulehu Developments and WB KD Acquisition, LLC (5)</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.3&#160;</font></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Agreement dated May 27, 2009 which became effective June 23, 2009 by and between Kaupulehu Developments and WB KD Acquisition, LLC and
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      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.4</font></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Limited Liability Limited Partnership Agreement of KD Kona 2013 LLLP dated November 27, 2013 (7)</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.5</font></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Limited Liability Limited Partnership Agreement of KKM Makai, LLLP dated November 27, 2013 (8)</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.6</font></td>
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        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Agreement with KD Kaupulehu, LLLP to Release Retained Rights, dated as of March 7, 2019, between Kaupulehu Developments and KD
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  </table>
  <p style="margin: 0">&#160;</p>
  <p style="margin: 0"></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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      <tr style="vertical-align: top;">
        <td style="text-align: center; width: 8%; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.7</font></td>
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        <td style="width: 90%; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Agreement with Respect to Retained Rights, dated as of March 7, 2019 between Kaupulehu Developments and KD Acquisition II,
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      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; width: 8%; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 2%; background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="width: 90%; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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      <tr style="vertical-align: top;">
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      <tr style="vertical-align: top;">
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  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a027_v1"></a>SIGNATURES</font></p>
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        <td style="text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="font: 10pt 'Times New Roman'; width: 100%; border-collapse: collapse;">

      <tr style="vertical-align: top">
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        <td style="width: 52%; font-size: 10pt"><font style="font-family: 'Times New Roman';">&#160;</font></td>
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        <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">&#160;</font></td>
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      <tr style="vertical-align: top">
        <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">Date: December 21, 2021</font></td>
        <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">&#160;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="font: 10pt 'Times New Roman'; width: 100%; border-collapse: collapse;">

      <tr style="vertical-align: top">
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        <td style="width: 52%; font-size: 10pt"><font style="font-family: 'Times New Roman';">&#160;</font></td>
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      <tr style="vertical-align: top">
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        <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">&#160;</font></td>
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      <tr style="vertical-align: top">
        <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">Date: December 21, 2021</font></td>
        <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">&#160;</font></td>
      </tr>

  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="font: 10pt 'Times New Roman'; width: 100%; border-collapse: collapse;">

      <tr style="vertical-align: top">
        <td style="width: 48%; border-bottom: Black 1pt solid">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-right: 0px; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">/s/ Philip J. McPherson</font></p>
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        <td style="width: 4%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 48%; border-bottom: Black 1pt solid">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-right: 0px; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">/s/ Colin R. O&#8217;Farrell</font></p>
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      <tr style="vertical-align: top">
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        <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">Colin R. O&#8217;Farrell, Director</font></td>
      </tr>
      <tr style="vertical-align: top">
        <td>
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        <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td>
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-right: 0px; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Date: December 21, 2021</font></p>
        </td>
      </tr>

  </table>
  <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
  <table cellspacing="0" cellpadding="0" style="font: 10pt 'Times New Roman'; width: 100%; border-collapse: collapse;">

      <tr style="vertical-align: top">
        <td style="width: 48%; font-size: 10pt; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman';">/s/ Bradley M. Tirpak</font></td>
        <td style="width: 4%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="width: 48%; font-size: 10pt; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman';">/s/ Doug N. Woodrum</font></td>
      </tr>
      <tr style="vertical-align: top">
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        <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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      </tr>
      <tr style="vertical-align: top">
        <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">Date: December 21, 2021</font></td>
        <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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      </tr>

  </table>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
    <div style="TEXT-ALIGN: center"><font style="font-size: 8pt; font-family: 'Times New Roman'; font-weight: normal; color: rgb(0, 0, 0); font-style: normal;" id="DSPFPageNumber">123</font>&#160;</div>
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  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><a name="a028_v1"></a>INDEX TO EXHIBITS</font></p>
  <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"></p>
  <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 16pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"></font></p>
  <table cellspacing="0" cellpadding="0" style="font: 10pt 'Times New Roman'; width: 100%; border-collapse: collapse;">

      <tr style="vertical-align: top">
        <td style="width: 9%; text-align: center; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Exhibit</font><br>
          <font style="font-family: 'Times New Roman'; font-size: 10pt;">Number</font></td>
        <td style="width: 1%; padding-bottom: 1pt">&#160;</td>
        <td style="width: 90%; text-align: left; vertical-align: bottom; border-bottom: Black 1pt solid">
          <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; text-align: center; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Description</font></p>
        </td>
      </tr>
      <tr style="vertical-align: top">
        <td style="text-align: center">&#160;</td>
        <td>&#160;</td>
        <td>&#160;</td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465913090370/a13-20729_1ex3d1.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">3.1</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465913090370/a13-20729_1ex3d1.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Certificate of Incorporation, as amended
              (1)</font></a></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000089968120000004/p20-0003_ex31.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">3.2</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000089968120000004/p20-0003_ex31.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Amended and Restated By-Laws (2)</font></a></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">4.0</font></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Form of the Registrant&#8217;s certificate of common stock, par value $.50 per share (3)</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
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        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Barnwell Industries, Inc. Employees&#8217; Pension Plan (restated as of October 1, 1989) (4)</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465904004323/a04-2443_1ex2d1.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.2</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465904004323/a04-2443_1ex2d1.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Form of Purchase and Sale Agreement dated
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      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465909049518/a09-18944_1ex10d1.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.3</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465909049518/a09-18944_1ex10d1.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Agreement dated May 27, 2009 which
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      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465914010363/a14-2693_1ex10d7.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.4</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465914010363/a14-2693_1ex10d7.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Limited Liability Limited Partnership
              Agreement of KD Kona 2013 LLLP dated November 27, 2013 (7)</font></a></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465914010363/a14-2693_1ex10d8.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.5</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000110465914010363/a14-2693_1ex10d8.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Limited Liability Limited Partnership
              Agreement of KKM Makai, LLLP dated November 27, 2013 (8)</font></a></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000001004819000011/exhibit101agreementtorelea.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.6</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000001004819000011/exhibit101agreementtorelea.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Agreement with KD Kaupulehu,
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      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000001004819000011/ex102retainedright.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.7</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000001004819000011/ex102retainedright.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Agreement with Respect to Retained
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      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000001004821000014/exhibit101_033121.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.8</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="http://www.sec.gov/Archives/edgar/data/10048/000001004821000014/exhibit101_033121.htm"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Form of Option Agreement (11)</font></a></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="#ExhibitNo.10.9"><font style="font-family: 'Times New Roman'; font-size: 10pt;">10.9</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="#ExhibitNo.10.9"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Asset Purchase and Sale Agreement, dated July 8, 2021, between Barnwell of Canada, Limited and Tourmaline Oil
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      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
        <td style="background-color: rgb(255, 255, 255);">&#160;</td>
        <td style="background-color: rgb(255, 255, 255);"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
      </tr>
      <tr style="vertical-align: top;">
        <td style="text-align: center; background-color: rgb(204, 238, 255);"><a href="#ExhibitNo.21"><font style="font-family: 'Times New Roman'; font-size: 10pt;">21</font></a></td>
        <td style="background-color: rgb(204, 238, 255);">&#160;</td>
        <td style="background-color: rgb(204, 238, 255);"><a href="#ExhibitNo.21"><font style="font-family: 'Times New Roman'; font-size: 10pt;">List of Subsidiaries</font></a></td>
      </tr>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Exhibit No. 10.9<a name="ExhibitNo.10.9"><!--Anchor--></a></font></p>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">THIS AGREEMENT made as of July 8, 2021.</font></p>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BETWEEN:</font></p>
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              corporation or body politic; and for this purpose a corporation shall be deemed to be controlled by those persons, corporations or bodies politic who own or effectively control, other than by way of security only, sufficient voting shares of
              the corporation (whether directly through the ownership of shares of the corporation or indirectly through the ownership of shares of another corporation which owns shares of the corporation), provided that a partnership which is a Party and
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              working interest, a right to convert a royalty to a working interest on payout of a well, a penalty or forfeiture arising as a result of non-participation in a drilling or other operation and any other adverse claim or encumbrance, whether
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              treatment, stabilization, disposition, handling, transportation, release, emission or discharge of Petroleum Substances, oilfield wastes, water, hazardous substances, environmental contaminants and all other substances and materials regulated
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the right reserved to or vested in any municipality or Governmental Authority by the terms of any lease, licence,
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    <p style="margin: 0">&#160;</p>
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          <td style="font: 10pt 'Times New Roman'; width: 0.5in;">&#160;</td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';">Law, to terminate any such lease, licence, franchise, grant or permit or to require annual or other periodic payments as a condition of the continuance thereof;</td>
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        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">but, in each case, only insofar as the foregoing relate to the Lands or any lands
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8220;<b>Prime Rate</b>&#8221; means the rate of interest equal to the annual rate of interest announced from time to time by the main Calgary branch of the Canadian Imperial Bank of
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-align: justify; text-indent: -0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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              General Conveyance, that are reasonably required or desirable, in accordance with normal oil and gas industry practices, to convey, assign and transfer the Assets to Purchaser or Purchaser&#8217;s nominee and to make Purchaser or Purchaser&#8217;s
              nominee a party to, and to novate Purchaser or Purchaser&#8217;s nominee into, the Title and Operating Documents in the place and stead of Vendor with respect to the Assets.</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8220;<b>Surface Rights</b>&#8221; means all rights to occupy, cross or otherwise use or enjoy the surface of the Lands and any lands pooled or unitized therewith or any other lands: (i)
              upon which the Tangibles are situate, (ii) used in connection with the ownership or operation of the Petroleum and Natural Gas Rights, the Tangibles or the Wells, or (iii) used to gain access to any of the Lands (or any lands pooled or
              unitized therewith), the Tangibles or the Wells.</font></td>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-align: justify; text-indent: -0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(ap)</font></td>
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              facilities, used or intended for use in, or otherwise useful in exploiting any Petroleum Substances from or within the Lands (whether the Petroleum and Natural Gas Rights to which such Petroleum Substances are allocated are owned by Vendor or
              by others or both) and located within, upon or in the vicinity of the Lands (or any lands pooled or unitized therewith), including all gas plants, oil batteries, buildings, production equipment, pipelines, pipeline connections, meters,
              generators, motors, compressors, treaters, dehydrators, separators, pumps, tanks, boilers, communication equipment and all salvageable equipment pertaining to any Wells listed in Part 2 of <b>Schedule A</b>.</font></td>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-align: justify; text-indent: -0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 24pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8220;<b>Thirteenth Month Adjustment</b>&#8221; means the accounting procedure performed annually by any operator of certain of the Assets for the purpose of redistributing operating
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-align: justify; text-indent: -0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">all leases, subleases, permits and licences (and any replacements, renewals or extensions thereof or leases or other
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 96pt; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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              property and assets;</font></td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">service agreements for the treating, gathering, storage, transportation or processing of Petroleum Substances or other
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        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8220;<b>Transaction</b>&#8221; means the purchase of the Assets by Purchaser from Vendor on and subject to the terms and conditions, and as more fully described, in this Agreement.</font></td>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-align: justify; text-indent: -0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#8221;<b>Wells</b>&#8220; means all producing, shut-in, water source, observation, disposal, injection, abandoned, suspended and similar wells, identified or described in Part 2 of <b>Schedule



                A</b>.</font></td>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-align: justify; text-indent: -0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Schedules</b></font></td>
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          <td colspan="3"><font style="font: 10pt 'Times New Roman';">Appended to this Agreement are the following Schedules:</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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          <td style="width: 0.75in"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Schedule A </font></td>
          <td style="width: 0.25in; text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;">- </font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Part 1: Lands, Petroleum and Natural Gas Rights</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Part 2: Wells</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Part 3: Facilities</font></td>
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          <td style="text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;">- </font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Schedule C </font></td>
          <td style="text-align: center"><font style="font-family: 'Times New Roman'; font-size: 10pt;">- </font></td>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">These Schedules are incorporated into and form part of this Agreement. If any term or
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The use of &#8220;Article&#8221;, &#8220;Clause&#8221;, &#8220;sub-clause&#8221;, &#8220;paragraph&#8221; and &#8220;Schedule&#8221;, whether or not followed by a number or letter
              or combination thereof, refers to the applicable article, clause, subclause, paragraph or schedule of or to this Agreement.</font></td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The division of this Agreement into articles, clauses, sub-clauses, paragraphs and other subdivisions and the insertion
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Any reference in this Agreement to a monetary amount, including the use of the term &#8220;Dollar&#8221; or the symbol &#8220;$&#8221;, shall
              mean the lawful currency of Canada unless the contrary is specified or provided for elsewhere in this Agreement. All payments to be made pursuant to this Agreement shall be made in immediately available funds by wire, certified cheque or bank
              draft.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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              day.</font></td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="za5144cd879834064b35a15e344137fef" style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Where any payment or calculation is to be made, or any other action is to be taken, on or as of a day that is not a
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        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Unless otherwise specified, time periods within or following which any payment is to be made or any act is to be done
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        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Meaning of &#8220;Gross Negligence&#8221; and &#8220;Wilful Misconduct&#8221;</b></font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 24pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 24pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Knowledge</b></font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 24pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In this Agreement, the stated knowledge of a Party consists only of the actual knowledge
        or awareness, as the case may be, after reasonable inquiry of the current officers and senior managers of such Party, whose normal responsibilities relate to the matter in question in the course of their normal duties, and does not include
        knowledge, information or belief and awareness of any other Person or any constructive or imputed knowledge. Notwithstanding the foregoing, a Party does not have any obligation to make inquiry of Third Parties or the files and records of any Third
        Party or Governmental Authority in connection with representations and warranties that are made to its knowledge.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 24pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.6</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Withholding Tax</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 24pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z4c44f685b32e44e9ae7703b183b31528" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Each Party hereby authorizes the other Party to take any actions necessary to ensure full compliance with section 116
              and all other provisions of the <i>Income Tax Act</i> (Canada) to the extent such compliance is made necessary by the transaction contemplated herein, and shall provide to the other Party all reasonable assistance in respect thereof.
              Specifically, Purchaser shall authorize and provide all necessary assistance to Vendor to enable Vendor to obtain, any and all correct and accurate certificates of compliance which may be required pursuant to subsection 116(4) of the <i>Income




