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How Hipterra gets paid

The 5-year outlook showed what the business could be worth. This page covers the mechanics behind it: in each of Hipterra’s five revenue streams, who does the work, who puts up the capital, and what comes back to Hipterra.

Revenue streams: 5
Named deals in motion: 16
Fields mapped and modeled: 50+

Read it like a core sample. The top layers pay out soonest; the deeper layers take longer and carry more of the company’s long-term value. Select any layer to jump to it.

One mapping engine, five ways to get paid

Every stream starts from the same place: Hipterra’s ability to identify where hydrocarbons actually are. What changes from stream to stream is how much risk and capital Hipterra takes on, and how much of the result it keeps.

Stream	Hipterra’s role	Who funds development	How Hipterra is paid	When
1. Royalty service	Maps and models new zones; hands the analysis to the operator	The operator	Upfront service fee plus a 2% royalty or equivalent	First wells drilling Q4 2026
2. Exploration & JV	Picks the best fields from its own maps; non-operating partner	Hipterra with capital partners; local operator runs drilling	A 5% to 25%+ working interest in the field	As each JV is finalized
3. International licensing	Licenses the model; keeps interpretation in the US	The licensed partner and its clients	50% of licensing revenue	Target Q1 2027
4. Data centers	Brings its operator network to supply gas for on-site power	Powered Land Partners and the eventual data center builders	Data center development revenue through the Powered Land Partners partnership	2027 to 2028
5. Hipterra IP	Owns the model, the data, and the contract book	Built by streams 1 through 4	Enterprise value at an eventual acquisition	Long term

Royalty service: Hipterra maps, the operator drills

The simplest and fastest-paying stream. Hipterra supplies the analysis that tells an operator where to drill in a new zone. The operator owns the lease and pays for everything that happens after that.

How a deal runs

Hipterra
Identifies a promising new zone on an operator’s acreage.
Operator and Hipterra
Sign a service agreement: an upfront fee plus a royalty on future production.
Hipterra
Delivers the advanced analytics: maps, models, and drill targets.
Operator
Funds and manages drilling. Hipterra’s royalty is paid on every barrel produced.

Where the money comes from

Upfront service fee: Paid for the analysis itself, before any well is drilled. Cash in hand regardless of drilling results.
2% royalty, or equivalent: A share of production for as long as the wells produce. On every $100 of oil sold from a contracted well, $2 goes to the royalty interest.

Why the risk stays low

Hipterra never owns the lease, never pays drilling costs, and never manages the field. Its cost is the mapping work, which the upfront fee covers.

Where a clean royalty isn’t available, such as in mature fields, the deal can be structured as an equivalent interest instead. Concho 3.0 works this way; the 5-year outlook explains the structure.

Contracts in hand

Concho 3.04-well package
Each well is expected to start at 100+ barrels of oil per day.
Drilling Q4 2026
CF Farms6,000 acres
Fully mapped and modeled, ready for development.
Development 2027 to 2028

Team on these contracts: Robb Miller, Eric Fairbourn, Travis Fairbourn

Exploration and JV partnerships: Hipterra picks the field and takes a stake

Same analysis as stream 1, but Hipterra also helps fund and develop the field. In exchange, it owns a much larger share of what the field produces.

How a deal runs

Hipterra
Cherry-picks the fields with the most upside from the 50+ it has already mapped and modeled.
Local operator
Joins as operating partner, bringing on-the-ground expertise to run drilling and development.
Capital partners and Hipterra
Fund the drilling and development together, each in proportion to its interest.
Hipterra
Receives its working-interest share of production revenue from every well.

Royalty versus working interest

RoyaltyStream 1

Working interestStream 2

0%5%10%15%20%25%30%

What changes from stream 1

A royalty is a small, cost-free slice of production. A working interest is ownership of the wells themselves: Hipterra pays its share of drilling costs alongside its capital partners, and takes the same share of the revenue.

Hipterra stays a non-operator. Local operators manage the day-to-day drilling, so Hipterra doesn’t need its own field crews.

Why it’s worth the extra capital

Better odds than a typical driller: Hipterra chooses which fields to invest in using its own maps, so it only funds the opportunities its data rates highest.
A bigger share of the same barrel: A 5% to 25%+ interest is several times the 2% royalty in stream 1, on fields Hipterra has already modeled.

JV partnerships in progress

Allred Evans Heirs LeaseHardeman County, Texas
Operating partner: TLM Energy. Hipterra working interest: 25%.
25% WI set
David Stelzer LeaseGarza County, Texas
Operating partner: James Farmer Oil and Gas. Potential working interest of 5% to 20%.
5% to 20% potential
Harlan and Dorsogna LeaseNueces County, Texas
Operating partner: Texron Operating Company.
Terms in negotiation
May Lease and Tucker Ranch LeaseAnderson County, Texas
Operating partner: Trailblazer Operating Company.
Terms in negotiation
Additional contractsVarious
Several more partnerships are being discussed and negotiated.
In discussion

Team on these contracts: Robb Miller, Eric Fairbourn, Travis Fairbourn, Trae Ellerbe

International licensing: partners run the model abroad, interpretation stays in the US

Hipterra Africa is an independent team that runs Hipterra’s model under license, starting in Nigeria and expanding into neighboring countries. It pursues the same plays as streams 1 and 2, on its own ground.

