Barnwell Industries Inc 8-K, filed Oct 19, 2026
Barnwell Industries Inc (BRN)
8-K
2026-10-19
For: 2026-10-13
View Original
Added on
October 19, 2026
About this 8-K
Barnwell Industries Inc filed this 8-K on October 19, 2026, reporting on events of October 13, 2026.
Barnwell Industries posted a Q&A on October 13, 2026 about its October 5, 2026 agreement to sell its Canadian oil and natural gas business for a C$9 million base price (C$4 million cash plus a 5% gross overriding royalty valued at C$5 million), with a C$1 million deposit in escrow. AI summary
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 13, 2026
(Exact Name of Registrant as Specified in its Charter)
(State or other jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of Principal Executive Offices) (Zip Code)
(713 ) 730-7026
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 7.01 |
Regulation FD Disclosure.
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On October 13, 2026, Barnwell Industries, Inc. (the "Company")
posted a Questions & Answers document on its investor relations website (https://ir.brninc.com) providing supplemental information regarding the previously announced proposed sale of the Company's Canadian oil and natural gas business. The
proposed transaction was previously disclosed in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on October 6, 2026, and the related press release.
A copy of the Questions & Answers document is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933,
as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 |
Financial Statements and Exhibits.
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(d) Exhibits.
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Exhibit No.
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Description
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Questions & Answers regarding Proposed Sale of Canadian Oil and Gas Business, dated October 13, 2026
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Cover Page Interactive Data File (embedded within the Inline XBRL document).
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Dated: October 19, 2026
BARNWELL INDUSTRIES, INC.
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By:
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/s/ Philip F. Patman, Jr.
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Name:
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Philip F. Patman, Jr.
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Title:
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Chief Financial Officer and Treasurer
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Exhibit 99.1
Canadian Sale Q&A
Proposed Sale of Canadian Oil and Gas Business
Questions & Answers | October 13, 2026
References Press Release, October 8, 2026 and the Form 8-K filed October 6, 2026
All dollar amounts below are in Canadian dollars (C$). The transaction remains subject to closing conditions.
1. What has Barnwell agreed to sell, and who is the buyer?
Barnwell has agreed to sell its Canadian oil and natural gas business to a local Canadian corporation. Following a pre-closing reorganization, the buyer will acquire the
shares of the Canadian operating company and a related intercompany note. The agreement was signed on October 5, 2026. The buyer is acquiring the Canadian oil and gas business, not Barnwell Industries, Inc. or its publicly traded shares.
2. What is the purchase price?
The base purchase price is C$9 million, consisting of C$4 million in cash and a 5% gross overriding royalty assigned a value of C$5 million for purposes of the
transaction. The price is subject to working-capital and other routine adjustments. The buyer has placed a C$1 million deposit in escrow, which will be credited toward the cash consideration at closing.
3. How does the retained royalty work?
A wholly owned Canadian subsidiary of Barnwell will receive a 5% gross overriding royalty on the acquired business’s interest in future wells drilled on the lands
covered by the royalty agreement. This preserves participation in future development. Royalty receipts depend on future drilling, production and commodity prices.
4. Can the buyer purchase the royalty?
Yes. An affiliate of the buyer may purchase the royalty at any time after closing for C$5 million. Royalties paid before exercise do not reduce that price. For example,
if Barnwell receives C$500,000 in royalties and the option is then exercised, it would retain that C$500,000 and receive the additional C$5 million, before taxes.
5. Does Barnwell continue to operate and retain the economics of the business until closing?
Yes. Barnwell continues to own and operate the Canadian business and retains its pre-closing operating economics, including revenues and the associated costs and
expenses, subject to the agreement’s closing-accounting and purchase-price adjustment provisions. Signing the agreement does not transfer those economics to the buyer. Excess cash and near-cash assets are retained outside the sale, and working
capital and indebtedness are reflected in the closing adjustments.
6. What happens to site restoration and abandonment obligations?
The Canadian business’s future site restoration and abandonment obligations will remain with the sold business under the buyer’s ownership. At closing, these obligations
will leave Barnwell’s consolidated balance sheet. Barnwell will remain subject to the contractual indemnification obligations in the sale agreement, so the transaction should not be understood as eliminating every possible residual liability.
7. Can Barnwell consider a superior proposal?
The agreement prohibits Barnwell and its representatives from soliciting competing acquisition proposals. Before shareholder approval, specified exceptions allow
consideration of unsolicited proposals. Barnwell may terminate to enter into an agreement for a superior proposal only after satisfying the agreement’s requirements, including Board determinations, notice and buyer matching procedures, payment of a
C$500,000 termination fee and return of the deposit. These provisions do not constitute an invitation for competing proposals.
8. Will shareholders receive sale proceeds directly?
The consideration is payable to Barnwell and its designated subsidiary, not directly to individual shareholders. The sale itself does not require shareholders to
exchange their Barnwell shares and does not itself declare or authorize a shareholder distribution. Any future distribution or other use of proceeds would be a separate Company decision, subject to applicable requirements and further disclosure.
Additional Information
These Q&As summarize selected aspects of the proposed transaction and do not replace the sale agreement or Barnwell’s SEC filings. The agreement and transaction
announcement are available with Barnwell’s Current Report on Form 8-K filed October 6, 2026. Readers should review those documents in full.
Important Information for Shareholders
SHAREHOLDERS SHOULD READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE, INCLUDING ALL AMENDMENTS AND SUPPLEMENTS, BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Barnwell intends to provide proxy materials in connection with the proposed transaction. When available, the proxy statement and other relevant SEC filings may be
obtained free of charge at www.sec.gov. Copies may also be obtained free of charge from Barnwell by contacting barnwellinfo@brninc.com or (713) 730-7026.
Barnwell and its directors and executive officers may be deemed participants in the solicitation of proxies relating to the transaction. Information about the
participants and their direct or indirect interests, through security holdings or otherwise, will be provided in the transaction proxy statement when available. Information concerning Barnwell’s directors and executive officers and their ownership
interests is also available in Barnwell’s SEC filings, including its proxy statements and subsequent beneficial ownership reports, available free of charge through the sources above.
Forward-Looking Statements
These Q&As contain forward-looking statements, including expectations concerning closing and its timing, purchase-price adjustments, pre-closing operating results,
employee continuity, tax treatment, royalty income, exercise of the royalty purchase option, transfer of obligations, strategic opportunities and shareholder value. These statements reflect current expectations and assumptions and involve risks and
uncertainties. Actual results may differ materially.
Risks include failure to obtain approvals or satisfy closing conditions; termination of the agreement; changes in commodity prices, production and costs; transaction
expenses and purchase-price adjustments; the availability and use of tax attributes; future drilling activity and the amount and timing of royalty receipts; whether the royalty option is exercised; employee departures; indemnification claims; changes
in Barnwell’s operating profile and continued-listing eligibility; and the availability, terms and results of strategic opportunities. Additional risks are described in Barnwell’s SEC filings. Barnwell undertakes no obligation to update
forward-looking statements except as required by law.