                Tax Act</i> (Canada).</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><br>
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          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor and Purchaser acknowledge that pursuant to section 116 of the <i>Income Tax Act </i>(Canada) Purchaser is
              required to, and is authorized by Vendor to, withhold at Closing one half (1/2) of the Purchase Price (the &#8220;<b>Withholding Amount</b>&#8221;). As soon as reasonably possible after Closing, Purchaser shall remit the Withholding Amount to the Canada
              Revenue Agency in accordance with section 116 of the <i>Income Tax Act</i>.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor acknowledges that it may be required to provide notice to the Canada Revenue Agency in respect of the sale of the
              Assets within ten (10) days of the date of such sale to avoid the imposition of a monetary penalty and, in addition, may be required to file a Canadian income tax return for the taxation year that includes the date of the sale of the Assets.
              Vendor shall fully comply on a timely basis with any such Canada Revenue Agency obligations, and shall be liable for and shall save, indemnify and hold Purchaser harmless from any loss, harm, prejudice or injury of any kind to Purchaser
              resulting from its failure to fully comply on a timely basis with such obligations.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z96a0c5fd27c9443a94a1a7cb5de513b0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">The obligations of the Parties pursuant to this Clause 1.6 shall survive Closing.</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0.5in"><br>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(e)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor&#8217;s Canada Revenue Agency assigned tax account number is 100401702RC0001.</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 60pt; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.7</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Negotiated Transaction</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 24pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Parties have participated jointly in the negotiation and drafting of this Agreement
        and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as having been jointly drafted by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by
        virtue of the authorship of any provision of this Agreement.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 24pt; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; text-align: center; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Article 2&#160;</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>PURCHASE AND SALE AND CLOSING</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.1</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Purchase and Sale</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 24pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor hereby agrees to sell, assign, transfer and convey the Assets to Purchaser, and
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    <font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font> <font style="font: 10pt 'Times New Roman';">&#160;</font>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.2</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Closing</b></font></td>
        </tr>

    </table>
    <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Subject to all other provisions of this Agreement, Closing shall take place on the Closing Date.</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Subject to all other provisions of this Agreement, title to, and beneficial ownership, risk and possession of, the Assets shall pass from Vendor to Purchaser upon Closing.</font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Purchase Price</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z957cc39562bb47fda1b2038bde0c4fe5" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The consideration to be paid by Purchaser to Vendor for the Assets (the &#8220;<b>Purchase Price</b>&#8221;) shall be One Million
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        </tr>

    </table>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;to the Petroleum and Natural Gas Rights, $1,040,000.00.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;to the Tangibles, $259,990.00.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;to the Miscellaneous Interests, $10.00.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In the determination of the Purchase Price payable for the Assets, Vendor and
        Purchaser are in agreement that the extent and value of past, present and future environmental, abandonment or reclamation liabilities related to the Assets is unknown as of the Closing Date, and Vendor and Purchaser have not attributed a specific
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On the Closing Date, Purchaser shall pay to Vendor an amount equal to the Purchase Price, plus or minus, as the case may
              be, the net amount set forth in the Closing Statement.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zcdf6830927d44054a20b98cfc8436b57" style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.4</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>GST and Other Sales Taxes</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z773c0fe33aa1449abbb2f372f1279491" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Purchase Price does not include an amount on account of GST payable in respect of the Transaction. At Closing,
              Purchaser shall pay to Vendor, in addition to the amounts specified pursuant to Clause 2.3 hereof, all GST payable in respect of the Transaction.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zf35775390a2c4a5c9d64e6a379ca9ee7" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Parties agree that, as between Vendor and Purchaser, Purchaser is solely liable for and Purchaser shall indemnify,
              defend and save harmless Vendor and all Vendor Related Persons for any Claims and Losses and Liabilities pertaining to any failure of Purchaser to pay or Vendor to collect any GST at Closing, except to the extent that such penalty, interest
              or other amounts payable by Vendor is the result of any act or omission by Vendor.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z3985f5c3e6e640878802632b0f49fabb" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Parties acknowledge that it is their understanding that no other sales taxes, fees or charges are payable in respect
              of the Transaction.</font></td>
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    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z2814fe9f91964db79005324e1276340e" style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.5</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Adjustments</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z12c931d5d300485288ea3ee11a8c5945" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">All benefits and obligations of any kind or nature received, accruing, payable or paid in respect of the Assets,
              including maintenance, development, capital and operating costs, royalties and proceeds from the sale of production, shall be apportioned between Vendor and Purchaser on an accrual basis in accordance with GAAP as of the Effective Time,
              subject to the following:</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z075e4d2301ea45188d076b303e8874a9" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 36pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 34.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">all rentals and similar payments, all cash advances and all property taxes, freehold mineral taxes and other taxes
              (excluding taxes based on income, net revenue or capital) paid, payable or levied on or in respect to the Assets, the ownership thereof or Petroleum Substances produced therefrom or allocated thereto shall be apportioned between Vendor and
              Purchaser on a per diem basis as of the Effective Time;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z7eb33047b3114f0f8beb5248cb75ac0e" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 36pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 34.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(ii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">all costs relating to any work performed or goods and services provided in respect of the Assets will be deemed to have
              accrued as of the date the work was performed or the </font>goods or services were provided, regardless of the time at which those costs become payable;</td>
        </tr>

