Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 399

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9C
Chunk 399
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 cost rather than Net Present Value. The Company expects to incur such costs during 2025. Liabilities for expenditures are recorded when environmental assessment and/or remediation is probable and the timing and costs can be reasonably estimated.
    
   Changes in Asset Retirement Obligations were as follows:

       December 31,    December 31,  
   2024    2023  
   US$    US$  
   thousands    thousands  
 Asset Retirement Obligations, Beginning Balance   571   571 
 Liabilities Settled   -   - 
 Revision of Estimate   -   - 
 Retirement Obligations, Ending Balance   571   571 

   D. Environmental and Onshore Licensing Regulatory Matters 
    
   The Company is engaged in oil and gas exploration and production and  may become subject to certain liabilities as they relate to environmental clean-up of well sites or other environmental restoration procedures and other obligations as they relate to the drilling of oil and gas wells or the operation thereof. Various guidelines have been published in Israel by the State of Israel’s Petroleum Commissioner and Energy and Environmental Ministries as it pertains to oil and gas activities. Mention of these older guidelines was included in previous Zion filings.
    
   The Company believes that these regulations will result in an increase in the expenditures associated with obtaining new exploration rights and drilling new wells. The Company expects that an additional financial burden could occur as a result of requiring cash reserves that could otherwise be used for operational purposes. In addition, these regulations are likely to continue to increase the time needed to obtain all of the necessary authorizations and approvals to drill and production test exploration wells.
    
   As of  December 31, 2024 and 2023, the Company accrued nil and nil for license regulatory matters.
    
   E. Charitable Foundations 
    
   Two charitable foundations were established, one in Israel and one in Switzerland, for the purpose of supporting charitable projects and other charities in Israel, the United States and internationally. A 3% royalty or equivalent interest in any Israeli oil and gas interests as  may now be held or, in the future be acquired, by the Company was assigned to each charitable organization (6% interest in the aggregate). At  December 31, 2024 and 2023, the Company did not have any outstanding obligation in respect of the charitable foundations, since to this date, no proved reserves have been found.

        F-