Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 481

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 15
Chunk 481
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 course of business. The Company defends itself vigorously in all such matters. However, we cannot predict the outcome or effect of any of the potential litigation, claims or disputes. 
    
   The Company is not subject to any litigation at the present time. 
    
   C. Asset Retirement
    
   The Company currently estimates that the costs of plugging and decommissioning of the exploratory wells drilled to date in the former Joseph License area and the present New Megiddo Valleys License 434 to be approximately $571,000 based on current 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