    </table>
    <p style="margin: 0">&#160;</p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
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        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
    </div>
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        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(iii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">all deposits, prepaid amounts and other security and financial assurances provided by Vendor to Governmental Authorities
              or other Third Parties in respect to the Assets, the operation thereof, Petroleum Substances produced therefrom or allocated thereto or services provided in connection therewith do not comprise part of the Assets and shall be for the sole
              benefit and the account of Vendor;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z8015fee3344c453288bbc0f9f5369a75" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(iv)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">all overhead recoveries, operator&#8217;s fees and similar amounts provided for in the Title and Operating Documents and
              received or receivable by Vendor as operator of any Assets and relating to the period up to Closing shall be for Vendor&#8217;s benefit and account, with such amounts received or receivable in respect of the month in which Closing occurs
              apportioned between Vendor and Purchaser on a per diem basis as of the Closing Date;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zba57ad1e335b49208650c17d01b75124" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(v)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Petroleum Substances that were produced from or allocated to the Assets and that were beyond the wellhead as of the
              Effective Time do not comprise part of the Assets and shall remain the property of, and be for the benefit and the account of, Vendor; and</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z92d67bed2e1b44e7a69e32a477cc9813" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 0.5in; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(vi)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">no adjustments shall be made on account of any taxes calculated by reference to or assessed based on income, net revenue
              or capital that are payable by Vendor or Purchaser.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z479e65e067c74087aa6aaa9713525393" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">For the purposes of Clause 2.3(a), all adjustments between the Parties pursuant to this Clause 2.5 shall be allocated to
              the Petroleum and Natural Gas Rights.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z2ffb1f1f759b42418913eec845a19fae" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor shall prepare a statement based on Vendor&#8217;s good faith estimate of all adjustments to be made between the Parties
              (the &#8220;<b>Closing Statement</b>&#8221;) and deliver a copy of such statement, to Purchaser no later than the 3<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">rd</sup> Business Day prior to the Closing Date. Vendor shall
              assist Purchaser in verifying the amounts and adjustments set forth in the Closing Statement.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z3c65a0c55dc44c8f9e9d1190447d3ee5" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Within 180 days following Closing, Vendor shall prepare (or cause to be prepared) and deliver to Purchaser a written
              statement (the &#8220;<b>Final Statement of Adjustments</b>&#8221;) setting forth any adjustments to be made between the Parties that were not included in the Closing Statement or, if included in the Closing Statement, were not accurately included
              therein, together with the net amount payable by one Party to the other in respect of such adjustments. Except as provided in Clause 2.5(g), no further adjustments shall be made between the Parties after settlement of the adjustments set
              forth in the Final Statement of Adjustments. Vendor shall assist Purchaser in verifying the amounts and adjustments set forth in the Final Statement of Adjustments.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zc57a81369de744c2918e9f054728f357" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(e)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If Purchaser is of the opinion, acting reasonably, that any change is required to be made to the Final Statement of
              Adjustments as prepared by Vendor, it shall, within 30 days after the delivery of the Final Statement of Adjustments by Vendor to Purchaser (the &#8220;<b>Objection Date</b>&#8221;), give written notice to Vendor of any such proposed change, including
              the amount of such proposed change and other particulars of such proposed change, in reasonable detail. If Purchaser does not notify Vendor of any proposed change on or before the Objection Date, then Purchaser shall be deemed to have
              accepted the Final Statement of Adjustments.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zb8d3d61940294b429710fc16996a2117" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(f)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If Purchaser gives written notice to Vendor of any proposed change to the Final Statement of Adjustments on or before
              the Objection Date, and if the proposed change is disputed by Vendor and the Parties fail to resolve the dispute within 10 days after receipt by Vendor of such notice, then the Accounting Firm shall be immediately engaged by the Parties to
              resolve the dispute and the Accounting Firm shall be requested to render its decision without qualifications, other than the usual qualifications relating to engagements of this nature, within 14 days after the dispute is referred to it. The
              decision of the Accounting Firm shall be final and binding upon the Parties and shall not be subject to appeal by either Party. Each of Vendor and Purchaser shall be responsible for and shall pay 50% of the fees and expenses of the Accounting
              Firm.</font></td>
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    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
    </div>
    <table cellspacing="0" cellpadding="0" id="zdc4cbcfd99004851a9cafd7042129c9d" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.55pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(g)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">After delivery of the Final Statement of Adjustments, the Parties shall make further adjustments between them, or
              correct previously made adjustments made between them, under Clause 2.5(a), but excluding any matters finally resolved by the Accounting Firm, as and when identified by either of the Parties, provided that, no adjustments shall be made under
              Clause 2.5(a), including corrections to previously made adjustments, more than 1 year after Closing except:</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zeaaf18a6033d431484223999784948ab" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 36pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.75pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">in connection with a Thirteenth Month Adjustment, but only if a claim in respect of such Thirteenth Month Adjustment is
              made by one Party to the other Party within 2 years after Closing. If such notice is not given within such period, no adjustment in this regard shall be made;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zb929b930f84d4a79a11be55138fc038f" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 36pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.75pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(ii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">as a consequence of an audit relating to the Assets that was conducted by a Third Party (other than a Governmental
              Authority) having rights to do so pursuant to the Title and Operating Documents, but only if a claim in respect of such an audit is made by one Party to the other Party within 2 years after Closing. If such notice is not given within such
              period, no adjustment in this regard shall be made; or</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zf4208d1e253a4e7fbe26d4b67ed52074" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 36pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.75pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(iii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">an audit initiated by a Governmental Authority, but only if a claim in respect of such an audit is made by one Party to
              the other Party within 4 years after Closing. If such notice is not given within such period, no adjustment in this regard shall be made.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">At any time during the 1 year period immediately following Closing, each Party shall have the right, at its own cost and
              upon at least 5 Business Days prior notice to the other Party, to examine, copy and audit the accounting and financial records of the other Party relating to the Assets or the operation thereof for the purpose of verifying the calculation or
              re-calculation of the adjustments provided for in this Clause 2.5, provided that: in the case of inquiries relating to a Thirteenth Month Adjustment or an audit conducted by a Third Party (other than a Governmental Authority), such period
              shall extend to the end of the 2 year period immediately following Closing; and in the case of inquiries relating to an audit initiated by a Governmental Authority, such period shall extend to the end of the 4 year period immediately
              following Closing. Each Party shall cooperate with the other Party in order to provide reasonable access to its records to the other Party for the purposes of this Clause 2.5(h).</font></td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Amounts payable under this Clause 2.5 shall be paid within 30 days of delivery of the Final Statement of Adjustments or
              receipt of notice by a Party that is liable to pay such amount as provided in this Clause 2.5, subject to the limitations in Clause 2.5(g), provided that, if there is a dispute regarding the liability for or the amount of any permitted (or
              purportedly permitted) adjustment, the amount in dispute shall become due and payable within 30 days of settlement or other resolution of such dispute. If a Party fails to pay any such amount when it first becomes due and payable, then, in
              addition to and without prejudice to its obligation to pay such unpaid amount, such Party shall pay to the other Party interest on such unpaid amount calculated at an annual rate of interest equal to the Prime Rate plus 1% on a day-to-day
              basis for the period from the day on which such unpaid amount first became due and payable, to the day on which payment of such unpaid amount, together with such interest, is received by the other Party.</font></td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">For avoidance of doubt, the amount payable by the Parties in respect of the adjustments as provided in this Clause 2.5
              shall not be subject to, and shall not be counted toward, the limitations of Vendor&#8217;s Liability provided for in Clause 10.2.</font></td>
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    <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Article 3&#160;</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>CONDITIONS OF CLOSING</b></font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Purchaser&#8217;s Conditions</b></font></td>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The obligation of Purchaser to complete the Transaction and purchase the Assets from Vendor is subject to the following
              conditions precedent, which are inserted into and made part of this Agreement for the exclusive benefit of Purchaser and may be waived only by Purchaser:</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the representations and warranties of Vendor set forth in Clauses 5.1 and 5.2, shall be true and correct in all material
              respects (i) as of the date of this Agreement, and (ii) as of the Closing Date, or (iii) as of such other date or dates as specified therein,</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(ii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">all obligations and covenants of Vendor in this Agreement that are to be performed or complied with prior to or on the
              Closing Date (other than as otherwise required pursuant to Clause 4.1) shall have been performed or complied with in all material respects;</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(iii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">on the Closing Date, Vendor shall have duly delivered the agreements, certificates and other instruments and documents
              required pursuant to Clause 4.1;</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z032fa076923b4c6d8501f32e05ff0d9f" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(iv)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">no Governmental Authority shall have issued an order, decree or ruling or taken any other action restraining, enjoining
              or otherwise prohibiting the completion of the Transaction which has not been vacated or dismissed prior to the Closing Date;</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">during the period between the date hereof and the Closing Date there shall have been no physical damage to the Assets
              that would have a material adverse effect on the value of the Assets taken as a whole;</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(vi)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">all necessary governmental and other regulatory approvals to the sale of the Assets that are required prior to Closing
              shall have been obtained without conditions; and</font></td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If any of the conditions precedent in Clause 3.1(a) has not been satisfied, complied with or waived by Purchaser at or
              before the Closing Date, and Purchaser is not otherwise in breach of this Agreement, then Purchaser may terminate this Agreement by written notice to Vendor prior to the Closing Date.</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="ze029cd644cd24f5f96fca445f94619d0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If Purchaser terminates this Agreement as provided in Clause 3.1(b) as a consequence of one or more of the conditions
              precedent set forth in Clause 3.1(a) not having been satisfied or complied with, Purchaser and Vendor shall be released and discharged from all liabilities and obligations under this Agreement and the further performance of any duties or
              obligations under this Agreement, except as provided in Clause 10.3.</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The obligation of Vendor to complete the Transaction and sell and convey the Assets to Purchaser is subject to the
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        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the representations and warranties of Purchaser set forth in Clauses 5.1 and 5.4, shall be true and correct in all
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">on the Closing Date, Purchaser shall have duly made and delivered the payments, agreements, certificates and other
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin: 0">&#160;</p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
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          <td style="text-align: justify; font: 10pt 'Times New Roman';">Agreement, Vendor may terminate this Agreement by written notice to Purchaser prior to the Closing Date.</td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Efforts to Fulfil Conditions Precedent</b></font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser and Vendor shall proceed diligently and in good faith and use their reasonable
        efforts to satisfy and comply with the conditions precedent in Clauses 3.1(a) and 3.2(a) and shall provide the other Party with any reasonable assistance in the satisfaction of and compliance with the conditions precedent in Clauses 3.1(a) and
        3.2(a) that the other Party may reasonably request.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; text-align: center; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Article 4 </b>&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>CLOSING DELIVERIES</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="ze3284071b9ca4b44b54634d8d380c6f0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0pt"><br>
          </td>
          <td style="width: 35.7pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.1</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Deliveries by Vendor at Closing</b></font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On the Closing Date, Vendor shall deliver, or cause to be delivered, to Purchaser:</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.7pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">a General Conveyance duly executed by Vendor;</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z336648cde54848b286d4bc1a99435ba1" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0pt"><br>
          </td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">those of the Specific Conveyances which have been prepared as of the Closing Date;</font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zcfd63b23d5dc42ac9e3363be72f41260" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0pt"><br>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">an Officer&#8217;s Certificate signed by an officer of Vendor;</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z608658dcf2d44dc9a0e41438a8468e5f" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.7pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">releases and registerable discharges, or no interest letters, in respect of all registered Security Interests pertaining
              to the Assets which have been requested by Purchaser not less than 10 Business Days prior to Closing; and</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z9f9d34f8db1944a2b498e0aefad3e9d0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.7pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(e)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">such other items as may be specifically required hereunder or as may be reasonably requested by Purchaser.</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z0f5b08c0b13246afa22974a3e742a3d0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0pt"><br>
          </td>
          <td style="width: 35.7pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.2</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Deliveries by Purchaser at Closing</b></font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">On the Closing Date, Purchaser shall pay or deliver, or cause to be paid or delivered, to Vendor:</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">the amount specified in Clauses 2.3(b) and 2.4(a), in the manner contemplated in Clause 1.3(i);</font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0pt"><br>
          </td>
          <td style="width: 35.7pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">a General Conveyance duly executed by Purchaser;</font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z4d7036545085427abaecda84c2676ef4" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 35.7pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">an Officer&#8217;s Certificate signed by an officer of Purchaser; and</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z9780ae20bc1a4fd9b265043bd25a76da" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
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          <td style="width: 35.7pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">such other items as may be specifically required hereunder or as may be reasonably requested by Vendor.</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
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          </td>
          <td style="width: 35.7pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.3</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Specific Conveyances</b></font></td>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor, at its own cost, shall use commercially reasonable efforts to prepare the Specific Conveyances prior to the
              Closing Date, and to deliver the Specific Conveyances to Purchaser on the Closing Date, provided that, if and to the extent that any Specific Conveyances are not delivered by Vendor to Purchaser on the Closing Date, Vendor shall prepare and
              deliver to Purchaser the remaining Specific Conveyances as soon as is reasonably practicable after Closing, but in any event no later than 5 Business Days following Closing. It shall not be necessary for Specific Conveyances to have been
              executed prior to or at Closing by parties thereto other than Vendor and Purchaser.</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z477602218ed746c3b5c9272ddbb3df28" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In respect of any Specific Conveyances that require execution by Third Parties, promptly after Closing or the delivery
              of such Specific Conveyances after Closing, as the case may be, and, if necessary, the execution of such Specific Conveyances by Purchaser, Vendor shall send out to Third Parties and Purchaser shall co-operate with Vendor and provide all
              reasonable assistance that Vendor may reasonably request in connection with Vendor&#8217;s procurement of the execution of such Specific Conveyances by the parties thereto other than Vendor and Purchaser. In respect of any Specific Conveyances that
              do not require execution by Third Parties, Purchaser shall deliver such Specific Conveyances to the appropriate recipients thereof promptly after Closing or the delivery of such Specific Conveyances after Closing, as the case may be, and, if
              necessary, execution by Purchaser, including the registration with the appropriate Governmental Authorities of any such Specific Conveyances that require registration.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Except as otherwise expressly stated herein, Purchaser shall bear all costs, fees and deposits of every nature and kind
              in distributing and registering any Specific Conveyances and in providing any assurances or security required to convey, transfer and assign the Assets to Purchaser and to have Purchaser recognized as the holder thereof.</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Notwithstanding the forgoing in this Clause 4.3, in the case of any Specific
        Conveyances that are transfers of Permits or Crown lease transfers which may be filed electronically with the applicable Governmental Authority, promptly following Closing, Vendor shall submit electronic transfers for such Permits and Crown leases
        and Purchaser shall accept such electronic transfers from Vendor without delay, provided that, if Purchaser in good faith determines or believes that any of the electronic transfers are not complete and accurate, or the applicable Governmental
        Authority refuses to process any such transfers because of some defect therein, the Parties shall cooperate to duly complete or to correct such incomplete or inaccurate electronic transfers as soon as practicable and, thereafter, Vendor shall
        promptly re-submit such electronic transfers and Purchaser shall accept such electronic transfers from Vendor without delay.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zec75fa6e845441838344a67e9b731296" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If, for any reason, the AER or any other Governmental Authority or any other Third Party requires either Party
              (hereinafter referred to as &#8220;Such Party&#8221; in this and the next Clause) to make a deposit, to provide any undertakings, information or other documentation or to take any action as a condition of or a prerequisite for the approval of the
              transfer of any Permits or the transfer or assignment of any of the Assets to Purchaser, immediately after receiving notice of such requirements and at its sole cost, Such Party shall make such deposits, provide such undertakings, information
              or other documentation and take such action, as the case may be.</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zab42f865070245a6ace2e3326c1aa163" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(e)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If Such Party fails to make a deposit with the AER or other Third Party, as provided under Clause 4.3(d), within 5 days
              of Such Party&#8217;s receipt of notification that such deposit is required, the other Party (hereinafter referred to as the &#8220;Other Party&#8221; in this Clause) shall have the right, but not the obligation, to make such deposit on behalf of Such Party
              and Such Party acknowledges and agrees that the Other Party shall be Such Party&#8217;s agent with full power and authority to make such deposit for and on behalf of Such Party. Such Party shall reimburse the Other Party for the amount of any such
              deposit made by the Other Party and pay interest on the amount of such deposit at an annual rate equal to the Prime Rate plus one percentage point from the date on which the Other Party paid the deposit to the date on which the reimbursement
              for such deposit and payment of the corresponding interest is made in full. In addition to all other rights that may be available to the Other Party for the collection of such amounts from Such Party, the Other </font></td>
        </tr>

    </table>
    <p style="margin: 0">&#160;</p>
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          <td style="font: 10pt 'Times New Roman'; width: 0pt;">&#160;</td>
          <td style="font: 10pt 'Times New Roman'; width: 35.5pt;">&#160;</td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';">Party shall have the right to set-off the amount of any such deposit, including interest as provided in this Clause 4.3(e), against any monies payable by the Other Party to Such Party
            pursuant to this Agreement.</td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Article 5 </b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>REPRESENTATIONS AND WARRANTIES</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z81a8c45c2d8d49c7978cdb1fbcb2f049" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 35.5pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.1</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Mutual Representations and Warranties</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Each of the Vendor and the Purchaser makes the following representations and warranties to
        the other:</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">it is a corporation duly formed and existing under the laws of the Province of Alberta and registered to carry on
              business in the jurisdictions in which the Assets are situated, except where failure to so register would not adversely affect the ability of Vendor to complete the Transaction on the basis contemplated in this Agreement;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z88f8714428524c16adfd7437c8dcb335" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">it has all requisite power and capacity to sell and convey the Assets in accordance with the provisions of this
              Agreement;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the execution, delivery and performance of this Agreement by it will not result in any violation of, be in conflict with
              or constitute a default under: (i) any term or provision of any agreement or instrument to which it is party or by which it is bound; (ii) the constating documents of it; or (iii) any Applicable Law that is specifically applicable to it;
              except where such conflict or default would not adversely affect the ability of it to complete the Transaction on the basis contemplated in this Agreement;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">this Agreement and all other agreements delivered or to be delivered by it in connection herewith constitute, or when
              delivered shall constitute, legal, valid and binding obligations of it, enforceable against it in accordance with their respective terms, subject to all Applicable Law pertaining to bankruptcy, insolvency and creditors&#8217; rights and the general
              principles of equity;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">no authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required
              for the due execution, delivery and performance by it of this Agreement, other than authorizations, approvals or exemptions previously obtained and currently in force or to be obtained as and when required during the Pre-Closing Period; and</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">it has not incurred any obligation or liability, contingent or otherwise, for brokers&#8217; or finders&#8217; fees in respect of
              this Agreement or the Transaction for which Purchaser shall have any obligation or liability.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.5pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.2</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Representations and Warranties of Vendor</b></font></td>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor hereby makes the following representations and warranties to and in favour of
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor is a non-resident of Canada for the purposes of section 116 of the <i>Income Tax Act </i>(Canada);</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor is a registrant in respect of GST under the <i>Excise Tax Act</i> (Canada) and its GST registration number is
              100401702RC0001;</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor has made available to Purchaser or its representatives all relevant records, books, accounts, documents, files,
              information, materials and filings pertaining to the ownership of the Assets, including all of the relevant Title and Operating Documents and other agreements and documents comprising the Miscellaneous Interests, that are in Vendor&#8217;s
              possession and control as at the execution of this Agreement for the purpose of Purchaser&#8217;s due diligence review of Vendor&#8217;s title to the Assets;</font></td>
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    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.5pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">except for or pursuant to any Permitted Encumbrances:</font></td>
        </tr>

