Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 3

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 3
---
 natural gas prices not only decrease our revenues, but an extended decline in oil or gas prices may
materially and adversely affect our future business, financial position, cash flows, results of operations, liquidity, ability to finance
planned capital expenditures and the oil and natural gas reserves that we can economically produce.

Additionally, the outbreak of COVID-19 and decreases
in commodity prices, resulting from oversupply, government-imposed travel restrictions, and other constraints on economic activity created
disruptions and volatility in the global marketplace for oil and gas. While demand and commodity prices recovered and are back to, or
greater than pre-pandemic levels, our financial results may continue to be depressed in future quarters. These factors may adversely impact
the supply and demand for oil and gas and our ability to produce and transport oil and gas and perform operations at and on our properties.
This uncertainty also affects management’s accounting estimates and assumptions, which could result in greater variability in a
variety of areas that depend on these estimates and assumptions, including investments, receivables, and forward-looking guidance.

Seasonality

Winter weather conditions and lease stipulations can
limit or temporarily halt our drilling and producing activities and other oil and natural gas operations and those of our operating partners.
These constraints and the resulting shortages or high costs could delay or temporarily halt the operations of our operating partners and
materially increase our operating and capital costs. Such seasonal anomalies can also pose challenges for meeting well drilling objectives
and may increase competition for equipment, supplies and personnel during the spring and summer months, which could lead to shortages
and increase costs or delay or temporarily halt our operations and those of our operating partners.

Governmental Regulation

Our operations are subject to various rules, regulations
and limitations impacting the oil and natural gas exploration and production industry as a whole.

Regulation of Oil and Natural Gas Production

Our oil and natural gas exploration, production and
related operations are subject to extensive rules and regulations promulgated by federal, state, tribal and local authorities and agencies.
Many states may also have statutes or regulations addressing conservation matters, including provisions for the unitization or pooling
of oil and natural gas properties, the location of wells, the method of drilling and casing wells, the surface use and restoration of
properties upon which wells are drilled, the sourcing and disposal of water used in the process of drilling, the flaring of natural gas,
completion and abandonment, the establishment of maximum rates of production from wells, and the regulation of spacing, plugging and abandonment
of