RESERVE PETROLEUM Business Summary

The Reserve Petroleum Company (RSRV) operates as an independent energy firm primarily focused on the exploration, development, and management of oil and natural gas properties across the mid-continent and western United States, including Texas, Oklahoma, Kansas, Arkansas, South Dakota, and Wyoming. The company’s revenue model is driven by three primary streams: the sale of oil and natural gas production from working interests, royalty income generated from its extensive portfolio of non-producing mineral interests (spanning over 88,000 net acres), and strategic investments in joint ventures and marketable securities. While historically involved in water well drilling through its subsidiary Trinity Water Services, the company has increasingly consolidated its focus on its core oil and gas segment, leveraging a low-leverage balance sheet to fund exploratory and development drilling programs internally. Within the micro-cap energy sector, RSRV competes with peers such as Mexco Energy Corporation, PEDEVCO Corp., and AMEN Properties, distinguishing itself through its high-margin mineral management strategy and a conservative capital allocation policy that emphasizes consistent dividend payouts over aggressive debt-fueled expansion. Leadership is characterized by exceptional stability and deep industry expertise, led by the McLain family who maintain significant beneficial ownership. Cameron R. McLain serves as President and Chief Executive Officer, a role he has held since 2008 and 2009 respectively, following a multi-decade tenure as the company’s Exploration Manager. He is supported by his brother, Kyle L. McLain, who serves as Executive Vice President and Chairman of the Board, and Lawrence R. Francis, the First Vice President and Chief Financial Officer. The board of directors features seasoned professionals with extensive backgrounds in energy auditing and finance, including Eddy R. Ditzler, a former audit partner at Grant Thornton LLP, and James L. Tyler, a certified public accountant. This veteran management team, which averages nearly 18 years of tenure, oversees a tightly held corporate structure where the McLain brothers and their affiliate, Lochbuie LLC, control approximately 17% of the outstanding common stock, ensuring a strong alignment between executive leadership and long-term shareholder interests.