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          <td style="width: 34.75pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor has not alienated or encumbered the Assets or any part or portion thereof;</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 34.75pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(ii)</font></td>
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            <p style="margin-top: 0; margin-bottom: 0"><font style="font-family: 'Times New Roman'; font-size: 10pt;">on the Closing Date, the Assets shall be free and clear of all Encumbrances created by,</font></p>
            <p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt 'Times New Roman';">through or under Vendor; and</font></p>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 73pt; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 34.75pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(iii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor has done no act or thing whereby any of the Assets may be reduced, cancelled or determined;</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor has not received written notice of any default or purported default under any of the Title and Operating
              Documents included in the Miscellaneous Interests that remains outstanding in any material respect or that has not been remedied in all material respects and, to Vendor&#8217;s knowledge, there has been no act or omission by Vendor that reasonably
              could constitute a breach of or a default under a Title and Operating Document that has not been remedied in all material respects or which, if unremedied, could reasonably be expected to have a material adverse effect on the value of the
              Assets taken as a whole;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor has not received written notice of any breach or purported breach of any Applicable Law pertaining to the Assets
              or the ownership or operation thereof (excluding any Applicable Law relating to the environment) that remains outstanding in any material respect or that has not been remedied in all material respects and, to Vendor&#8217;s knowledge, there has
              been no act or omission by Vendor that reasonably could constitute a breach of any such Applicable Law that has not been remedied in all material respects or which, if unremedied, could reasonably be expected to have a material adverse effect
              on the value of the Assets taken as a whole;</font></td>
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    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.5pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(g)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">to Vendor&#8217;s knowledge, to the extent pertaining to the Assets:</font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 34.75pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">all Crown and lessor royalties and all lease rentals;</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        </tr>

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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">all production, severance and similar taxes, charges and assessments based upon or measured by the ownership or
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        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 37pt; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">that became due and payable to Third Parties on or prior to the date of this
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 37pt; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        </tr>

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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">excluding operating expenses incurred in the normal conduct of operations of the Assets, there are no AFEs or other
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        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">excluding notices in respect of any Environmental Liabilities identified by Purchaser prior to the date of this
              Agreement and in respect of which Purchaser provided written notice to Vendor prior to the date of this Agreement:</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        in all material respects;</font></p>
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        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor has not received written notice of any demands or notices issued by any Governmental Authority with respect to
              the breach of any Applicable Law relating to the </font>environment that are specifically applicable to the Assets or any portion thereof which remain outstanding in any material respect;</td>
        </tr>

    </table>
    <p style="margin: 0">&#160;</p>
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        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.55pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(k)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">those Wells listed in Part 2 of Schedule A for which Vendor is operator and, to Vendor&#8217;s knowledge, those Wells listed
              in Part 2 of Schedule A for which Vendor is not operator have been operated and, if applicable, abandoned in all material respects in accordance with good oil and gas field practices and the material requirements of Applicable Law during the
              period or periods in which Vendor has been the operator thereof</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z754bf78949714d92a15e193c79823e7b" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.55pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(l)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the Tangibles for which Vendor is operator and, to Vendor&#8217;s knowledge, the Tangibles for which Vendor is not operator<b>,
              </b>have been operated in all material respects in accordance with good oil and gas field practices and the material requirements of Applicable Law during the period or periods in which Vendor has been the operator thereof there are no
              unsatisfied judgments and no Claims in existence, and to Vendor&#8217;s knowledge, contemplated or threatened against or with respect to the Assets or the interests of Vendor therein which might result in impairment or loss of the interest of
              Vendor in and to the Assets or which might otherwise materially adversely affect the Assets;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z2d5882ed433e4ea096e3a981b0edfd88" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">To the Vendor&#8217;s knowledge, there are no material changes to the Assets from the Effective Time to Closing Date that have
              not been brought to the Purchasers attention;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z19e244ee0f9a4e0ab13cefddc57161c9" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.55pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(n)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor does not have a &#8220;Licensee Liability Rating&#8221; or &#8220;LLR&#8221; in respect of its assets and interest located in the
              Province of Alberta, as determined under or pursuant to the applicable AER rules, regulations, guidelines, directives, interim directives and policies that is less than 1.0 and will not have such an &#8220;LLR&#8221; that is less than 1.0 following
              Closing and the transfer of the Assets as contemplated in this Agreement; and Vendor is not aware of any fact or circumstance that would prevent or delay the transfer of any Permits relating to or forming part of the Assets as contemplated in
              this Agreement;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zf57443bf551e4dddbda9be61b5441839" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">there are no active area of mutual interest or area of exclusion provisions in any of the Title and Operating Documents
              or other agreements or documents to which the Assets are subject;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z2a7f68bbdb814b21acca75d87ecd3dd0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
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          <td style="width: 35.55pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(p)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">subject to: (i) Vendor&#8217;s other representations and warranties relating to the Assets or the operation thereof made in
              this Clause 5.1 (including any limitations expressed therein or elsewhere in this Agreement); (ii) the Permitted Encumbrances; (iii) the satisfaction of the obligations required to maintain the Title and Operating Documents in good standing;
              and (iv) all defects, deficiencies, discrepancies or adverse claims in or affecting the title or interest of Vendor in and to any of the Assets which Purchaser has waived or been deemed to have waived pursuant to the provisions of Article 9
              hereof; Purchaser may, for the residue of the term of the Title and Operating Documents, take possession of and use the Assets for its own use and benefit without any interruption by Vendor or any Person claiming by, through or under Vendor.</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zf60e29cb5d2b4058a6db0a0643d0e80a" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
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          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.3</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Limitation Regarding Vendor&#8217;s Representations and Warranties</b></font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
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          <td style="width: 35.55pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Each of Vendor&#8217;s representations and warranties set forth in Clauses 5.1 and 5.2 is made as of the date of this
              Agreement, and as of the Closing Date or, in each case, as of such other date or dates as specified therein.</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zb7773035a234442abaf21df013a80ebf" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.55pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Except as expressly set forth in Clauses 5.1 and 5.2, Vendor makes no representation or warranty regarding:</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z5747408749ca43a984729fc4df79188b" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 37.05pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.45pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the accuracy or completeness of any data or information supplied by or on behalf of Vendor under this Agreement or
              otherwise in connection with the Transaction;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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          </td>
          <td style="width: 35.45pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(ii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">the Assets, including: (A) the title or interest of Vendor in and to the Assets; (B) the quality, quantity or
              recoverability of Petroleum Substances within or under the Lands or any lands pooled or unitized therewith; (C) the value of the Assets or the future cash flow therefrom, including any past, present or future Losses and Liabilities, including
              Environmental Liabilities, pertaining to the Assets; (D) the quality, condition, fitness for any particular purpose or merchantability of any equipment or other tangible depreciable property included in the Assets or of any of the Lands or
              any lands pooled or unitized therewith; or (E) the effectiveness, standing or condition of any Miscellaneous Interests;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 37pt; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">and Vendor hereby expressly negates, and Purchaser hereby waives, all other
        representations or warranties relating to any such Person, property, circumstance or matter, regardless of whether made directly or indirectly, in verbal, written or electronic form, by Vendor or any of its directors, officers, employees or other
        personnel, consultants, agents, auditors, counsel or representatives, or implied under or arising by operation of law.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 37pt; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 35.2pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser acknowledges and confirms that except for the representations and warranties set forth in Clause 5.1 and 5.2,
              it is acquiring the Assets on an &#8220;as is, where is&#8221; basis and that it has performed its own due diligence and evaluations and that it has relied, and will continue to rely, upon its own due diligence and evaluations with respect to all matters
              pertaining to Vendor, the Assets and the Transaction.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zb2be6c696558409987888724ca07ff1b" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          </td>
          <td style="width: 35.2pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If any information and materials pertaining to the Assets delivered or made available by Vendor to Purchaser pursuant to
              this Agreement includes any evaluations, projections, reports or interpretive or non-factual materials prepared by or for or received by Vendor, Purchaser hereby releases and discharges Vendor from any Claim and all liability to Purchaser and
              Purchaser&#8217;s assigns and successors as a result of use or reliance upon them. Purchaser agrees that it will rely solely on its own geological and engineering interpretation analysis related thereto.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zfe83050b3d704a2e885257aa82e6f95c" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.4</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Representations and Warranties of Purchaser</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser hereby makes the following representations and warranties to and in favour of
        Vendor:</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z2f9fea2d7fd3456e807eb2dc6d14bdea" style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

