Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 345

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9C
Chunk 345
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 December 31, 2024, the Company did not record any post-impairment charge to its unproved oil and gas properties.  During the year ended  December 31, 2023, the Company recorded a non-cash post-impairment charge to its unproved oil and gas properties of $135,000. (see Note 4).
    
   Currently, the Company has no economically recoverable reserves and no amortization base. The Company’s unproved oil and gas properties consist of capitalized exploration costs of $21,682,000 and $16,637,000 as of  December 31, 2024, and 2023, respectively.

        F-
       10

        Zion Oil & Gas, Inc.

        Notes to Consolidated Financial Statements

   Note 2 - Summary of Significant Accounting Policies (cont’d)
    
   E. Property and Equipment 
    
   Property and equipment other than oil and gas property and equipment is recorded at cost and depreciated by the straight-line method over its estimated useful life of 3 to 14 years. Depreciation charged to expense amounted to $779,000 and $767,000 for the years ended  December 31, 2024, and 2023, respectively. See Footnote 2P for a discussion of the purchase of our drilling rig and related equipment.
    
   F. Assets Held for Severance Benefits
    
   Assets held for employee severance benefits represent contributions to severance pay funds and insurance policies that are recorded at their current redemption value.
    
   G. Use of Estimates
    
   The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of expenses. Such estimates include the valuation of unproved oil and gas properties, deferred tax assets, asset retirement obligations, borrowing rate of interest consideration for leases accounting and legal contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, foreign currency, and energy markets have combined