Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 17

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 17
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 impact on our operations than if we had a more diversified portfolio
of properties. Such conditions could have a negative material effect on our business and financial condition.

If our access to oil and natural gas markets
is restricted, it could negatively impact our production and revenues. 

Market conditions or limited availability of satisfactory
oil and natural gas transportation arrangements may hinder our access to oil and natural gas markets or delay our production. The availability
of a ready market for our oil and natural gas production depends on a number of factors, including the demand for and supply of oil and
natural gas and the proximity of our production to pipelines and other midstream facilities. The ability to market our production depends
in substantial part on the availability and capacity of gathering systems, pipelines, rail transportation and processing facilities owned
and operated by third parties. In order to secure takeaway capacity and related services, we or our operating partners may be forced to
enter into arrangements that are not as favorable to operators as those in other areas.

Many of our joint operating agreements contain
provisions that may be subject to legal interpretation, including allocation of non-consent interests, complex payout calculations that
impact the timing of reversionary interests, and the impact of joint interest audits.

Substantially all of our oil and natural gas interests
are subject to joint operating and similar agreements. Some of these agreements include payment provisions that are complex and subject
to different interpretations and/or can be erroneously applied in particular situations.

Joint interest audits are a normal process in our
business to ensure that operators adhere to standard industry practices in the billing of costs and expenses related to our oil and natural
gas properties. However, the ultimate resolution of joint interest audits can extend over a long period of time in which we attempt to
recover excessive amounts charged by the operator. Joint interest audits result in incremental costs for the audit services and we can
incur substantial amounts of legal fees to resolve disputes with the operators of our properties.

11 

Certain U.S. federal income tax deductions currently
available with respect to oil and natural gas drilling and development may be eliminated as a result of future legislation.

Possible elimination of certain key U.S. federal income
tax incentives currently available to oil and gas exploration and production could be eliminated in the future. If enacted into law,
any such proposals would eliminate certain tax preferences applicable to taxpayers engaged in the exploration or production of natural
resources. The passage of any legislation as a result of such proposals or any other similar changes in U.S. federal income tax