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          <td style="width: 0.25in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser is not a &#8220;non-Canadian&#8221; as that term is defined in the <i>Investment Canada Act</i>;</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z4b6d6beb5eb84709992ee17f28026d9b" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser does not have a &#8220;Licensee Liability Rating&#8221; or &#8220;LLR&#8221; in respect of its assets and interest located in the Province of Alberta, as determined under or pursuant to the
              applicable AER rules, regulations, guidelines, directives, interim directives and policies that is less than 2.0 and will not have such an &#8220;LLR&#8221; that is less than 2.0 following Closing and the transfer of the Assets as contemplated in this
              Agreement; and Purchaser is not aware of any fact or circumstance that would prevent or delay the transfer of any Permits relating to or forming part of the Assets as contemplated in this Agreement;</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 37pt; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z961638a7714d45aa8694df5a92844866" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
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          <td style="width: 35.2pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser is entering into this Agreement and will acquire the Assets for itself and not as agent or representative for
              any Third Party; and</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z79c3b3118dc8401a8de68f8abd48efff" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 35.2pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(d)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser is a registrant in respect of GST under the <i>Excise Tax Act</i> (Canada) and its GST registration number is
              835610825 RT0001.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z3dc6ce0811e14bcdb4c656df9b7121a6" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.5</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Limitation Regarding Purchaser&#8217;s Representations and Warranties</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Each of Purchaser&#8217;s representations and warranties set forth in Clauses 5.1 and 5.4 is made
        as of the date of this Agreement and as of the Closing Date or, in each case, as of such other date or dates as specified therein.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Survival of Representations and Warranties</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 12pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0.5in;">Subject to the provisions of Article 8 and Clause 10.2, the respective representations and warranties set forth in Clauses 5.1, 5.2 and 5.4 shall, absent fraud, survive
      Closing for the 12-month period immediately following Closing.</p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 163pt; text-indent: 0in;">&#160;</p>
    <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; text-align: center; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Article 6 </b>&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>INDEMNITIES FOR REPRESENTATIONS AND WARRANTIES</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Vendor&#8217;s Indemnities for Representations and Warranties</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">From and after Closing and subject to Clauses 6.5, 6.6 and 10.2, Vendor shall be liable for
        all Losses and Liabilities suffered, sustained, paid or incurred by Purchaser or any of the Purchaser&#8217;s Related Persons, and, in addition and as an independent covenant, shall defend, indemnify and keep harmless Purchaser from and against all
        Losses and Liabilities suffered, sustained, paid or incurred by it and all Claims made against it, in either case, as a consequence of any representations or warranties contained in Clauses 5.1 and 5.2 being untrue or incorrect or of a breach by
        Vendor of any of its covenants contained in this Agreement that are to be performed or complied with on or prior to the Closing Date, provided that, Vendor shall have no liability under the foregoing assumption of liability and indemnity provided
        for in this Clause 6.1:</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z2a8b2ca4e92b4e2c8976b280a0422566" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">for any act or omission undertaken or omitted to be undertaken by or on behalf of Vendor in connection with Vendor&#8217;s
              obligations under Clauses 7.1 and 7.3 that was undertaken or omitted to be undertaken at the request of or with the written consent of Purchaser; or</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z6edb4feb61534567bdbec402135fcd46" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">for any such Losses and Liabilities or Claims in respect of which Purchaser, absent fraud, has not provided written
              notice thereof in reasonable detail to Vendor within the 12 month period immediately following Closing.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zdbad6a1290ff4284851719aeda8425c3" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.2</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Purchaser&#8217;s Indemnities for Representations and Warranties</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">From and after Closing and subject to Clauses 6.5 and 6.6, Purchaser shall be liable for
        all Losses and Liabilities suffered, sustained, paid or incurred by Vendor or any of the Vendor&#8217;s Related Persons, and, in addition and as an independent covenant, shall defend, indemnify and keep harmless Vendor from and against all Losses and
        Liabilities suffered, sustained, paid or incurred by it and all Claims made against it, in either case, as a consequence of any representations or warranties contained in Clause 5.4 being untrue or incorrect or of a breach by Purchaser of any of
        its covenants contained in this Agreement that are to be performed or complied with on or prior to the Closing Date, provided that Purchaser shall have no liability under the foregoing assumption of liability and indemnity provided for in this
        Clause 6.2 for any such Losses and Liabilities or Claims in respect of which Vendor, absent fraud, has not provided written notice thereof in reasonable detail to Purchaser within the 12 month period immediately following Closing.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.3</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Future Obligations</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">From and after Closing, Purchaser shall be liable for all Losses and Liabilities suffered,
        sustained, paid or incurred by Vendor or any of the Vendor&#8217;s Related Persons, and, in addition and as an independent covenant, shall defend, indemnify and save harmless Vendor and each of the Vendor&#8217;s Related Persons from and against all Losses and
        Liabilities suffered, sustained, paid or incurred by it and all Claims made against it; which, in either case, arise out of any matter or thing occurring, accruing or arising on and after the Effective Time and which relates to the Assets
        (excluding any Losses and Liabilities or Claims that pertain to any Environmental Liabilities, which shall be dealt with under Clause 6.4). Notwithstanding the foregoing in this Clause 6.3, nothing in this Clause 6.3 shall be construed so as to
        require Purchaser to be liable for or to indemnify Vendor or Vendor&#8217;s Related Persons in connection with any such Losses and Liabilities or any such Claims to the extent arising from:</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z8838da306ef0448b88175ce6080037a6" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">matters or things for which Purchaser is entitled to indemnification pursuant to Clause 6.1; or</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z6156c40e87634a9887bc504a4b843a23" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">the gross negligence or wilful misconduct of Vendor.</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zbe54f97e6cd44da480527bc693e8b66d" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.4</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Purchaser&#8217;s Environmental Indemnity</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">From and after Closing Purchaser shall be liable for all Losses and Liabilities suffered,
        sustained, paid or incurred by Vendor or any of the Vendor&#8217;s Related Persons, and, in addition and as an independent covenant, shall defend, indemnify and save harmless Vendor and each of the Vendor&#8217;s Related Persons from and against all Losses and
        Liabilities suffered, sustained, paid or incurred by it and all Claims made against it, in either case, in respect of all past, present and future Environmental Liabilities. This assumption of liability and indemnity shall apply without limit and
        without regard to the negligence of Vendor or any of the Vendor&#8217;s Related Persons. The Parties acknowledge that the Purchase Price has taken into account all of the Environmental Liabilities identified by Purchaser prior to the date of this
        Agreement and in respect of which Purchaser provided notice to Vendor prior to the date of this Agreement and, accordingly, this assumption of liability and indemnity shall apply in respect of all of the Environmental Liabilities. Purchaser hereby
        waives, and acknowledges and agrees that it shall not exercise, any right or remedy against Vendor or any of the Vendor&#8217;s Related Persons in respect to any such Environmental Liabilities that Purchaser may otherwise have under Applicable Law,
        including any right to name Vendor or any of the Vendor&#8217;s Related Persons as a party to any Claim commenced by Purchaser or by any Third Party in which Purchaser is a party. Notwithstanding the foregoing in this Clause 6.4, nothing in this Clause
        6.4 shall be construed so as to require Purchaser to be liable for or to indemnify Vendor or any of the Vendor&#8217;s Related Persons in connection with any such Losses and Liabilities or any such Claims to the extent arising from matters or things for
        which Purchaser is entitled to indemnification pursuant to Clause 6.1.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zfac49c8fa5864225a4088ac6e98f8e1c" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Time Limitation</b></font></td>
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    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Absent fraud, neither Party shall make any Claim under or in respect of Clause 6.1 or 6.2
        after the expiry of the 12 month period immediately following Closing and neither Party shall have any liability under Clause 6.1 or 6.2 unless written notice, with reasonable particulars, of the applicable Losses and Liabilities or Claim has been
        received by such Party during the 12-month period immediately following Closing.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z235db9f3707142f580dad491ecf9005d" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Limitation of Remedies</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zc98e0aca464d4f2aa97f646fec6c9e36" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">From and after Closing the sole remedy available to:</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z3710cd70640841cbb400e8496a691ef4" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 37.05pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.7pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser in respect to any of Vendor&#8217;s representations and warranties set forth in Clause 5.1 and 5.2 being untrue or
              incorrect or a breach by Vendor of any of its covenants in this Agreement that are to be performed prior to or on the Closing Date shall be Vendor&#8217;s assumption of liability and indemnity provided for in Clause 6.1 and Purchaser hereby
              releases and waives any and all other Claims or any other remedy or relief that it has or hereafter may have in this regard, whether arising at law, in equity or otherwise; and</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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    <table cellspacing="0" cellpadding="0" id="z2e2429ee36364192b9b851e66d1f5bb0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 36pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(ii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor in respect to any of Purchaser&#8217;s representations and warranties set forth in Clause 5.4 being untrue or incorrect
              or a breach by Purchaser of any of its covenants in this Agreement that are to be performed prior to or on the Closing Date shall be Purchaser&#8217;s assumption of liability and indemnity provided in Clause 6.2 and Vendor hereby releases and
              waives any and all other Claims or any other remedy or relief that it has or hereafter may have in this regard, whether arising at law, in equity or otherwise.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="ze0d025a0d15a4fa4828b02f4a1fce048" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Nothing in Clause 6.1 shall be construed so as to require Vendor to be liable for or to indemnify Purchaser or any of
              the Purchaser&#8217;s Related Persons in connection with any Consequential Losses or any Losses and Liabilities or any Claims to the extent arising as a consequence of the gross negligence or wilful misconduct of Purchaser or any of the Purchaser&#8217;s
              Related Persons.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zc5d8f123d8ae46c4a57591768694a6ca" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Nothing in Clause 6.2 shall be construed so as to require Purchaser to be liable for or to indemnify Vendor or any of
              the Vendor&#8217;s Related Persons in connection with any Consequential Losses or any Losses and Liabilities or any Claims to the extent arising as a consequence of the gross negligence or wilful misconduct of Vendor or any of the Vendor&#8217;s Related
              Persons.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; text-align: center; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Article 7&#160;</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>PRE-CLOSING PERIOD</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z7d47fd0cc57d4437933ecf4547d93613" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.1</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Maintenance of Assets</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zb05a816cc11040558fb4aa704421915c" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the Pre-Closing Period, to the extent that the nature of Vendor&#8217;s interests permits, and subject to the Title and Operating Documents and any other agreements and documents
              to which the Assets are subject, Vendor shall: (i) operate and maintain the Assets in all material respects, in accordance with generally accepted oil and gas industry practices, all Applicable Law pertaining to the Assets and the terms and
              conditions of the Title and Operating Documents included in the Miscellaneous Interests; (ii) pay or cause to be paid all costs and expenses relating to the Assets which become due and payable during the Pre-Closing Period; and (iii) continue
              to maintain its insurance coverage in respect of the Assets that is in effect as of the date of this Agreement;</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: justify; text-indent: -0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="za8220e6ffa4d4b88a74156f5075b8689" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.2</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Material Commitments During Interim Period</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zb21739cfd74f44dba2af71d99e534169" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          </td>
          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the Pre-Closing Period, to the extent that the nature of Vendor&#8217;s interests permits, and subject to the Title and
              Operating Documents and any other agreements and documents to which the Assets are subject:</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zdb02aa894720409589d4a971ff66a0ec" style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

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          <td style="width: 0.5in"><br>
          </td>
          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor shall not, without Purchaser&#8217;s prior consent:</font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0.5in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z096db0d012084c52ba31aabf894c45d0" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(A)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">make any commitment or propose, initiate or authorize any individual expenditure with respect to the Assets that is in
              excess of $25,000, except in the case of an emergency, to protect the environment, protect life or safety or preserve the Assets or title to the Assets, or to the extent required by the order or direction of a Governmental Authority;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z93fe5ad7d118481f9b058a76b5187219" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(B)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">surrender or abandon any of the Assets;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zf833618c8ab3449b9a532617de38543e" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(C)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">terminate or amend, or agree to the amendment of, in any material respect, the terms or conditions of any Title and
              Operating Documents included in the Miscellaneous Interests;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zd30fb769e3d647898f8d051291b028b4" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(D)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';">
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">sell, transfer, assign, encumber or otherwise dispose of, surrender, forfeit or abandon any of the
                Assets or any part thereof, create any adverse Claims against the Assets or agree to do any of the foregoing except for sales of surplus equipment, materials, supplies and inventory in the ordinary course of business and provided that such
                proceeds shall be adjusted for pursuant to Clause 2.5; or agree to do any of the foregoing. For the purposes of this Clause 7.2(a), Purchaser&#8217;s consent shall be deemed to have been provided if the matters referred to in this Clause 7.2(a)
                are identified or described in this Agreement or in respect of which Purchaser&#8217;s consent in writing has been obtained.</font></p>
          </td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
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        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
    </div>
    <table cellspacing="0" cellpadding="0" id="z05948ecfd2ff47c480404017c03d7d4a" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          </td>
          <td style="width: 35.6pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the Pre-Closing Period, without the written consent of Vendor, Purchaser shall not, and shall not be entitled to,
              propose to Vendor, or to cause Vendor to propose to others, the conduct of any operations on the lands or the exercise of any right or option relative to the Assets.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="ze1456c95819b4b398f035aa392fe07b5" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.3</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Lease Rental Payments</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zeab9c82534ae45668074d9c5e9158d3d" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          </td>
          <td style="width: 35.6pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Unless otherwise directed by Purchaser, Vendor shall pay on behalf of Purchaser all rentals and shut-in royalty payments
              for (i) Crown mineral and surface leases which are due and payable on or before May 30, 2021, and (ii) freehold surface leases which are due and payable on or before May 30, 2021. Vendor will be responsible for production accounting for the
              production month in which Closing occurs. Purchaser shall be responsible for production accounting after such date.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zd13b637d939a48e79a9ec88bc6d9c0c1" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.6pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor will be responsible for marketing all production to the last day of the month following the month in which
              Closing occurs. Vendor shall be entitled to market all such production in accordance with its current marketing policies and agreements pertaining to the Assets, if any. Purchaser shall be responsible for marketing of production after such
              date.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z05612b74e72f498497aa98e6a65253c2" style="font: 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0.25in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.4</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Purchaser Indemnity</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z425eb9ebdabb46a3be4a3a182c5fc124" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser shall indemnify and save harmless Vendor from and against all of Vendor&#8217;s Losses arising as a consequence of Vendor&#8217;s actions in compliance with the provisions of
              Clauses 7.1 and 7.2, except to the extent caused by the gross negligence or wilful misconduct of Vendor or its servants, agents or employees. Acts or omissions taken by Vendor or its servants or agents with the approval of Purchaser shall not
              constitute gross negligence or wilful misconduct for the purposes of this Clause.</font></td>
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    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 37pt; text-align: justify; text-indent: -37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; text-align: center; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Article 8 </b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>POST-CLOSING MATTERS</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z2d2bc51fcc7a48769cdbc990ac9e2ba1" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.1</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Post-Closing Matters</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z2c00c9e5bd4f40819de449d56c0cb639" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.6pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Following Closing, if and to the extent that Purchaser must be novated into, recognized as a party to, or otherwise
              accepted as assignee or transferee of Vendor&#8217;s interest in the Assets or certain of them, including any Title and Operating Documents or other agreements governing or otherwise pertaining to any Assets or the operation thereof, the following
              provisions shall apply with respect to the applicable Assets until such novation, recognition or acceptance has occurred:</font></td>
        </tr>

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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z6800dd16d40a4678887152d7c67f7302" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          </td>
          <td style="width: 36pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(i)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">at Purchaser&#8217;s sole cost and expense, Vendor shall operate and maintain the applicable Assets on behalf of Purchaser as
              its agent;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z19c993186b6e425daf075f47e7382d02" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 37pt; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 36pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(ii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor shall not initiate or authorize any operations with respect to the applicable Assets, except upon the written
              direction of Purchaser or if Vendor reasonably determines that such operations are required for the protection of life or property, in which case Vendor may take any actions that it reasonably determines are required in the circumstances,
              provided that, in such latter case Vendor shall promptly notify Purchaser of such actions and Vendor&#8217;s estimate of the costs and expenses associated therewith;</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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          </td>
          <td style="width: 36pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(iii)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor shall promptly provide to Purchaser all AFEs, notices and other information, documents and correspondence
              relating to the applicable Assets that it receives and shall respond promptly to such AFEs, notices and other information and documents pursuant to the written instructions of Purchaser, but only if such instructions are received on a timely
              basis, provided that Vendor may, but shall not be obliged to, refuse to follow any such instructions that it reasonably believes to be contrary to Applicable Law or in conflict with any applicable Title and Operating Document or other
              agreement; and</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z7d5308c7a71641a99f41387a7ff7d23d" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 36pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(iv)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">as soon as is reasonably practicable following Vendor&#8217;s receipt thereof, Vendor shall deliver to Purchaser all revenues,
              proceeds and other benefits received by Vendor and derived from the Assets (excluding any such revenues, proceeds or benefits that relate to matters arising prior to the Effective Time), less the share of the applicable Crown or lessor
              royalties, operating costs, treating, processing and transportation expenses and any other costs and expenses directly associated with the Assets and the Petroleum Substances produced therefrom or allocated thereto that have been paid or are
              payable by Vendor, and less any out-of-pocket costs and expenses paid or incurred by Vendor in the discharge of its duties and obligations pursuant to this Clause 8.1.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z016012e7c4174a48a003f892f3fe3f5e" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
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          <td style="width: 35.6pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If and to the extent that Vendor holds or maintains any Assets and takes actions with respect to any Assets on behalf of
              Purchaser pursuant to this Clause 8.1, then Vendor shall hold the same as bare trustee and be deemed to be the agent of Purchaser in such regard. Purchaser does hereby and shall ratify all actions taken by Vendor or refrained to be taken by
              Vendor pursuant to the terms of this Clause 8.1 in such capacity, with the intention that all such actions shall be for all purposes deemed to be those of Purchaser.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z5251f1ac33f5490599bbbf69edb3bb5a" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.6pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">If Vendor participates in any operations or exercises rights or options in respect to any Assets as the agent of
              Purchaser pursuant to this Clause 8.1, then Vendor may require Purchaser to secure the costs to be incurred by Vendor on behalf of Purchaser in respect to such operations or pursuant to such election in such manner as may be reasonably
              appropriate in the circumstances.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z112613868dd34b3b9e0c6661c881473c" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
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          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.2</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Delivery of Title and Operating Documents and Miscellaneous Interests</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Within 10 Business Days after Closing or any other day as Vendor and Purchaser may agree,
        Vendor shall deliver to Purchaser the Title and Operating Documents, and such other agreements and documents to which the Assets are subject, and the original copies of those records, files, reports, data and documents comprising Miscellaneous
        Interests, which are in the possession and control of Vendor, to the extent they are in physical form. In the case of Vendor&#8217;s electronic well files, Vendor shall make a digital version of such files available to Purchaser within such time period.
        Notwithstanding the foregoing in this Clause 8.2: (i) Vendor may make or retain a photocopy, at its own cost, of any original materials delivered to Purchaser under this Clause 8.2; and (ii) if and to the extent any such materials also pertain to
        assets or interests other than the Assets, photocopies or other copies of such materials may be provided to Purchaser in lieu of original copies.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Removal of Signs</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Within 60 days after Closing, Purchaser shall remove Vendor&#8217;s name from all signs and
        remove any other items indicating ownership by Vendor located on, at or near any Wells or Tangibles. If Purchaser fails to remove Vendor&#8217;s name from such signs or to remove such other items in respect to any such Wells or Tangibles within such
        period, then Vendor shall have the right, but not the obligation, to remove same and Purchaser shall reimburse Vendor for all reasonable costs incurred by Vendor in doing so.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Limitation of Liability for Post-Closing Operations</b></font></td>
        </tr>