How a deal runs

Hipterra Africa
Sources royalty and JV opportunities in Nigeria and surrounding countries.
Hipterra Africa
Runs the model in the field under its license from Hipterra.
Hipterra (US)
Interprets the results. That step never leaves the US team.
Hipterra (US)
Receives 50% of the revenue Hipterra Africa earns from those deals.

Where the money comes from

50% revenue share: Hipterra receives half of the revenue generated under the licensing agreement.
No local overhead: The African team is independent, so Hipterra doesn’t carry the cost of staffing or operating in-country.

Why interpretation stays home

Partners collect and run the data, but the interpretation, where the model turns readings into drill decisions, is retained in the US. That lets Hipterra grow into new countries without handing over the core of its IP.

The same structure can be repeated with partners in other regions.

Status

Hipterra AfricaNigeria, expanding regionally
Licensing agreement in place. Multiple contracts in the works.
Target start Q1 2027

Hipterra Africa team: Dr. Emmanuel Lare Ayoola, Rebecca Ayoola

Data centers: solving the power problem with natural gas

Data centers are limited less by land or buildings than by power. Hipterra has partnered with Powered Land Partners, which assembles land with power, fiber, and natural resources, and uses Hipterra’s operator network to supply natural gas for on-site generation.

How a deal runs

Powered Land Partners
Identifies land with the right power, fiber, and natural resources, starting with power.
Hipterra
Connects the site to operators in its network who can supply natural gas at scale.
Powered Land Partners
Develops the land and infrastructure into a site ready for data center construction.
Hyperscalers
Build and operate data centers on the powered site, where demand is already high.

9deals in negotiation

55,700+acres across the 7 deals with acreage set

4,150MMCF/D of gas across the 5 deals with volumes set

21+ GWpotential data center capacity on those 5 sites

Sites in the pipeline

Site	Region	Acres	Gas available	Data center size
PY Energy	Oklahoma	7,200	1,000 MMCF/D	5+ GW
OWV Resources	Ohio and West Virginia	2,900	1,000 MMCF/D	5+ GW
Mammoth Energy	West Texas	10,000+	1,000 MMCF/D	5+ GW
White Horse Operating	West Texas	4,000	150 MMCF/D	1+ GW
Bandanna Energy	West Texas	TBD	1,000 MMCF/D	5+ GW
North Tree Energy 1	West Texas	7,366	TBD	TBD
North Tree Energy 2	West Texas	4,283	TBD	TBD
BWC Operating	Idaho	20,000+	TBD	TBD (1 to 2 years from development)
MKR Resources	TBD	TBD	TBD	TBD

Development targeted for 2027 to 2028. Company names have been changed under NDA. MMCF/D is million cubic feet of natural gas per day; GW is gigawatts of power capacity.

Team on these contracts: Robb Miller, Austin Pritchett, Tate Murphy, Trae Ellerbe, Justin Morris, Rajeev Lal, Bryan Woods

Hipterra IP: what the other four streams add up to

Streams 1 through 4 each pay on their own. Together, they build the asset an acquirer would actually buy: a proven model, a growing contract book, and the relationships around it.

How the value compounds

Royalty serviceEach contract puts the model to work on a new zone, with recurring income attached.

Exploration & JVOwnership stakes in the fields the model rates highest add larger, longer-lived revenue.

LicensingShows the model can be run by partners in new countries while the interpretation stays with Hipterra.

Data centersExtends Hipterra’s operator network into a fast-growing market beyond oil.

The eventual acquisition case

The enterprise value of Hipterra compounds across all four streams. Each new contract, field, and partner adds to what the company is worth as a whole, not just to that year’s revenue.

Want the full picture?

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Important disclosures

Prepared by

This document was prepared by Limits LLC (operating as Black Mountain Solutions, or “BMS”), a technology consulting firm. Limits LLC is managed by Black Mountain Investment Group, LLC (“BMIG”). BMIG is not a registered broker-dealer, investment adviser, or fiduciary.

Not an offer; not legal, tax, financial, or investment advice

Nothing in this communication is an offer to sell, a solicitation to buy, or a recommendation of any security or investment. It does not constitute legal, tax, or financial advice. All content is for informational purposes only and should not be relied on as the basis for any investment decision.

Forward-looking statements

Descriptions of expected production, deal timing, ownership interests, revenue shares, data center capacity, and future development are forward-looking statements based on assumptions that may not materialize. Many deals described are still in negotiation and may change or not close. Actual results may differ materially due to commodity prices, well performance, counterparty performance, regulatory changes, geological conditions, and market conditions.

Data and assumptions

Deal information is drawn from materials provided by Hipterra. Limits LLC, BMS, and BMIG have not independently verified the accuracy or completeness of these inputs, including production estimates, acreage, gas volumes, ownership percentages, or timing.

Names changed under NDA

Company names in the data center section have been changed to honor non-disclosure agreements.

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