    </table>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z5ea7fd86ac414c609f2cade92dee98ee" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.6pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';">
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Vendor and the Vendor&#8217;s Related Persons shall have no liability for any Losses and Liabilities paid,
                incurred or suffered by Purchaser or any of the Purchaser&#8217;s Related Persons or any Claims made against any of them relating to any operation or maintenance of the Assets after Closing or the discharge by Vendor of its obligations pursuant
                to the other provisions of this Article 8, </font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">except to the extent that any such Losses and Liabilities or any such Claims arise as a direct
                consequence of the gross negligence or wilful misconduct of Vendor or any of the Vendor&#8217;s Related Persons, provided that in no event shall Vendor be liable to Purchaser or Purchaser&#8217;s Related Persons for any Consequential Losses relating to
                such operation or maintenance of the Assets.</font></p>
          </td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
    </div>
    <table cellspacing="0" cellpadding="0" id="zaf474bb087d643fca4c138eb41f376d1" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Purchaser shall be liable for all Losses and Liabilities suffered, sustained, paid or incurred by
              Vendor or any of the Vendor&#8217;s Related Persons, and, in addition and as an independent covenant, shall defend, indemnify and save harmless Vendor and each of the Vendor&#8217;s Related Persons from and against all Losses and Liabilities suffered,
              sustained, paid or incurred by it and all Claims made against it, in either case, as a result of any actions taken or operations conducted in accordance with the other provisions of this Article 8, except to the extent arising as a direct
              consequence of the gross negligence or wilful misconduct of Vendor or any of the Vendor&#8217;s Related Persons.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z067ca046e5f24d618500a651db163f20" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0"><br>
          </td>
          <td style="width: 35.55pt; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>1.5</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Vendor deemed Purchaser&#8217;s Agent</b></font></td>
        </tr>

    </table>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z0e56142df7134a1da67460effcee03a4" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">(a)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Insofar as Vendor maintains the Assets and takes actions thereto on Purchaser&#8217;s behalf pursuant to
              this Article 8.5, Vendor shall be deemed to have been Purchaser&#8217;s agent hereunder. Purchaser ratifies all actions taken by Vendor or refrained from being taken by Vendor pursuant to this Article 8.5 in such capacity during such period, with
              the intention that all such actions shall be deemed to be Purchaser&#8217;s.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zf49d754d3f914962bbd4088f6c7e2f0d" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Insofar as Vendor participates in either operations or the exercise of rights or options as
              Purchaser&#8217;s agent pursuant to this Article 8.5, Vendor may require Purchaser to secure costs to be incurred by Vendor on Purchaser&#8217;s behalf pursuant to such election in such manner as may be reasonably appropriate in the circumstances.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z32a614ae865541329d9426665b7f0e0a" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.65pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Purchaser shall indemnify Vendor and its representatives against all Losses and Liabilities which
              Vendor or its representatives may suffer or incur as a result of Vendor maintaining the Assets as Purchaser&#8217;s agent pursuant to this Article 8.5, insofar as such losses are not a direct result of the gross negligence or wilful misconduct of
              Vendor or of its representatives. An action or omission of Vendor or of its representatives shall not be regarded as gross negligence or wilful misconduct to the extent to which it was done or omitted from being done in accordance with the
              Purchaser&#8217;s instructions or concurrence.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Article 9&#160;</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">DUE DILIGENCE REVIEW</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z62d9caf2adba4ad98458e43fe888c97f" style="font: bold 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">1.1</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Due Diligence</font></td>
        </tr>

    </table>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Purchaser acknowledges that it has, prior to the execution hereof,
        been given an opportunity to: (i) review Vendor&#8217;s title to the Assets; and (ii) conduct an environmental review of the Assets; and that it has satisfied itself in regard to both Vendor&#8217;s title to the Assets and all environmental matters relating to
        the Assets, including any past, present or future Environmental Liabilities. Purchaser expressly waives all defects relating either to Vendor&#8217;s title to the Assets or to environmental matters relating to the Assets, whether disclosed by Purchaser&#8217;s
        review or otherwise. However, nothing in this Clause shall be a waiver by Purchaser of any matters in respect of which it is entitled to indemnification pursuant to Clause 6.1.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Article 10</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">GENERAL</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">1.1</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Notices</font></td>
        </tr>

    </table>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zf551b09d4a06407c9d35f596123c2bc3" style="font: bold 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">(a)</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">The addresses for service of the Parties shall be as follows:</font></td>
        </tr>

    </table>
    <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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          <td style="width: 12%; font-size: 10pt"><font style="font-family: 'Times New Roman';"><b>Vendor: Limited</b></font></td>
          <td style="width: 53%; font-size: 10pt; padding-left: 0.25in"><font style="font-family: 'Times New Roman';"><b>Barnwell of Canada, Purchaser:</b></font></td>
          <td style="width: 35%; font-size: 10pt"><font style="font-family: 'Times New Roman';"><b>Tourmaline Oil Corp.</b></font></td>
        </tr>
        <tr style="vertical-align: top">
          <td style="font-size: 10pt"><br>
          </td>
          <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">&#160;</font></td>
          <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">2900, 250 &#8211; 6<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">th </sup>Avenue S.W.</font></td>
        </tr>
        <tr style="vertical-align: top">
          <td style="font-size: 10pt"><font style="font-family: 'Times New Roman';">&#160;</font></td>
          <td>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">2410, 500 &#8211; 4<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">th</sup> Avenue S.W.</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Calgary, AB T2P 2V6</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Attention: Land Department</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Email:</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">tcowan@octavianoil.ca</font></p>
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            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Calgary, Alberta T2P 3H7</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Attention: Land Department</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Email: Drew.Tumbach@tourmalineoil.com</font></p>
          </td>
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    <p style="margin: 0pt 0px; font: 10pt 'Times New Roman'; color: Red;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">(b)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">All notices, communications and statements required, permitted or contemplated in this Agreement
              shall be in writing, and shall be delivered as follows by personal delivery or courier to a Party at the address or fax number of such Party set out above, in which case the item so served or transmitted shall be deemed to have been received
              on the date of delivery if such delivery takes place or the item transmitted has been received in its entirety in a legible form prior to 5:00 p.m. on a Business Day. If the actual delivery of such notice occurs after 5:00 p.m. on a Business
              Day or on a day that is not a Business Day, then such notice shall be deemed to have been received on the first Business Day following the date on which such actual delivery was made or transmission and receipt were completed, as applicable.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z3f2231d43c2743b28075cd74388c959e" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

        <tr style="vertical-align: top; font: 10pt 'Times New Roman';">
          <td style="width: 0px; font: 10pt 'Times New Roman';"><br>
          </td>
          <td style="width: 35.5pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">(c)</font></td>
          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">A Party may from time to time change its address for service by giving written notice of such
              change to the other Party.</font></td>
        </tr>

    </table>
    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Limit of Liability</font></td>
        </tr>

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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Notwithstanding any other provision in this Agreement, in no event
        shall the liability of Vendor under or in respect of this Agreement, including all Claims by Purchaser arising out of or in connection with this Agreement, exceed, in the aggregate, an amount equal to the Purchase Price, taking into account all
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Neither Party may disclose the contents of this Agreement, including the name of the other Party,
              or any information concerning negotiations leading to this Agreement and the Transaction, without the prior written consent of the other Party. Nothing contained in this Agreement shall prevent a Party from disclosing such information: (i) to
              any Governmental Authority or to the public, but in either case, only if and to the extent that such disclosure is required under any Applicable Law or any stock exchange rule or policy to which such Party or its Affiliate is subject; (ii) or
              (ii) if required to obtain the consent to the Transaction by Vendor&#8217;s lenders or other security holders and, if applicable, to obtain their release of security interests in, or their acknowledgement of &#8220;no interest&#8221; in, the Assets; provided
              that, in each such instance, the Party that proposes to make such a disclosure shall advise the other Party of such proposed disclosure and shall use its reasonable efforts to prevent the disclosure of any such information that is not
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="za6e62b47b4484443b8eb1c9bd7859b47" style="width: 100%; font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">

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              entry into this Agreement promptly after the execution hereof and further press releases promptly after Closing, provided that in no circumstances shall either Party disclose the name of the other Party on any such press release or otherwise.
              Each Party consents to the inclusion of a generic description of its businesses by the other Party in such other Party&#8217;s press release(s) in this regard. The Parties agree that a press release issued by either Party may contain some or all of
              the financial terms of the Transaction. Without derogating from the Parties&#8217; rights to make public disclosures under Clause 10.3(a), each of Vendor and Purchaser shall use their reasonable efforts to furnish to the other Party with the
              proposed content of all press releases concerning this Agreement and the Transaction at least 24 hours prior to the release or publication thereof, but in any event prior to the release or publication with reasonably sufficient time for the
              other Party to review and comment.</font></td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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              shall at all times be read subject to the provisions of this Agreement and, in the event of conflict, the provisions of this Agreement shall prevail. This Agreement and expresses the entire agreement of the Parties with respect to the subject
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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              and enforced in accordance with and under the laws of the Province of Alberta and the laws of Canada applicable therein and shall, in every regard, be treated as a contract made in the Province of Alberta. Subject to Clause 2.5(e) and (f),
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              written consent of the other Party, which consent may be unreasonably and arbitrarily withheld. This Agreement shall be binding upon and shall enure to the benefit of the Parties and their respective administrators, trustees, receivers,
              successors and permitted assigns.</font></td>
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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              Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or remedy preclude any other or further exercise thereof or the exercise of any right or remedy in law or in equity or by other Applicable
              Law or otherwise conferred. No waiver of any provision of this Agreement, including this Clause 10.4(g), shall be effective otherwise than by an instrument in writing dated subsequent to the date of this Agreement, executed by a duly
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              of the Parties contained in this Agreement, including all qualifications thereof and limitations thereon, shall not be merged in any assignments, conveyances, transfers and other documents provided for under this Agreement and shall survive
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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">This Agreement may be executed in any number of counterparts with the
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 16pt;"><font style="font-family: 'Times New Roman';">IN WITNESS WHEREOF the Parties have executed this Agreement as of the day and year first above written.</font></p>
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          <td colspan="2"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>BARNWELL OF CANADA, LIMITED</b></font></td>
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          <td colspan="2"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>TOURMALINE OIL CORP.</b></font></td>
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          <td style="width: 2%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td style="width: 3%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Per:</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Name: Craig Hopkins</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Name: Drew Tumbach</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Title: President &amp; COO</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">This is the Execution Page for the Asset Purchase and Sale Agreement dated July 8, 2021,</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"><br>
        <font style="font-weight: normal">between Barnwell of Canada, Limited as Vendor and Tourmaline Oil Corp. as Purchaser.</font><br style="clear: both">
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font: 10pt 'Times New Roman';">Schedule A to an Asset Purchase and Sale Agreement dated July 8, 2021, between Barnwell of Canada,</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font: 10pt 'Times New Roman';">Limited as Vendor, and Tourmaline Oil Corp., as Purchaser.&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font>&#160; </p>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Part 1: &#160;&#160;&#160;&#160;&#160;Lands, Petroleum and Natural Gas Rights</b></font></p>
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    <table cellspacing="0" cellpadding="0" id="zd41bb456a2d743429b3b2499ea382e97" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

        <tr style="font: 10pt 'Times New Roman';">
          <td style="width: 12%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Title <br>
                Document</b></font></td>
          <td style="width: 32%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Lands &amp; Leased
                Substances</b></font></td>
          <td style="width: 12%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Working <br>
                Interest</b></font></td>
          <td style="width: 12%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Expiry Date</b></font></td>
          <td style="width: 32%; border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Encumbrances</b></font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0510090199</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;">
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">077-08W6M: NW 14</font></p>
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Production from the 100/13-14-077-08W6/00 well only)</font></p>
          </td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">28.26069%</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">5416090064</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">077-08W6M: SW 23 &amp; W 26 (Production
              from the 100/13-14-077-08W6/00 well only)</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">28.26069%</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">SEP-1-2025</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0503060568</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;">
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">077-08W6M: NW 23</font></p>
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Production from the 100/13-14-077-08W6/00 well only)</font></p>
          </td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">28.26069%</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S
              GOR: 1% paid on 28.26069% production. (no deductions), Paid to: 869120AB 100% Paid by: Barnwell 100%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0503060568</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;">
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">077-08W6M: NW 23</font></p>
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Production from the 100/12-23-077-08W6/02 well only)</font></p>
          </td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100%</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0503060568</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">077-08W6M: NW 23 PNG to base Charlie Lake
              (Excluding the 100/12-23-077-08W6/02 &amp; 100/13-14-077-08W6/00 wells)</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100%</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S
              GOR: 1% paid on 100% production. (no deductions), Paid to: 869120AB 100% Paid by: Barnwell 100%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">34698</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;">
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">078-08W6M: NW &amp; S 23</font></p>
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">PNG to base Charlie Lake Excl. NG in Gething Excl. 102/08-23-078-08W6M</font></p>
          </td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">14.16665%</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">GOR: 1%
              paid on 14.16665% production. (no deductions), Paid to: 869120AB 100% Paid by: Barnwell 100%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">34698</font></td>
          <td style="vertical-align: bottom; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">078-08W6M: S
              &amp; NW 23 (Production from 102/8-23-078-08W6 well only)</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">14.16665%</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">34698</font></td>
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;">
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">078-08W6M: NE 23</font></p>
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">PNG to base Charlie Lake Excl. NG in Gething Excl. 100/10-23-078-08W6M Excl. 100/16-23-078-08W6M</font></p>
          </td>
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;">
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BPO:</font></p>
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0%</font></p>
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
            <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">APO: 14.16665%</font></p>
          </td>
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">GOR: 1% paid on 14.16665% production. (no deductions), Paid to: 869120AB
              100% Paid by: Barnwell 100%</font></td>
        </tr>

    </table>
    <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
    </div>
    <table cellspacing="0" cellpadding="0" id="z4ea18c4192c14668af7b80fbafc54e22" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

        <tr style="font: 10pt 'Times New Roman';">
          <td style="width: 12%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">34698</font></td>
          <td style="width: 32%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">078-08W6M:
              NE 23 PNG to base Charlie Lake Excl. NG in Gething Excl. 100/16-23-078-08W6</font></td>
          <td style="vertical-align: bottom; width: 12%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt;">
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BPO:</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0%</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">APO: 14.16665%</font></p>
          </td>
          <td style="width: 12%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="vertical-align: bottom; width: 32%; border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt;">
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">GOR: 5-15% paid on 97.9167% Production</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Paid to: Barnwell 28.9361%</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Paid by: Kelt 100%</font></p>
          </td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">34698</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt;">
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">078-08W6M: 23</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Production from the 100/16-23-078-08W6 well only)</font></p>
          </td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">14.16665%</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">34698</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">078-08W6M: 23 NG in
              Gething Excl. 100/08-23-078-08W6M</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">9.58335%</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="vertical-align: bottom; border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">GOR: 1% paid on 7.18751% production. (no deductions), Paid to: 869120AB 100% Paid by: Barnwell 100%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">34698</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">078-08W6M: S &amp; NW
              23 NG in Gething</font></td>
          <td style="vertical-align: top; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt;">
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BPO: 7.18751%</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">APO: 9.58335%</font></p>
          </td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">34698</font></td>
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">078-08W6M: NE 23 NG in Gething</font></td>
          <td style="vertical-align: top; border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt;">
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BPO: 7.18751%</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
            <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">APO: 9.58335%</font></p>
          </td>
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Sec 15)</font></td>
          <td style="border: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 10pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Crown S/S</font></td>
        </tr>

    </table>
    <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 14.9pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Part 2:&#160;&#160;&#160;&#160; Wells</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 14.9pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zd3cc6fdf4ce54a3db4a06c8def841067" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

        <tr style="font: 10pt 'Times New Roman';">
          <td style="vertical-align: top; width: 12%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding-left: 13pt; text-indent: 2pt; padding-top: 5pt; padding-bottom: 5pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>License Number</b></font></td>
          <td style="width: 30%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>UWI</b></font></td>
          <td style="width: 46%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Well Name</b></font></td>
          <td style="width: 12%; border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Interest</b></font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0495593</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100/13-14-077-08W6/00</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">TOURMALINE HZ VALHALLA
              13-14-77-8</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">28.26069%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0397154</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100/12-23-077-08W6/00</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BARNWELL SPIRITR
              12-23-77-8</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0397154</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100/12-23-077-08W6/02</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BARNWELL SPIRITR
              12-23-77-8</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0281882</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100/08-23-078-08W6/00</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">KELT EXP SPIRITR
              8-23-78-8</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">7.18751%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0288744</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">102/08-23-078-08W6/00</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">KELT EXP SPIRITR
              8-23-78-8</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">14.16665%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0288744</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">102/08-23-078-08W6/02</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">KELT EXP SPIRITR
              8-23-78-8</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">14.16665%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0268756</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100/10-23-078-08W6/00</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">KELT EXP SPIRITR
              10-23-78-8</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">CONV-GOR</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0288489</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100/16-23-078-08W6/00</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">KELT EXP SPIRITR
              16-23-78-8</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">14.16665%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0288489</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100/16-23-078-08W6/02</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">KELT EXP SPIRITR
              16-23-78-8</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">14.16665%</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 13pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">0288489</font></td>
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-indent: 14pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">100/16-23-078-08W6/03</font></td>
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">KELT EXP SPIRITR 16-23-78-8</font></td>
          <td style="border: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">14.16665%</font></td>
        </tr>

    </table>
    <div> <br>
    </div>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
    </div>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 14.9pt;"><font style="font: 10pt 'Times New Roman';"><b>Part 3: &#160;&#160;&#160;&#160;Facilities</b></font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 14.9pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zc8d0ed80e94549edb377c4bad81e7187" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

        <tr style="font: 10pt 'Times New Roman';">
          <td style="width: 12%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>License
                Number</b></font></td>
          <td style="width: 30%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Government


                Code</b></font></td>
          <td style="width: 46%; border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Type</b></font></td>
          <td style="width: 12%; border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Facility Name</b></font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">W 0397154</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">ABBT0099422</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Single-Well Battery</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BARNWELL 12-23-077-08W6</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">F27495</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">ABBT0125778</font></td>
          <td style="border-top: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Multi-Well Battery</font></td>
          <td style="border-top: 1pt solid Black; border-right: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">KELT EXP 10-23-078-08W6</font></td>
        </tr>
        <tr style="font: 10pt 'Times New Roman';">
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">F27495</font></td>
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">ABGS0141677</font></td>
          <td style="border-top: 1pt solid Black; border-bottom: 1pt solid Black; border-left: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Gas Gathering System</font></td>
          <td style="border: 1pt solid Black; font: 10pt 'Times New Roman'; padding: 5pt 0.5pt; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">KELT EXP 10-23-078-08W6</font></td>
        </tr>

    </table>
    <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
    <div align="LEFT" style="margin-left: 12.7pt; margin-top: 3pt; margin-bottom: 3pt">
      <div style="font-size: 1pt; border-top: Black 1pt solid; width: 98%">&#160;</div>
    </div>
    <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
        <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
    </div>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal; font-style: normal;">Schedule B to an Asset Purchase and Sale Agreement dated July 8,
        2021, between Barnwell of Canada, Limited as Vendor, and Tourmaline Oil Corp., as Purchaser.</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;">&#160;</p>
    <div align="LEFT" style="margin-left: 0; margin-top: 3pt; margin-bottom: 3pt">
      <div style="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&#160;</div>
    </div>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">FORM OF GENERAL CONVEYANCE</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">GENERAL CONVEYANCE</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">THIS GENERAL CONVEYANCE made the ___ day of ___________ , 2021.</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">BETWEEN:</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 73pt; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">BARNWELL OF CANADA <font style="font-weight: normal">, </font>LIMITED <font style="font-weight: normal">a
          corporation having an office in the City of Calgary, Alberta (&#8220;</font>Vendor<font style="font-weight: normal">&#8221;)</font></font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px 0pt 73pt; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">- and -</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 73pt; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">TOURMALINE OIL CORP.<font style="font-weight: normal">, a corporation having an office in the City of
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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px 0pt 73pt; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">WHEREAS pursuant to the provisions of an Asset Purchase and Sale
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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">NOW THEREFORE THIS GENERAL CONVEYANCE WITNESSES that the Vendor and
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">1.</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Definitions</font></td>
        </tr>

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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Unless otherwise defined in this General Conveyance, capitalized words
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="za426c6b0add642e18780dc465d9e886c" style="font: bold 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">2.</font></td>
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        </tr>

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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Pursuant to and for the consideration provided for in the Sale
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z42e49f5eb70441d08198855bc9237995" style="font: bold 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">3.</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Effective Time</font></td>
        </tr>

    </table>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">This General Conveyance shall be effective as the date first written
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="zdbace44adabb40daa56a7c0f69279379" style="font: bold 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

        <tr style="vertical-align: top; text-align: justify">
          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">4.</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Subordinate Documents</font></td>
        </tr>

    </table>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">This General Conveyance is executed and delivered by the parties
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
      <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">5.</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Enurement</font></td>
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    <p style="margin: 0pt 0px; font: 10pt 'Times New Roman'; color: Red;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">This General Conveyance shall be binding upon and shall enure to the
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="width: 0.5in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">6.</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Further Assurances</font></td>
        </tr>

    </table>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Each party hereto will, from time to time and at all times hereafter,
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <table cellspacing="0" cellpadding="0" id="z7a9fc350400243bc89a2fd35a7a7f514" style="font: bold 10pt 'Times New Roman'; margin-top: 0px; margin-bottom: 0px; width: 100%;">

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        </tr>

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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Nothing contained in this General Conveyance shall in any way result
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        </tr>

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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        </tr>

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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">IN WITNESS WHEREOF the parties hereto have executed this General
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td colspan="2"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>BARNWELL OF CANADA, LIMITED</b></font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td colspan="2"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>TOURMALINE OIL CORP.</b></font></td>
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          <td style="width: 3%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td style="width: 46%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td style="width: 2%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td style="width: 3%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td style="width: 46%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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          <td style="border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Per:</font></td>
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        </tr>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Name: Craig Hopkins</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Name: Drew Tumbach</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Title: President &amp; COO</font></td>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Title: Vice President, Land and Contracts</font></td>
        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
      <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal; font-style: normal;">Schedule C to an Asset Purchase and Sale Agreement dated July 8,
        2021, between Barnwell of Canada, Limited as Vendor, and Tourmaline Oil Corp., as Purchaser.</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;">&#160;</p>
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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>FORM OF CERTIFICATE FOR VENDOR</u></font></p>
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    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">TO: &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Tourmaline Oil Corp. (&#8220;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">Purchaser<font style="font-weight: normal">&#8221;)</font></font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">RE: &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Asset Purchase and Sale Agreement dated July 8, 2021 (the &#8220;</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">Sale Agreement<font style="font-weight: normal">&#8221;) between Barnwell of Canada, Limited (&#8220;</font>Vendor<font style="font-weight: normal">&#8221;) and Tourmaline Oil Corp. (&#8220;</font>Purchaser<font style="font-weight: normal">&#8221;)</font></font></p>
    <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">The undersigned, Craig Hopkins, President &amp; COO of Barnwell of
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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td style="text-align: justify; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">The undersigned is personally familiar, in his capacity as an officer of Vendor, with the matters
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    <p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt 'Times New Roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <td><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">The definitions contained in the Sale Agreement are adopted in this Certificate and wherever used shall have the meanings ascribed to them in the Sale
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        </tr>

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    <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 37pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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            <td style="width: 47%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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        </font></p>
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            <td style="text-align: justify; font: 10pt Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Form S-3 No. 333-254365 pertaining to the at-the-market offering program
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            <td style="width: 50%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Date: <u>December 21, 2021</u></font></td>
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      &#160;
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: right;">Exhibit No. 31.2<a name="ExhibitNo.31.2"><!--Anchor--></a></p>
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">I, Russell M. Gifford, certify that:</font></p>
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          material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 19pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 19pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Disclosed in this report any change in the registrant&#8217;s
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 19pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 19pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;All significant deficiencies and material weaknesses in the
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 19pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 19pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Any fraud, whether or not material, that involves
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 19pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 19pt;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
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            <td style="width: 50%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Date: <u>December 21, 2021</u></font></td>
            <td style="width: 50%; border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">/s/ Russell M. Gifford</font></td>
          </tr>
          <tr style="vertical-align: top">
            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Russell M. Gifford</font></td>
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            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">Executive Vice President, Chief Financial Officer</font></td>
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      <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p>
      <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Barnwell Industries, Inc.</font></p>
      <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</font></p>
      <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certification Pursuant to&#160;</font></p>
      <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section 906 of the Sarbanes-Oxley Act of 2002</font></p>
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      <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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      <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</font></p>
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          2021 of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Form 10-K fairly presents, in all material respects, the consolidated financial
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      <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p>
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            <td style="width: 50%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated: <u>December 21, 2021</u></font></td>
            <td style="width: 50%; border-bottom: Black 1pt solid; padding-left: 0.125in"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Alexander C. Kinzler</font></td>
          </tr>
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            <td style="width: 50%"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated: <u>December 21, 2021</u></font></td>
            <td style="width: 50%; border-bottom: Black 1pt solid; padding-left: 0.125in"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Russell M. Gifford</font></td>
          </tr>
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            <td><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</font></td>
            <td><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name: Russell M. Gifford</font></td>
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      <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
      <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The foregoing certification is being furnished solely pursuant to
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      <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">A signed original of the written statement required by Section 906
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      <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</font></p>
      <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <br>
        </font></p>
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      <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: right;">&#160;Exhibit No. 99.1<a name="ExhibitNo.99.1"><!--Anchor--></a></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;">&#160;</p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">December 1, 2021</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Barnwell of Canada, Limited</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Suite 2410, 500 - 4th Avenue SW</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Calgary, Alberta</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">T2P 2V6</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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            <td style="width: 1in; text-align: left"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Re:</font></td>
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              <p style="margin-top: 0; margin-bottom: 0"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Evaluation of the Oil and Gas Properties of</font></p>
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            </td>
          </tr>

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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px 0pt 71pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Dear Sirs:</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">As requested, an evaluation has been made of all of the crude oil and natural gas assets of Barnwell of
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">All Company assets were evaluated in full detail. Individual property evaluations were prepared in the
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">This evaluation is based in part on prices, currency exchange rates and estimates which, in future, may
          differ materially from the forecasts utilized herein. In addition, changes in government policy and regulation may result in higher (or lower) royalties and taxes and the change may be material; therefore, the present values of revenues
          documented in this report do not necessarily represent the fair market value of the reserves evaluated. The reserve estimates presented in this report are considered reasonable as of the effective date of the report given the quality and quantity
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font: 10pt 'Times New Roman';"><img alt="(GRAPHIC)" src="img006_v1.jpg">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font: 10pt 'Times New Roman';"> <br>
        </font></p>
      <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
        <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
        <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Barnwell of Canada, Limited plus Octavian Oil Ltd.</b></font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center; text-indent: 0in;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Summary of Net Reserves - Constant Prices and Costs</b></font></p>
      <p style="margin: 0pt 0px; font: 10pt 'Times New Roman'; color: Red;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <tr style="vertical-align: bottom">
            <td>&#160;</td>
            <td>&#160;</td>
            <td style="text-align: left">&#160;</td>
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              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Net Remaining Reserves&#160;</font></p>
            </td>
            <td style="text-align: left">&#160;</td>
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            <td style="text-align: center; padding-bottom: 1pt">&#160;</td>
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            <td style="text-align: center; padding-bottom: 1pt">&#160;</td>
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Constant prices were prepared based on posted prices of crude oil and natural gas, and natural gas liquids
          using a 12 month unweighted arithmetic average closing price of each commodity on the 1st day of each month from October 1, 2020 through September 1, 2021 during the fiscal year. This report has been prepared using constant prices and costs and
          conforms to our understanding of the SEC&#8217;s guidelines and applicable financial accounting rules.</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">All prices used in the evaluation have been adjusted from posted prices for applicable quality, heating
          value and transportation considerations. The weighted average prices, after applicable adjustments, over the life of the properties used in the evaluation were US$ 49.73 barrel of oil, US$ 2.23 per Mcf of gas, US$ 36.07 per barrel of condensate
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">During the course of the evaluation, the Company provided InSite Petroleum Consultants Ltd. (&#8220;InSite&#8221;)
          personnel with basic information including land data, well information, geological information, reservoir studies, estimates of onstream dates, contract details, operating cost data, capital budget forecasts, operating statements and other
          financial data and future operating plans. Additional engineering, geological or economic data used in the preparation of this report were obtained from public records, other operators and from InSite non-confidential files. InSite encountered no
          indications that the data was incomplete or inaccurate. Should evidence become available in the future suggesting that the data was incomplete or inaccurate, InSite reserves the right to revise the estimates based on new data. Similarly, the
          performance of the producing entities subsequent to the effective date of this report may necessitate upward or downward revisions to the reserve and production estimates.</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In conducting our reserve analysis, proved reserve volumes were determined by volumetric, material balance,
          and production decline curve methods. The volumetric reserves were determined by reviewing all well logs, core, and geological data. Recovery factors were assigned after analyzing the performance of similar wells in the area. Historical well
          production was reviewed to determine reserves calculated by production decline curve analysis where sufficient historical data was available. The order of preference in choosing the methodology to be used was firstly production decline curve
          analysis or material balance where sufficient data was available for such analysis with volumetric calculations used where there was a lack of historical data.</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The production and revenue forecasts for each property and the corporate cash flow summaries have not been
          adjusted for risk. Well abandonment, decommissioning and site reclamation costs (ADR) were included in the economic runs for all wells with reserves assigned, as wells as the ADR costs for producing wells with no reserves assigned, suspended
          wells and existing facilities. The ADR costs and timing were adopted from the Company&#8217;s internal Asset Retirement Obligation (ARO) estimates.</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          determined in accordance with generally accepted evaluation practices. InSite used all assumptions, data, methods and procedures it considered appropriate, under the circumstances, to prepare this report.</font></p>
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">The extent and character of ownership and all factual data supplied by the Company were accepted as
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;">In this report, gross (or Company share) reserves are defined as the total remaining recoverable reserves owned by the Company before deduction of any royalties. Net
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify;">&#160;</p>
      <table cellspacing="0" cellpadding="0" id="za818280547f24304b7ae538665c97ec0" style="font: 10pt 'Times New Roman'; width: 100%; border-collapse: collapse;">

          <tr style="vertical-align: top">
            <td style="width: 50%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
            <td style="width: 50%"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Yours very truly,</font></td>
          </tr>
          <tr style="vertical-align: top">
            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          </tr>
          <tr style="vertical-align: top">
            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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          </tr>
          <tr style="vertical-align: top">
            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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          <tr style="vertical-align: top">
            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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              <p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt 'Times New Roman';">(2021-12-01)</font></p>
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          <tr style="vertical-align: top">
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          </tr>
          <tr style="vertical-align: top">
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          </tr>
          <tr style="vertical-align: top">
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            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          </tr>
          <tr style="vertical-align: top">
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              <p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt 'Times New Roman';">(2021-12-01)</font></p>
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            <td style="border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
          </tr>
          <tr style="vertical-align: top">
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          </tr>
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            <td><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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            <td style="border-bottom: Black 1pt solid"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></td>
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          </tr>
          <tr style="vertical-align: top">
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          </tr>

      </table>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;">&#160;</p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><img alt="" src="img006_v1.jpg">&#160;</p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"> <br>
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      <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
        <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
        <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>BOARD OF DIRECTORS</u></font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Kenneth S. Grossman <font style="font-weight: normal"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1, 3A,</sup> <sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">4</sup> &#8211; Vice-Chairman of the Board</font></font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Francis J. Kelly</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Bradley M. Tirpak</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Douglas N. Woodrum <font style="font-weight: normal"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1</sup></font></font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 45pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
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          <tr style="vertical-align: top">
            <td style="width: 50%">
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                  of the Audit Committee</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">2A </sup>Chair


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              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">2 </sup>Member


                  of the Reserves Committee</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">3 </sup>Member


                  of the Compensation Committee</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">4 </sup>Member


                  of the Nominating Committee</font></p>
            </td>
          </tr>

      </table>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 45pt;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><u>OFFICERS</u></font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Alexander C. Kinzler&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Chief Executive Officer, President, Chief Operating Officer,
          General Counsel</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Russell M. Gifford&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Executive Vice President, Chief Financial Officer, Treasurer,
          Secretary</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Joy Matsukawa&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Assistant Vice President, Assistant Controller</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: justify; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Sheryl A. L. Villanueva&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Assistant Vice President, Assistant Controller</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Heidi M. Uratsuka&#160;</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px 0pt 0.5in; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Assistant Vice President</font></p>
      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Denise L. Miyasato&#160;</font></p>
      <p style="margin-top: 0pt; text-align: left; margin-bottom: 0pt; margin-left: 0.5in"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Assistant Secretary&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 45pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <div style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt" id="DSPFPageBreakArea">
        <div style="TEXT-ALIGN: center" id="DSPFPageNumberArea">&#160;</div>
        <div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
          <hr noshade="noshade" style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000"> </div>
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Corporate Information</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 45pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <table cellspacing="0" cellpadding="0" id="z710a2c7bca6d4b7e8223c7eeafd8cc78" style="font: 10pt 'Times New Roman'; width: 100%; border-collapse: collapse;">

          <tr style="vertical-align: top">
            <td style="width: 50%">
              <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Corporate Headquarters&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Barnwell Industries, Inc.</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">1100 Alakea Street, Suite 500</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Honolulu, Hawaii 96813</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Phone &#160;(808) 531-8400</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Fax &#160;&#160;&#160;&#160;&#160;&#160;(808) 531-7181</font></p>
            </td>
            <td style="width: 50%">
              <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Canadian Office&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Barnwell of Canada, Limited</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Suite 2410, 500 4th Avenue S.W.</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Calgary, Alberta, Canada T2P 2V6</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Phone&#160;&#160;&#160;&#160;&#160; (403) 531-1560</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Fax&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (403) 266-4124</font></p>
            </td>
          </tr>
          <tr style="vertical-align: top">
            <td>&#160;</td>
            <td>&#160;</td>
          </tr>
          <tr style="vertical-align: top">
            <td>
              <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Big Island Office&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Water Resources International, Inc.</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">P.O. Box 44520, Kamuela Industrial Park</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Kamuela, Hawaii 96743</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Phone&#160; (808) 882-7207</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Fax &#160;&#160;&#160;&#160;&#160;&#160;(808) 882-7655</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
            </td>
            <td>
              <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Transfer Agent&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Broadridge Corporate Issuer Solutions, Inc.</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">51 Mercedes Way</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Edgewood, NY 11717</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Phone 1&#160;&#160;&#160;(877) 830-4936</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
              <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Website&#160;&#160;&#160; www.shareholder.broadridge.com</font></p>
            </td>
          </tr>

      </table>
      <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
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          <tr style="vertical-align: top">
            <td style="width: 20%; text-align: left; font-size: 10pt; font-weight: bold"><font style="font-family: 'Times New Roman';">Ticker Symbol:</font></td>
            <td style="width: 30%; text-align: left; font-size: 10pt; font-weight: bold"><font style="font-family: 'Times New Roman';">BRN</font></td>
            <td style="width: 50%; font-size: 10pt; font-weight: bold"><font style="font-family: 'Times New Roman';">Stock Exchange Listing</font></td>
          </tr>
          <tr style="vertical-align: top">
            <td style="text-align: left; font-size: 10pt; font-weight: bold"><font style="font-family: 'Times New Roman';">Website:</font></td>
            <td style="text-align: left; font-size: 10pt; font-weight: bold"><font style="font-family: 'Times New Roman';">www.brninc.com</font></td>
            <td style="text-align: left; font-size: 10pt; font-weight: bold"><font style="font-family: 'Times New Roman'; font-weight: normal;">NYSE American</font></td>
          </tr>

      </table>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 45pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;</font></p>
      <!-- Field: Rule-Page -->
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        <div style="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&#160;</div>
      </div>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Annual Meeting</b></font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font: 10pt 'Times New Roman';">Barnwell&#8217;s Annual Meeting of Stockholders will be held on May 6, 2022 at 9:00 a.m., Hawaii Standard Time,
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
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        <div style="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&#160;</div>
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font: 10pt 'Times New Roman';">&#160;</font></p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><b>Market Prices of Common Stock</b></font></p>
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 0px;"><font style="font: 10pt 'Times New Roman';">The following tables reflect the quarterly high and low sales prices, on the NYSE American, for the
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left; text-indent: 45pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">&#160;&#160;</font></p>
      <table cellspacing="0" cellpadding="0" id="zb398bf3f4a91480db3364151eb548544" style="width: 100%; font: 10pt 'Times New Roman'; border-collapse: collapse;">

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            <td style="font: 10pt 'Times New Roman'; padding-left: 5.4pt; border-bottom: 1pt solid Black;">Quarter ended</td>
            <td style="font: 10pt 'Times New Roman'; text-align: center; border-bottom: 1pt solid Black;">High</td>
            <td style="font: 10pt 'Times New Roman'; text-align: center; border-bottom: 1pt solid Black;">Low</td>
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            <td style="font: 10pt 'Times New Roman'; text-align: center;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">$0.30</font></td>
            <td>&#160;</td>
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            <td>&#160;</td>
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          <tr style="vertical-align: top; font: 10pt 'Times New Roman'; background-color: White;">
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          <tr style="vertical-align: bottom; font: 10pt 'Times New Roman'; background-color: White;">
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      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;">&#160;</p>
      <p style="font: bold 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Form 10-K</font></p>
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      <p style="font: 10pt 'Times New Roman'; margin: 0pt 0px; text-align: left;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: normal;">Stockholders may obtain a copy of the Company&#8217;s Form 10-K, without charge, by writing to
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
